FAM13-A4 (similar to) Question Help Examine the Osborne Company's simplified income statement based on variable costing Assume that the budgeted volume for absorption costing in 20X0 and 20 was 1,420 units and that total fixed costs were identical in 20X0 and 20X1. There is no beginning or ending work in process (Click the icon to view the simplified income statement.) Requirements 1. Prepare an income statement based on absorption costing Assume that actual fixed costs were equal to budgeted fixed costs 2. Explain the difference in operating income between absorption costing and variable costing. Be specific For the Year Ended December 31, 20X1 Sales Operating income Data Table Year Ended December 31, 20X1 $ 15,480 $ 600 7,320 $ 7,920 180 Sales, 1,290 units at $12 Deduct variable costs Beginning inventory, 100 units at $6 Variable manufacturing cost of goods manufactured, 1,220 units at $6 Variable manufacturing cost of goods available for sale Ending inventory, 30 units at $6 Variable manufacturing cost of goods sold Variable selling and administrative expenses Total variable costs Contribution margin Deduct fixed costs Fixed factory overhead at budget $ 7,740 500 8,240 $ 7,240 $ 5,112 150 Fixed selling and administrative expenses 5,262 Total fixed costs $ 1.978 Operating income stor Print Done