DescriptionManagerial Accounting focuses heavily on finding solutions to numerical problems.  With that in mind, most units will include a number of problems. For each problem, you will need to provide more than a simple numerical response. Your solutions should thoroughly address the issue and present the findings in a meaningful format similar to those developed within the chapters and as part of the review exercises solutions. Part value may be assigned for incorrect responses.Question 1: (40 marks)Stark and Company would like to evaluate one of the product lines that they sell to the defense department. Every month the Stark and Company produce an identical number of units, although the sales in units differ from month to month.Selling price$105Units in beginning inventory110Units produced6,400Units sold6,100Units in ending inventory600Variable costs per unit:Direct materials$62Direct labour$48Variable manufacturing overhead$3Variable selling and administrative$7Fixed costs:Fixed manufacturing overhead$64,000Fixed selling and administrative$35,600Required: 1)     Under variable costing, identify the unit product cost for the month.2)     What is the unit product cost for the month under absorption costing?3)     Prepare an income statement for the month using the contribution format and the variable costing method.4)     Prepare an income statement for the month using the absorption costing method.Question 2: (12 marks)The following information pertains to Death Star Corporation for a period:Selling price per unit49Standard fixed manufacturing costs per unit24Variable selling and administrative costs per unit3Fixed selling and administrative cost per unit14900Beginning inventories:     Units?     Standard fixed manufacturing cost36,900     Standard variable manufacturing cost18,700     Units produced8,900     Units sold8,600Required:1)     Assume the unit standard costs data for the beginning and ending inventories remained constant during the period. What was the total standard cost of the ending inventory under absorption costing?Question 3: (30 marks)DC and Marvel would like to evaluate one of the product lines that they sell to defense department. Every month the Stark and Company produce an identical number of units, although the sales in units differ from month to month.Selling price$111109Units in beginning inventory400360Units produced8,8006900Units sold8,9007200Variable costs per unit:     Direct materials$3429     Direct labour$3731     Variable manufacturing overhead$32     Variable selling and administrative$97Fixed costs:     Fixed manufacturing overhead$61,60053,500     Fixed selling and administrative$169,100145,000Required:1)     Compute the total Contribution Margin.2)     Compute the Operating Income under Variable Costing.3)     Prepare a reconciliation from your Variable Costing Operating Income to compute Operating Income under absorption costing. Question 4: (18 marks)Stark and Company’s has following cost data:Systems development$29,000Final product testing and inspection$1 2,000Quality data gathering, analysis, and reporting$ 9,000Net cost of scrap$58,000Returns arising from quality problems$56,000Amortization of test equipment$53,000Rework labour and overhead$16,000Test and inspection of incoming materials$38,000Product recalls$33,000Required:1)     Determine the prevention cost?2)     Determine Total appraisal cost?3)     Determine the total internal failure?