Dattilio Corporation Manufactures and Sells One Product

Essay

Dattilio Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 39,600 units and sold 38,200 units. The company's only product is sold for $246 per unit.
Required:a. Assume the company uses super-variable costing. Compute the unit product cost for the year.
b. Assume the company uses super-variable costing. Prepare an income statement for the year.