Absorption and variable costing income statements Stowe Manufacturing Company has determined the cost of manufacturing a unit of product as follows, based on normal production of 100,000 units per year:

1. Absorption costing (include under- or overapplied fixed overhead).
2. Variable costing.

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Direct materials....... Direct labor Variable factory overhead Fixed factory overhead $ 5 4 3 3 $15 Operating statistics for the months of March and April include the following: Units produced Units sold...... Selling and administrative expenses (all fixed) March April 12,000 12,000 8,000 12,000 $12,000 $12,000 The selling price is $18 per unit. There were no inventories on March 1, and there is no work in process on April 30. Required: Prepare comparative income statements for each month under each of the following: