Can you help me solve and compute the values on part b of Requirement 1 and Requirement 2, please? Can you show me the step by step work, too, please?

Champion Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows: 5 Click the icon to view the data.) The selling price per vehicle is $30,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 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. Read the requirements. i Data Table April May 0 100 450 500 400 520 Unit data: Beginning inventory Production Sales Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs $ 9,500 $ 3,800 9,500 3,800 $ 2,250,000 $ 2,250,000 500,000 500,000 i Requirements 1. Prepare April and May 2017 income statements for Champion 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 Champion Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2017 income statements for Champion 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.) April 2017 $ 12,000,000 May 2017 $ 15,600,000 4,750,000 $ 950,000 4,275,000 5,225,000 (285,000) 4,750,000 (950,000) Revenues 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 Operating income 3,800,000 1,520,000 6,680,000 2,250,000 500,000 $ 3,930.000 4.940,000 1,976,000 8,684,000 2.250,000 500,000 $ 5,934,000 Fantastic! (b) Prepare April and May 2017 income statements for Champion 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.) (b.). Prepare-April-and-May-2017-income statements for Champion-Motors under-absorption costing. I 1 April 2017:1 1 SO-is the dollar value for the-O-number of vehicles representing Beginning-Inventory and/or at the beginning balance of Work-in-Process-Inventory. I Total-Variable Manufacturing Costs:f *$9.500 Variable (Manufacturing cost per vehicle produced) *500 units of budgeted (planned) production of vehicles and/or produced vehicles available at ending balance-of-Inventory in April-2017 1 =-$9,500-x-500 units of budgeted (planned) production of vehicles and/or produced-vehicles available at ending balance of Inventory in April 2017 1 = $4,750,000. Completed $4.750,000 is the Total Variable-Manufacturing Cost. I From out decision above, we know that absorption costing is a method of inventory costing in which-all variable manufacturing costs (variable costs) and all fixed manufacturing costs- (fixed costs) are included-as-inventoriable costs. --Therefore, our calculation related to cost of goods sold will include fixed-manufacturing costs (fixed costs) as well-as variable. --In addition, to the typical cost of goods sold formula, the income statement will contain an adjustment for the production volume variance. --This variance occurs when the company produced-less than it had budgeted. --We are told that the company used a production level of 500-cars to budget its cost. --If the company produced-less than 500 we will have a variance (as-in- May), if the company produced at the level (as in-April) we will not have a variance (difference). I Before preparing the income statements we need to calculate the budgeted (planned) fixed manufacturing cost per unit.--This is the amount of fixed manufacturing costs (expenses) that: we will allocate to each unit produced. Let's calculate the fixed manufacturing cost per unit now.[ 1 Budgeted-fixed manufacturing (mfg) cost per unit:Formula Budgeted fixed manufacturing costs, Budgeted production =Budgeted fixed manufacturing (mfg) cost per unit $2,250,000 Budgeted fixed manufacturing costs 500 Budgeted production = $4,500. Completed =-$4,500 is Budgeted fixed manufacturing (mfg) cost per unit.[ I will need to allocate (assign, apply) the budgeted-(planned) fixed manufacturing costs to the units you produced. --Let's do this for both April now: 1 Allocated fixed manufacturing costs-Formula 1 = Budgeted fixed manufacturing cost per unit-x-Units produced =-Allocated fixed manufacturing costs = $4,500-x-500 units produced [500 units produced From Data Table] = $2,250,000. Completed ($2,250,000 -is fixed manufacturing costs that are allocated. May-2017:1 Total-Variable Manufacturing Costs: *$9,500 Variable (Manufacturing cost per vehicles produced) *450 units of budgeted (planned) production of vehicles and/or produced vehicles available at: ending balance of Inventory-in-April 1 =-$9.500-x-450 units of budgeted-(planned) production of vehicles and/or produced vehicles available at ending balance of Inventory in April 1 =-54,275,000- Completed 1 $4,275,000 is the Total Variable-Manufacturing Cost.[ Before preparing the income statements we need to calculate the budgeted (planned) fixed manufacturing cost per unit.--This is the amount of fixed manufacturing costs-(expenses) that we will allocate to each unit produced. 1 Let's calculate the fixed manufacturing cost per unit now.[ 1 Budgeted-fixed manufacturing (mfg) cost per unit Formula 1 Budgeted fixed manufacturing costs, Budgeted production =Budgeted-fixed manufacturing (mfg) cost per unit $2,250,000 Budgeted fixed manufacturing costs 500 Budgeted production =$5.000- Completed 1 =-$5,000 -is Budgeted fixed manufacturing (mfg) cost per unit I will need to allocate (assign, apply) the budgeted-(planned) fixed manufacturing costs to the units you produced. --Let's do this for May now: Allocated fixed manufacturing costs-Formula =-Budgeted-fixed manufacturing cost per unit x-Units produced =-Allocated-fixed manufacturing costs 1 =-$5,000-x-375-[375 units produced From-Data-Table] 1 =-$1.875,000- Completed 1 $1.875,000 -is fixed manufacturing costs that are allocated. I 1 Prepare-April-and-May-2017-Income statements for Champion-Motors under absorption costing. Complete the top half of the income statement for each month first. --Your revenues and variable manufacturing costs"(variable costs) will not change from the statement above. I 1 Remember, under absorption costing the units in-ending inventory will have both fixed-and- variable costs allocated. The production volume variance is the difference between the total- fixed costs and the allocated fixed costs. --If the allocated fixed costs are less, it is an unfavorable variance and is added to the cost of goods sold. --If the allocated costs are more, -it- is a favorable variance and reduces cost of goods sold. (Enter a-"0" for any zero-balance accounts. --If an account does not have a variance, do not select-a-label.)