2 Required information (The following information applies to the questions displayed below] Lehighton Chalk Company manufactures sidewalk chalk, which it sells online by the box at $24 per unit. Lehighton uses an actual costing system, which means that the actual costs of direct material, direct labor, and manufacturing overhead are entered into year, actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Lehighton's first two years of operation is as follows: Part 2 of 2 ocess inventory. The actual application rate for manufacturing overhead is computed each Sales (in units) 2,709 Production costs: Variable manufacturing costs Fixed manufacturing overhead Selling and administrative costs: $13,200 $ 8,400 16,580 16,500 facturing costs: 10,800 10,800 9,888 9,800 Selected information from Lehighton's year-end balance sheets for its first two years of operation is as follows: Based on ab costing End of Year 1 End of Year 2 25,680 End of Year 2 25,600 $5,480 Finished-goods inventory Retained earnings 14,488 Based on variable costing Finished-goods inventory End of Year 1 2,400 11,400 on Chalk Company had no begin ning or ending work-in-process inventories for either year 1. Prepare operating income statements for both years based on absorption costing 2. Prepare operating income statements for both years based on variable costing Lehighton Chalk Company had no beginning or ending work-in-process inventories for either year. t 2 of 2 1. Prepare operating income statements for both years based on absorption costing. 2 Prepare operating income statements for both years based on variable costing 3. Prepare a numerical reconciliation of the difference in in come reported under the two costing methods used in requirements and Complete this question by entering your answers in the tabs below. Prepare operating income statements for both years based on absorption costing. Income Statement Year 2 Cost of goods sold Required 2 Required ion Complete this question by entering your answers in the tabs below. 2 of 2 Prepare operating income statements for both years based on variable costing. Year 2 Cost of goods sold eferences Total variable costs Flxed costs Total fixed costs Required 1 Required Lehighton Chalk Company had no beginning or ending work-in-process inventories for either year o2 1. Prepare operating income statements for both years based on absorption costing. 2 Prepare operating income statements for both years based on variable costing 3. Prepare a numerical reconciliation of the difference in income reported under the two costing methods used in requirements (1) and Complete this question by entering your answers in the tabs below Prepare a numerical reconciliation of the difference in income reported under the two costing methods used in requirements (1) and (2). Change in fixed overhead overhead costing expensed operating (in units) erences