Gudas Corporation manufactures and sells a single product. Cost data for the product are given below: Variable costs per unit: Direct materials Direct labor $12 Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month 15 Units Produced 25,000 $750,000 $36 250,000 $1.000.000 The product sells for $120 per unit. Production and sales data for August follow: There was no beginning inventory. Units Sold 20,000 Required: a) Determine the unit product cost under: • Absorption costing • Variable costing b) Prepare a variable costing income statement for August. c) Prepare an absorption costing income statement for August. d) Explain why the operating income is different in parts (a) and (b).