Gleason Manufacturing manufactures a single product. Cost, sales, and production information for the company and its single product is as follows: (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare an income statement for the upcoming year using variable costing. Gleason Manufacturing Contribution Margin Income Statement (Variable Costing) For the Year Ended December 31 Less: Less: Requirement 2. Prepare an income statement for the upcoming year using absorption costing Gleason Manufacturing Income Statement(Absorption Costing For the Year Ended December 31 Less: Less Requirement 3. What causes the difference in income between the two methods? When inventory levels operating income will be greater under absorption costing than it is under variable costing. This is because under fed MOH is expensed immediately as a period cost operating expense). Under feed MOH becomes part of the inventoriable cost of the product, which isn't expensed (as Cost of Goods Sold) unt the inventory is sold, leaving a higher operating income due to less being experied . Sales price per unit $47 Variable manufacturing costs per unit manufactured (DM, DL and variable MOH) $23 Variable operating expenses per unit sold $1 Fixed manufacturing overhead (MOH) in total for the year $322,000 Fixed operating expenses in total for the year $47,000 Units manufactured during the year 23,000 units Units sold during the year 18,000 units