Be sure to label variances for "adjustment for production-volume variance" and to show calculations.

April May Unit data: Beginning inventory 0 50 Production 700 600 Sales 650 610 Variable costs: 12,000 $ 12,000 Manufacturing cost per unit produced Operating (marketing) cost per unit sold 2,200 2,200 Fixed costs: Manufacturing costs $ 2,100,000 $ 2,100,000 725,000 725,000 Operating (marketing) costs The selling price per vehicle is $23,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 700 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. (b) Prepare April and May 2017 income statements for FastTrack 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 May 2017 Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Deduct ending inventory Adjustment for production-volume variance Cost of goods sold Gross margin