Estimated Income Statements, using Absorption and Variable Casting Prior to the first month of operations anding October 31 Marshall Inc, estimated the follow Sales (27,200 x 896) $2,611,200 Manufacturing costs (27,200 units) Direct materials 1,572,160 Direct labor 372,640 Variable factory overhead 114,000 Red factory overhead 206,720 Fixed selling and administrative expenses 50.200 Variable selling and administrative expenses 68,000 The company is evaluating a proposal to manufacture 30,400 units instead of 27.200 units, thus creating an inventory, October 31 of 3,200 units Manufacturing the additional units will not changes factory overhead costs, total fed factory overhead cost, or total selling and administrative expenses , wit variable Prepare an estimated income statement comparing operating results 27,200 and 30,400 units are manufactured in the absorption costing format. In amount box Marshalline Absorption Costing Income Statement For the Month Ending October 31 . 2. Prepare an estimated income sweet comparing operating results 27,200 and 30,400 are manufactured in the variable costing format fan amount bow does not require an entry leave it blank on Marshall Inc Variable Casting income statement For the Month Ending October 31 27,200 Units Manufactured 1,400 Un Manufactured Fundo Total costs b. What is the reason for the difference in income from operations reported for the two levels of production by the absorption income statement overhead cost over a umber of Thus, the cost of goods sold The increase in income from contine under absorption costing is caused by the location of The difference can be explained by the amount of nventory