During its second year of operations, Grilling Machines, an entity that manufactures and sells electric tabletop grills, produced 275 000 units and sold 250 000 units at $60 per unit. The beginning inventory balance was 5000 units. No changes in fixed or variable costs occurred in the second year. The managers expected to sell 220 000 units, the same volume of manufacturing as last year. They set that amount as the normal capacity for allocating fixed overhead costs during the second year. For simplicity, assume that the budgeted fixed manufacturing overhead cost equals the actual cost this period. Also, assume that the entity uses the FIFO cost flow assumption. The following costs were incurred during the year.Please prepare income statements using absorption costing and variable costing and provide detailed calculations and explanation for each schedule of the income statement ? Reconcile the difference between operating incomes based on absorption costing and variable costing. Please provide a schedule to show detailed explanation and calculations for ease of understanding.? Suppose the accountant for Grilling Machines used an actual fixed overhead allocation rate rather than an estimated rate. Using the morbid of actual fixed overhead allocation rate please. calculate the cost of goods sold and ending inventory under absorption costing. And to compare the results to those calculated in part (a). ? If the volume variance is not material, how is it closed at the end of the period? Explain the reasoning behind this treatment for ease of understating.

Variable Cost per unit: $15.00 Direct Materials $10.00 Direct Labour $12.50 Manufacturing overhead $12.50 Selling and administrative $2.50 Total fixed costs: Manufacturing overhead $2,200,000 Selling and administrative $1,375,000