(10 points) ABC Company began operations in 2020 and manufacturers a Product Z. For 2020, ABC budgeted to produce and sell 25,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2020 are given as follows: 21,000 18,500 $432 Units Produced Units Sold Selling Price Variable Costs: Manufacturing Costs per Unit Produced Direct Materials Direct Manufacturing Labor Manufacturing Overhead Marketing Costs per Unit Sold Fixed Costs: Manufacturing Costs Administrative Costs Marketing Costs $33 23 62 46 $1,550,000 906,300 1,479,000 Requirements: 1. Prepare a 2020 income statement for ABC Company using variable costing. 2. Prepare a 2020 income statement for ABC Company using absorption costing. 3. Explain the differences in operating incomes obtained in requirements 1 and 2