178 minutes remaining 6 OF 6 QUESTIONS REMAINING Question 4 14 Points Suggested time : 25 minutes The following price and operating cost information applies to ABC Motorcycle Company. Price $10 000 per motorcycle Variable manufacturing costs: I Raw materials $ 2 000 per motorcycle Direct labour and variable overhead $ 1 000 per motorcycle Fixed manufacturing costs $40 000 per month Variable selling and administrative $ 250 per motorcycle Fixed selling and administrative $40 000 per month No beginning balance in finished goods is evident because the beginning inventory account on the balance sheet is zero. Average manufacturing is 10 motorcycles per month. Sales are seasonal, so in some months no motorcycles are produced, while in other months manufacturing is high. During the most recent month, the company produced 18 motorcycles and sold 15. Required Questions Filter (6) BLAUPUNKTRequired (a) Prepare an income statement for the most recent month using the variable costing method.(4 marks) (b) Prepare an income statement for the most recent month using the absorption costing method and choose a denominator level that represents 'normal' capacity (average manufacturing) (5 marks) (c) Reconciles the incomes among the two income statements