Absorption and variable costing income statements for two months and analysis Instructions Labels and Amount Descriptions Absorption Costing Income Statement - March Absorption Costing Income Statement - April Variable Costing Income Statement - March Variable Costing Income Statement - April Final Questions X Instructions During the first month of operations ended March 31, 2016, Hip and Conscious Clothing Company produced 56,000 designer cowboy hats, of which 52,450 were sold. Operating data for the month are summarized as follows: 1 Sales $839,200.00 2 Manufacturing costs: 3 Direct materials $425,600.00 4 Direct labor 123,200.00 5 Variable manufacturing cost 67,200.00 6 Fixed manufacturing cost 56,000.00 672,000.00 7 Selling and administrative expenses: 8 Variable $31,470.00 9 Fixed 26,225.00 57,695.00 During April, Hip and Conscious Clothing produced 48,900 designer cowboy hats and sold 52,450 cowboy hats. Operating data for April are summarized as follows: 1 Sales $839,200.00 2 Manufacturing costs: 3 Direct materials $371,640.00 4 Direct labor 107,580.00 5 Variable manufacturing cost 58,680.00 6 Fixed manufacturing cost 56,000.00 593,900.00 7 Selling and administrative expenses: 8 Variable $31,470.00 9 Fixed 26,225.00 57,695.00 Required: 1. Using the absorption costing concept, prepare income statements for (a) March and (b) April.* 2. Using the variable costing concept, prepare income statements for (a) March and (b) April.* 3a. Explain the reason for the differences in the amount of income from operations in (1) and (2) for March. 3b. Explain the reason for the differences in the amount of income from operations in (1) and (2) for April. 4. Based on your answers to (1) and (2), did Hip and Conscious Clothing Company operate more profitably in March or in April? * Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Less, Plus or colons (:) will automatically appear if required. If a net loss is incurred, enter that amount as a negative number using a minus sign.