I am having a lot of trouble trying to figure out absorption and variable income. I am going to include the problems I need to work on. I did get the first one correct but after that I have been completely lost. I have looked in the book but do not understand it because it does not give proper examples. Please help.

Absorption costing endeavours to calculate cost by distributing manufacturing costs over the number of units of production.

Direct material
Direct labour
Overhead costs (indirect labour, indirect materials, various other costs of production)
fixed manufacturing costs

form the base for this calculation which is then divided by expected volume of production to determine unit cost

Variable or direct costing identifies only those costs which vary with volume as product costs and all other costs will be recovered if sufficient volume is attained.

Direct material
Direct labour

form the basis of this calculation.

the other costs are deducted from whatever contribution sales 'less direct costs might leave