Accelerate Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2020 are as follows:

The selling price per vehicle is $21,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 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.

	A	B	C
1		April	May
2	Unit data:
3	Beginning inventory	0	50
4	Production	600	575
5	Sales	550	595
6	Variable costs:
7	Manufacturing cost per unit produced	$11,500	$11,500
8	Operating (marketing) cost per unit sold	3,600	3,600
9	Fixed costs:
10	Manufacturing costs	$2,400,000	$2,400,000
11	Operating (marketing) costs	750,000	750,000

1.	Prepare April and May 2020 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.