Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31 Marshall Inc. estimated the following operating results Sales (20,800 x $73) Manufacturing costs (20,800 units) $1,518,400 Direct materials Direct labor Variable factory overhead Flxed factory overhead Fixed selling and administrative expenses Variable selling and administrative expenses 917,280 216,320 101,920 120,640 32,800 39,700 The company is evaluating a proposal to manufacture 23,200 units instead of 20,800 units, thus creating an Inventory, October 31 of 2,400 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. a. 1. Prepare an estimated income statement, comparing operating results if 20,800 and 23,200 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank or enter "O" Marshall Inc. Absorption Costing Income Statement For the Month Ending October 31 KPr PreviousNext Check My Work 5 more Check My Work uses remaining 4:06 PM 3/29/2019 25 99+ ea Show Me How Calculator Print Item eBook a. 1. Prepare an estimated income statement, comparing operating results if 20,800 and 23,200 units are manufactured in the absorption costing format. Itf an amount box does not require an entry leave it blank or enter "0" Marshall Inc Absorption Costing Income Statement For the Month Ending October 31 20,800 Units Manufactured 23,200 Units Manufactured Cost of goods sold: Income from operations a. 2 Prepare an estimated income statement, comparing operating results if 20 800 and 23,200 trits are n an fact nd amount box does not require an entry leave it blank or enter the vana le osting format-ran Check My Work 5 more Check My Work uses remaining Previous Next 4:07 PM 3/29/2019 25 eBook Show Me How Calculator Print tem a. 2. Prepare an estimated income statement, comparing operating results if 20,800 and 23,200 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank or enter "o" Marshall Inc. Variable Costing Income Statement For the Month Ending October 31 20, 800 Units Manufactured 23,200 Units Manufactured Variable cost of goods sold: Fixed costs: Check My Work 5 more Check My Work uses remaining Previous Next search 99+ 3/29/2019 25 Fxed costs: Total fixed costs b. What is the reason for the difference in income from operations reported for the two levels of production by the absorption costing income statement? V overhead cost over a The increase in income from operations under absorption costing is caused by the allocation of The difference can also be explained by the amount of number of units. Thus, the cost of goods sold is overhead cost included in the inventory Check My Work 5 more Check My Work uses remaining Previous Next Save and Exit Submit Assignment for Grading 4:07 PM /29/201925 earch 99+