During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 46,000 mini refrigerators, of which 42,000 were sold. Operating data for the month are summarized as follows: 1 Sales 2 Manufacturing costs: 3 Direct materials $3,220,000.00 $9,660,000.00 4 Direct labor 5 Variable manufacturing cost 1,380,000.00 828,000.00 6 Fixed manufacturing cost 506,000.00 5,934,000.00 7 Selling and administrative expenses: 8 Variable $756,000.00 9 Fixed 294,000.00 1,050,000.00 Required: 1. Prepare an income statement based on the absorption costing concept.* 2. Prepare an income statement based on the variable costing concept.* 3. Explain the reason for the difference in the amount of operating income reported in (1) and (2). * Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon () will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative.