The Dean Company produces and sells a single product. The following data refer to the year just completed: Selling price$450 Units in beginning Inventory0Units produced25000Units sold22000Variable costs per unit:Direct materials$ 200 Direct labor$ 50 Variable manufacturing overhead$30 Variable selling and admin$ 15 Fixed Costs:Fixed manufacturing overhead$ 275000 Fixed selling and admin$ 230000 Assume that direct labor is a variable cost. Required: a. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches. b. Prepare an income statement for the year using absorption costing. c. Prepare an income statement for the year using variable costing.
