Mahugh Company,which has only one product,has provided the following data concerning its most recent month of operations: 
Required:
a)What is the unit product cost for the month under variable costing?
b)What is the unit product cost for the month under absorption costing?
c)Prepare an income statement for the month using the contribution format and the variable costing method.
d)Prepare an income statement for the month using the absorption costing method.
e)Reconcile the variable costing and absorption costing operating incomes for the month.
Definitions:
Recover
The act of getting something back that was lost or taken away.
Strict Liability
A legal principle that holds parties responsible for damages or harm caused by their actions, without the need for proving negligence or fault.
Obstacles to Recovery
Factors or circumstances that hinder or prevent an individual or entity from recovering from a loss or injury.
Section 402A
A section of the Restatement (Second) of Torts that established the principle of strict liability for defective products, making manufacturers and sellers liable for damages caused by defective products.
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