Harper Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling Price $110.00 Beginning Inventory 400 Units Production 8800 Units Sold 8900 Units Variable costs per unit Direct materials $34.00 Direct labour $37.00 Variable manufacturing overhead $3.00 Variable selling and admin $9.00 Fixed Costs Manufacturing $62,600 Selling and admin $169,100 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

(5 marks) Prepare an income statement using variable costing

(3 marks) Prepare a reconciliation from your Variable Costing Operating Income to compute Operating Income under absorption costing.

(3 marks) Explain in words and using your results from b, why the two net incomes are different