2 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 work-in-process inventory. The actual application rate for manufacturing overhead is computed each 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: 2 of 2 Sales (in units) Production (in units) Production costs: 2,700 3,300 2,109 Variable manufacturing costs Fixed manufacturing overhead $13, 200 8,400 16,500 16,509 Selling and administrative costs: Variable Fixed 10,800 10,800 9,800 9,800 Selected information from Lehighton's year-end balance sheets for its first two years of operation is as follows LEHGHTON Based on absorption costing Finished-goods inventory End of Year 1 End of Year 2 $5,400 14,400 25,600 End of Year 2 25,600 eferences Based on variable costing Finished-goods inventory Retained earnings End of Year 1 2,400 11,400 Lehighton Chalk Company had no beginning 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. 3. Prepare a numerical reconcilation of the difference in income reported under the two costing methods used in requirements () and Lehighton Chalk Company had no beginning 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 2f 2 3. Prepare a numerical reconciliation of the difference in income reported under the two costing methods used in requirements () and Complete this question by entering your answers in the tabs below for both years based on costing LEHIGHTON CHALK COMPANY Cost of goods sold References Required 2> rt 2 of 2 nts Cost of goods sold References 2 of 2 costing. 2. Prepare operating income statements for both years based on variable costing. (1) and (2). Change in fixed (in units) References