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 $30,000. 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. Requirements x Cost of goods available for sale Deduct ending inventory 6,300,000 (1,050,000) 6,300,000 (262,500) Variable cost of goods sold 5,250,000 6,037,500 Variable operating costs 1,100,000 1,265,000 Contribution margin 8,650,000 9,947,500 Fixed manufacturing costs 2,250,000 2,250,000 Fixed operating costs 800,000 800,000 Operating income $ 5,600,000 $ 6,897,500 1. Prepare April and May 2017 income statements for FastTrack Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Print Done (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: Beginning inventory Variable manufacturing costs Fixed manufacturing costs Cost of goods available for sale Deduct ending inventory Allocated fixed manufacturing costs Cost of goods sold Gross margin ges Get more help April 2017 15000000 May 2017 17250000 Data table April May Unit data: Beginning inventory Production Sales 0 100 600 500 500 575 Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: 10,500 $ 10,500 2,200 2,200 Manufacturing costs $ 2,250,000 $ 2,250,000 Operating (marketing) costs 800,000 - X 800,000 Clear all Check answer