Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month The following data summarize the results for July: Sales (17,500 units) $1,925,000 Production costs (23,000 units): Direct materials $936,100 Direct labor 448,500 Variable factory overhead 225,400 Fixed factory overhead 149,500 1,759,500 Selling and administrative expenses: Variable selling and administrative expenses $272,700 Fixed selling and administrative expenses 105,600 378,300 1,759,500 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept, Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Previous Next Check My Work 5 more Check My Works remaining Email instructor Save and Ext Submit Assignment for Grading b. Prepare an income statement according to the variable costing concept. Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 Fixed costs: absorption costing c. What variable costing rerence in the amount of operating Income reported in (a) and (b)? Under the method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases, the Income statement will have a higher operating income