Johnson Corporation_absorption costing_variable costing

QuestionJohnson Corporation manufactures and sells a single product. The following costs were incurred during the company’s first year of operations:! Variable costs per unit: Manufacturing: Direct materials $8 Direct labor $7 Variable manufacturing overhead $2 Variable selling and administrative $5! Fixed costs per year: Fixed manufacturing overhead $350,000 Fixed selling and administrative $220,000! During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company’s product is $55 per unit.! Required:a) Compute the unit product cost assuming that the company uses:1) The absorption costing method.2) The variable costing method.3) The throughput costing method.b) Prepare an income statement using the variable costing method.