and van Osung Gallatin County Motors Inc, assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (14,500 units) $1,740,000 Production costs (19,000 units): Direct materials $843.600 Direct labor 404,700 Variable factory overhead 203/300 Fixed factory overhead 134 900 1,586,500 Selling and administrative expenses! Variable selling and administrative expenses $245,900 Fixed selling and administrative expenses 95,200 341 100 If required, round interim per unit calculations to the nearest cent. ws a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales 1.740,000 A Cost of goods sold Gross profit Selling and administrative expenses Operating income edback b. Prepare an income statement according to the variable costing concept. Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 Sales Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses DOI Contribution margin Fixed costs: Fixed factory overhead costs Fixed selling and administrative expenses Total fixed costs Operating income Feedback Check My Work b. Under variable costing, the cost of goods manufactured includes only variable manufactu