Accelerate Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows:

The selling price per vehicle is $27,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 400 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.

April May Unit data: Beginning inventory Production 0 100 400 300 Sales 300 360 Variable costs: $ 11,000 $ 11,000 Manufacturing cost per unit produced Operating (marketing) cost per unit sold 2,200 2,200 Fixed costs: Manufacturing costs Operating (marketing) costs $ 2,200,000 $ 2,200,000 500,000 500,000 1. Prepare April and May 2017 income statements for Accelerate Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Requirement 1. Prepare April and May 2017 income statements for Accelerate Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2017 income statements for Accelerate Motors under variable costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Complete all answer boxes. Enter a "0" for any zero balance accounts.) May 2017 April 2017 $ 8,100,000 Revenues $ 9,720,000 $ 0 $ 1,100,000 3,300,000 4,400,000 4,400,000 (1,100,000) 4,400,000 (440,000) Variable cost of goods sold: Beginning inventory Variable manufacturing costs Cost of goods available for sale Deduct ending inventory Variable cost of goods sold Variable operating costs Contribution margin Fixed manufacturing costs Fixed operating costs 3,960,000 792,000 3,300,000 660,000 4,140,000 2,200,000 500,000 $ 1,440,000 4,968,000 2,200,000 500,000 $ 2,268,000 Operating income (b) Prepare April and May 2017 income statements for Accelerate Motors under absorption costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accounts. Label any variances as favorable (F) or unfavorable (U). If an account does not have a variance, do not select a label.) April 2017 $ 8,100,000 May 2017 $ 9,720,000 Revenues $ 0 4,400,000 2,200,000 3,300,000 2100000 Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Deduct ending inventory Variable manufacturing costs Gross margin Operating income 6,600,000 0