FastTrack Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows: (Click the icon to view the data.) The selling price per vehicle is $28,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Read the requirements. Data table Unit data: Beginning inventory Production Sales Variable costs: April May variable costing and (b) absorption costing. Requirements 0 150 600 500 1. Prepare April and May 2017 income statements for FastTrack Motors under (a) variable costing and (b) absorption costing. 450 630 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Manufacturing cost per unit produced $ 8,000 $ 8,000 Operating (marketing) cost per unit sold 3,600 3,600 Fixed costs: Manufacturing costs Operating (marketing) costs $ 2,400,000 $ 2,400,000 800,000 800,000 Print Done Print Done Xtion. (Complete all answer boxes. Enter a "0" for any zero balance Clear all Check answer Requirement 1. Prepare April and May 2017 income statements for FastTrack Motors under (a) variable costing and (b) absorption costing.. (Complete all answer boxes. Enter a "0" for any zero balance accounts.) Revenues Variable cost of goods sold: Beginning inventory Variable manufacturing costs Cost of goods available for sale Deduct ending inventory Variable cost of goods sold Variable operating costs Contribution margin Fixed manufacturing costs Fixed operating costs Operating income April 2017 May 2017 (b) Prepare April and May 2017 income statements for FastTrack Motors under absorption costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accounts. Label any variances as favorable (F) or unfavorable (U). If an account does not have a variance, do not select a label.) Revenues Cost of goods sold: April 2017 Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Deduct ending inventory Adjustment for production-volume variance Cost of goods sold Gross margin Variable operating costs Fixed operating costs Operating income May 2017 D Requirement 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Begin by determining the formula that will highlight the difference between the operating income under each method. Then complete the equation for each month. (Abbreviations used: Beg. = Beginning. End. - Ending. Var. = Variable, Mfg = Manufacturing. Complete all answer boxes. Enter a "0" for any zero balance accounts.) Apr May Absorption- costing operating income Variable-costing operating income Fixed mfg costs in end. inventory Fixed mfg costs in beg. inventory