32 Degrees, Inc., a manufacturer of frozen food, began operations on July 1 of the current year. During this time, the company produced 140,000 units and sold 140,000 units at a sales price of $125 per unit. Cost information for this period is shown in the following table: Production Costs Direct materials $13.00 per unit Direct labor $6.00 per unit Variable overhead $2,100,000 in total Fixed overhead $3,220,000 in total Non-production costs: Variable selling and administrative $91,000 in total Fixed selling and administrative $458,000 in total Required: a) Prepare 32 Degree's December 31st income statement for the current year under absorption costing. b) Prepare 32 Degree's December 31st income statement for the current year under variable costing