Arizona Corp. has the following income statement under standard absorption costing AFTER disposing of variances:

Sales $$450,000$

Cost of Goods sold:

Standard cost of goods sold:

beg. inv. $ $0$

Production $$400,000$

ending inv. $$160,000$

Standard cost of goods sold: $$240,000$

Adjust for variances $0$

Adjusted Standard cost of goods sold: $$240,000$

Gross Profit $$210,000$

Selling and Admin. expenses

Variable selling and admin. $ $70,000$

Fixed selling and admin. $ $80,000$

Net income $ $60,000$

During the period Arizona produced $100,000$ units and sold $60,000$ units. Budgeted fixed factory overhead was $$120,000.$ Actual fixed factory overhead equaled budgeted fixed factory overhead, yet overhead was overapplied by $$80,000.$ There were no price, spending or efficiency variances, except for a direct labor price variance. Arizona corp. prorates variances based on ending account balances.

a$.$ Present a variable costing income statement.

b$.$ If Arizona Corp. does not prorate variances, what is net income under variable costing $($you do not need to calculate or present an income statement$).$