Expensive Text Company manufactures Cost Accounting textbooks for advanced accounting classes. The supervisor has provided the following information and stated that standard costing is used for manufacturing, marketing, and administrative costs:

	January, 2022
Finished Goods Beginning inventory	0
Production	2,500
Sales	2,300

Other information:
Selling price	$240.00
Standard variable DM cost/unit	$15.00
Standard variable DML cost/unit	$20.00
Standard variable VMOH cost/unit	$10.00
Standard variable market/admin. cost/unit sold	$40.00
Standard fixed manufacturing overhead cost/month	$120,000
Standard fixed market/admin. cost/month	$120,000
Budgeted denominator level per month (output units)	3,000

The Expensive Text Company operating income (loss) be for January using the absorption costing approach is as follows:

Required: In the space provided below, or on the provided Spreadsheet, reconcile Expensive Text Company's Variable Operating Income for January with Expensive Text Company's Absorption Costing Operating Income for January.

If you are using the provided Excel Spreadsheet, make sure to attach the final Excel spreadsheet with all of the answers to one of the questions in the exam.