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Rundle Company incurred manufacturing overhead cost for the year as follows. $ 38.80/unit $ 26.70/unit Direct materials Direct labor Manufacturing overhead Variable Pixed ($19.10/unit for 1,100 units) Variable selling and administrative expenses Pixed selling and administrative expenses $ 10.30/unit $21,010 $ 4,620 $14,300 The company produced 1,100 units and sold 600 of them at $180.30 per unit. Assume that the production manager is paid a 1 percent bonus based on the company's net income. Required a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement using absorption costing. RUNDLE COMPANY Income Statement (Absorption Costing) Operating expenses Cost of goods Sold Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare an income statement using variable costing. RUNDLE COMPANY Income Statement (Variable Costing) Variable costs == Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Absorption costing Variable costing Which approach is recommended? Required B

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