Absorption and Variable Costing Comparisons Peachtree Company manufactures peach jam. Because of bad weather, its peach crop was small. The following data have been gathered for the summer quarter of 2012: Beginning inventory (cases) 0 Cases produced 10,000 Cases sold 9,400 Sales price per case $ 60 Direct materials per case $ 8 Direct labor per case $ 9 Variable manufacturing overhead per case $ 3 Total fixed manufacturing overhead $ 400,000 Variable selling and administrative cost per case $ 2 Fixed selling and administrative cost $ 48,000 (a) Prepare a functional income statement for the quarter using absorption costing. (b) Prepare a contribution income statement for the quarter using variable costing.