Loker Corp. makes &sells garden hoses in 50 ft. lengths.
Problem II.Loker Corp. makes and sells garden hoses in 50 ft. lengths. The following information isavailable for the year just ended, the companys first year of operations:Units produced: 8,000Units sold: 6,000 Variable costs per unit:Manufacturing (Direct Materials, DirectLabor, and Variable Overhead) $12.00 (total)Selling and Admin. $2.00 Selling price:$25.00 per unitTotal fixed costs:Overhead $7,200Selling and Admin.- $5,000REQUIRED (You can use abbreviations if you wish. Organize your answers in a readable wayusing the columns and rows below.):220.127.116.11.5. Compute the cost of one unit of product using absorption costing.Compute the cost of one unit of product using variable costing.Prepare an income statement for the year in the proper format using absorption costing.Prepare an income statement for the year in the proper format using variable costing.Provide a quantitative explanation/reconciliation of why the two net income amounts thatyou calculated above are different (or the same). Unit Cost: Absorption Unit Cost: Variable Income Statement: Absorption Income Statement: Variable Reconciliation: Comments (optional):