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Question: Income Statements under Absorption and Variable Costing In the coming year, Imre Company expects to sell 56,900 units at $26 each. Imre's controller provided the following information for the coming year. Units production 60,000 Unit direct materials $9.30 Unit direct labor $2.75 Unit variable overhead $1.65 Unit fixed overhead* $2.50 Unit selling expense (variable) $2.00 Total fixed selling expense $65,500 Total fixed administrative expense $244,000 *The unit fixed overhead is based on 60,000 units produced.
Required: 1. Calculate the cost of one unit of product under absorption costing.
2. Calculate the cost of one unit of product under variable costing.
3. Calculate operating income under absorption costing for next year.
4. Calculate operating income under variable costing for next year.
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