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The Dorset Corporation produces and sells a single product. The following data refer to the...

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Accounting

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The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: 34,100 28, 100 $ 452 Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed per year Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead per year $ 23 $ 393,400 $ 208 $ 58 $ 38 $ 716, 100 Assume that direct labor is a variable cost. Required: . Compute the unit product cost under both the absorption costing and variable costing approaches. . Prepare an income statement for the year using absorption costing. Prepare an income statement for the year using variable costing. ting income figures in (b) and (c) above. A reason why absorption costing income statements are sometimes difficult to interpret is that

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