Chataqua Can Company manufactures metal cans used in the food-processing industry A case of cans sells for $30. The variable costs of production for one case of cans are as follows s 6.5e 4.8e birect naterial Direct Jabor variable sanufacturing overhead $15.5 Total variable manufacturing cost per case Variable seling and administrative costs amount to $0.60 per case. Budgeted fixed manufacturing overhead is $ fixed selling and administrative Year1 Year 2 Year 3 23,see 92,7sa 81,698 81,8 81,8 Planned production (in units) indshed-goods inventory (in units), January1 Actual production (in units) sales (in unsts 81,9 81,80081,8 81,eee 57,see e 23,5ee 11,75 inished-goods inventory (in units), December s1 Actual costs were the same as the budgeted costs Required: 1 Prepare operating income statements for Chataqua Can Company for its first three years of operations using: a. Absorption costing b Variable costing years of operation, Use the shortcut method and the company ends the year with no inventory on hand a. what will be the difference between absorption-costing income and variable-costing income in year 4? 2 Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three 3. Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected b wnat wil be the relationship between total opereting income for the four-year period as reported under absorption and variable costing? Complete this question by entering your answers in the tabs below Prepare operating income statements for Chataqua Can Company for its first three years of operations using absorption costing- ess Cost of goods sold 607 5005 1.725 000S 2.782 500 and Admministrative Expenses Varable seling and administrative Seling 607 500S 1,725.000 82 500 Req 38 Prepare operating income statements for Chataqua Can Company for its first three years of operations using variable costing Variable expenses Fxed expense Req 1AReg 18 Rd 2 Reg 3AReq Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method Ofference in fxed Change in inventoryPredetermined fxedoverhead expensed overmead rate n units under absorption and varable costing