Chicago Screen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2017 are as follows:

(b). Prepare income statements for Chicago Screen in January, February, and March 2017 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. Abbreviation used; Adj. = Adjustment, Mfg. = Manufacturing.)

(c) Explain the difference in operating income for January, February, and March under variable costing and absorption costing.

January February March Unit data: 0 150 150 Beginning inventory Production 1,000 950 1,075 Sales 850 950 1,080 Variable costs: $ 850 $ 850 $ 850 $ 825 $ 825 $ 825 Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs $ 390,000 $ 390,000 $ 390,000 200,000 $ 200,000 $ 200,000 $ January 2017 February 2017 March 2017 Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Deduct ending inventory Adj. for production-volume variance Cost of goods sold Gross margin