ACC-132 Principles of Accounting II Chapter 21 - Web Class Name: During the first month of operations ended September 30, Zap Electronics Inc. manufactured 7,400 modems, of which 6,950 were sold. Operating data for the month are summarized as follows: Sales Manufacturing Costs: $ 764,500 Direct materials $362,600 Direct labor 111,000 Variable factory overhead 96,200 Fixed factory overhead 48,100 617,900 Selling and administrative expenses: Variable ($8.50 per unit sold) $ 59,075 Fixed 27,800 86,875 Instructions: 1. Prepare an income statement based on the absorption costing concept. 2. Prepare an income statement based on the variable costing concept. 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2).