Estimated Income Statements, using Absorption and Variable Cocina Prior to the first month of operations ending October 31, Marshalt the estimated the following operating results Sales (19,200 x 568) $1,105,600 Manufacturing costs (19,200 units) Direct materials 787,200 Direct labor 166,240 Variable factory overhead 36,400 Fixed factory overhead 103,680 Fixed selling and administrative expenses 28,200 Variable selling and administrative expenses 34.100 The company is evaluating a proposal to manufacture 21,600 units instead of 19,200 units, thus creating an ending inventory of 2,400 units. Hatutacturing the additional units will not change sales, unit variable factory overbead costs, total flwed factory overhead cost, or total saling and administrative expenses a 1. Prepare an estimated income statement, comparing operating results if 19,200 and 21,600 unts are manufactured in the absorption costing formati dan amount toe die not require an entry leave it blank Marshall Inc Absorption Costing Income Statement For the Month Ending October 31 19,200 Units Manufactured 21,600 Units Manufactured Cost of goods sold 11 a. 1. Prepare an estimated Income statement, comparing operating results if 19,200 and 21,600 units are manufactured in the absorption costing format fan amount box does not require an entry leave it blank Marshall Inc. Absorption Costing Income Statement For the Month Ending October 31 19,200 Units Manufactured 21,600 Units Manufactured Cost of goods sold: ibini 000000 a. 2. Prepare an estimated income statement, comparing operating results if 19.200 and 21,500 units are manufactured in the variable costing format. If an amount or does not require an entry leave it blank Marshall Inc Variable Costing Income Statement For the Month Ending October 31 19,200 Units Manufactured 21,600 Units Manufactured Variable cost of goods sold bin niin on bini ibini Fixed costs Totaled costs b. What is the reason for the difference in operating income reported for the two levels of production by the absorption costing statement? The increase in income from operation under stortion costing is caused by the ved cost over the cost of goods sold is The ofference can also be explained by the amount second the ventory number of units. Thus