Paint More LLC

Paint More LLC has organized a new division to manufacture and sell specialty paint. The division’s monthly costs are shown below:Manufacturing costs:Variable costs per unit: Direct materials $12Variable manufacturing overhead $1Fixed manufacturing overhead costs (total) $100,000Selling and administrative costs: Variable 7% of salesFixed (total) $31,000Because the production is highly automated, the company includes its labor costs in its fixed manufacturing overhead. The gallons of paint sell for $68 each. During September, the first month of operations, the following activity was recorded:Units produced 5,000Units sold 4,000Submit an Excel document which each tab labeled by item number in good form that demonstrates the following:Compute the unit product cost under:Absorption costingVariable costingPrepare an absorption costing income statement for SeptemberPrepare a contribution format income statement for September using variable costing