Tech Helpers Company prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Tech Helpers provides a personal computer maintenance service that is sold for \($100\). The variable and fixed cost data are as follows:

During 2019, 4,500 service contracts were started and 5,000 service contracts were completed. At the beginning of 2019, Tech Helpers had 500 service contracts in process at a per-unit cost of \($90\) in beginning work-in-process inventory.
Required

a. Calculate reported income for management.

b. Calculate reported income for the bank.

c. Reconcile the two income amounts.

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Direct labor..... Overhead: Variable cost per unit Fixed cost.. Marketing, general, and administrative: Variable cost (per service contract completed). Fixed cost (per month).. $ 25.00 $ 5.00 $240,000 $ 5.00 $ 20,000