1. HD Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows: 1(Click to view the data.) The selling price per unit is $3.000. The budgeted level production used to calculate the budgeted fixed manufacturing cost per unit is 1,100 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Read the requirements Requirement 1. Prepare income statements for HD in January, February, and March 2020 under (a) variable costing and (b) absorption costing. (a). Prepare income statements for HD in January, February, and March of 2020 under variable costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Complete all input fields. Enter a "0" for any zero balance accounts.) January 2020 February 2020 March 2020 (1) Revenues (2) Variable cost of goods sold: (3) Beginning inventory (4) Variable manufacturing costs (5) Cost of gaads available for sale (6) Doduct ending inventory (7) Variable cost of goods sald (D) Variable operating costs |(9) Contribution margin |(10) (11) (12) nam inanma totasot (b). Prepare in care sales for HD in January February and March 2020 uncer abstralian Casting. Print Complete the top half of the income statement for each month tiret, then complete the bottom porton. (Enter a "' for any zero balance accounts. Labe any variances as favorable F) or unfavorable (U). If an account does not have a variance, do not select a label. Aboviair used; d. Adjusirieni, Mig. = Manulat:luting.) January 2020 February 2020 March 2020 (13) (15) (161 (17) (10) (10 121) 22 124) 126) 1271 (29) Requirement 2. Explain the difference in operating income tor January, February, and March uncler variable oosting and Absorption costing. Begin by preparing a numerical reconciliation and explanation of the difference between operating income for each month under variable oosting and sosorption costing. Determine the torule that wil highight the difference between the operating incore under each melhod. Then complete the ecuation for each month (Enter an amount in each input cell and enter a 'O' for any zero balances. Abbreviations used. Beg. = beginning. End. = ending, Mey. = Manufacturing, and Val. = Variable.) Absorpliun-usling cristing income - operating into (301 Jan img. Feb Mar The difference between absuplier and variable cosling is due solely lu moving (31) in. invenituries as inventorius 1321 and uul olivariants they (53) 1: Data Table January February March Unit data: Beginning inventory 0 100 100 Production 1,100 1,050 1,120 Sales 1,000 1,050 1,130 Variable costs: $ 850 $ 850 $ 850 Manufacturing cost per unit produced Operating (marketing) cost per unit sold $ 575 $ 575 $ 575 Fixed costs: $ 550,000 $ 550,000 $ 550,000 Manufacturing costs Operating (marketing) costs $ 200,000 $ 200,000 $ 200,000 2: Requirements 1. Prepare income statements for HD in January, February, and March 2020 under (a) variable costing and (b) absorption costing. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. 2