Given the following information: Prior Year (Budget) Prior Year (Actual) Current Current Year Year (Actual) (Budget) Beginning Inventory (Units) 0 0 ? ? Sales (Units) 600,000 585,000 575,000 571,000 Manufactured (Units) 610,000 590,000 640,000 620,000 Selling Price ($/unit) 9.99 9.90 9.98 10.00 Variable Manufacturing Cost ($/unit) 4.92 4.93 4.96 4.96 Total Fixed Manufacturing Costs ($) 1,592,100 1,582,204 1,670,400 1,599,531 Variable Selling Cost ($/unit) 1.00 Total Fixed SG&A Costs ($) 350,000 1.01 353,010 0.99 1.01 352,850 358,000 Other information: The manufacturer uses FIFO (this is to make is easier to solve -weighted average would be a lot more difficult to solve) The manufacturer uses Standard Costing Required: A. Prepare an income statement for the Current Year based on Variable Costing for the current year. B. Prepare an income statement for the Current Year based on Absorption Costing for the current year. C. Prepare a T-account for the Fixed Manufacturing Overhead for the current year based on Absorption costing that shows: actual costs, applied costs, rate variance and production volume variance (hint: this account should be at zero at year-end) D. Reconcile the difference in Net Income between Variable Costing and Absorption Costing for the current year. (hint: compare this difference in income to the differences in ending inventories for Absorption Costing and Variable Costing).