Q1. Montana Company produces basketballs. It incurred the following costs durin

Q1. Montana Company produces basketballs. It incurred the following costs during the year. Direct materials $14509 Direct labor $25625 Fixed manufacturing overhead $10440 Variable manufacturing overhead $32425 Selling costs $21365 What are the total product costs for the company under variable costing? Total product costs $Q2. On December 1Diaz Company introduces a new product that includes a one-year warranty on parts. In December 1000 units are sold. Management believes that 5% of the units will be defective and that the average warranty costs will be $80 per unit. Prepare the adjusting entry at December 31 to accrue the estimated warranty cost.