Estimated become Statements, using Absciption and Vanable Costing Prict to the fest month of eperations ending October 31, Marshall Inc. estimated the following operwing resus Sales (13,600 x $48) $652,000 Manufacturing coats (13,600 units): Drect material 393,040 Direct labor 92,400 Vable factory overhead 43,520 Fisfactory overhead 51,600 Find selling and admistrative expenses Vanable selling and adminstrative senses 14,100 17,000 The company a evaluating a proposal to manufacture 15,200 uns instead of 13,600 in das oratogeendig evenery of 1,000 ust. Minusering te sodbenal units will not change sale in verbin factory ove total fixed factory overhead cost, or total seling and administrative expenses a. 1. Prepare an estimated income statement, comparing opening resuar 13,500 d 200 mod habeat an amoum box does s Marshall Inc. Absorption Costing tacome Statement For the Month Ending October 31 11,600 Units Hanufactured 15,200 thaits Manufactured List of goods sold 1000 Previous Variabin cost of goods sold Fixed cost Total fixed costs 0000 Variable Casting Income Statement For the Month Ending October 31 13,600 Units Manufactured 0000 0000000: 15,200 Units Manufactured b. What is the reason for the afference in operating income reported for the two levels of producten by the absorpton costing income statement? The esse in income from operations under absorpoon coating is caused by the alocation of The defence can also be explained by the amount of L verhead cost over a overhead cost hududed the number of units. Thus, the cost of gods soddis ventory 0000 4. 2. Prepare an estimated income statement, compering operating results if 13,600 and $5,200 units are manufactured in the variable costing format. an armount box does not require an entry kurve bank Marshall Inc. Variable Costing Income Statement For the Honth Ending October 31 13,600 Units Manufactured 15,200 Units Manufactured Versble cost of goods sold ixed cost 00 10000000 00