$2.250.000 $1.054,500 505,400 252.700 Sales (15,000 units) Production costs (19.000 units): Direct materials Direct labor Variable factory overhead Fored factory overhead Selling and administrative expenses: Verable selling and administrative expenses Fored selling and administrative expenses 169.100 1.991,700 $307.200 118.900 426,100 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales 2,250,000 Cost of goods sold Gross profit Selling and administrative expenses Operating income 307.200 X $ Feedback Checy Work 2. Under absorption costing, the cost of goods manufactured includes direct materials, direct labor and factory over b. Prepare an income statement according to the variable costing concept. Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 Sales Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fored costs Fored factory overhead costs 2. Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhea b. Prepare an income statement according to the variable costing concept. Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 Sales Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fored Costs: Forced factory overhead costs Forced selling and administrative expenses Total fixed costs Operating income Oh b. Under variable costing the cost of goods manufactured includes only variable manufacturing costs. What is the reason for the difference in the amount of operating income reported in (a) and (b) Under the absorption costing method, the forced manufacturing cost included in the cast of goods soldated the absorption costing income statement will have a higher operating income Consider what causing the difference in operating income reported under thehera