Google Boutique has the following summary absorption costing income statement for 2015:

Sales $1,320,000

Less: COGS 900,000

Plus: underapplied Fixed OH 10,000

Adjusted COGS 910,000

Gross Margin 410,000

Less: S&A costs 280,000

Income before taxes $130,000

Additionally,

• The unit sales price for 2015 was $44.

• 30,000 units were sold.

• Variable S&A cost per unit for 2015 was $6.

• Allocated Fixed Manufacturing overhead cost for 2015 was $128,000.

• Variable manufacturing cost per unit was $26 per unit.

• Total manufacturing cost per unit was $30 per unit.

• 2015 Beginning Inventory= 0 units and Ending Inventory =2,000 units.

Required:

1. Prepare a detailed variable costing income statement for Google Boutique for 2015.

2. Reconcile the income differences.