Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 400 bikes were produced and 240 were sold; this left 160 bikes in ending inventory. The income statement information under variable costing follows. Sales (240 * $1,725) Variable product cost (240 * $600) Variable selling and administrative expenses (240 * $65) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $ 414,000 144,000 15,600 254,400 68,000 90,000 $ 96,400 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under absorption costing. KENZI KAYAKING Absorption Costing Income Statement $ 414,000 Sales Less: Cost of goods sold Variable product costs Fixed overhead costs $ 144,000 40,800 Cost of anods sold 184 8n Required 1 Required 2 Prepare an income statement for the current year under absorption costing. KENZI KAYAKING Absorption Costing Income Statement $ 414,000 Sales Less: Cost of goods sold Variable product costs Fixed overhead costs $ 144,000 40,800 184,800 229,200 Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses 90,000 15,600 Total selling general and administrative expenses Net income (loss) 105,600 123,600 $ Net income under absorption costing is higher than net income under variable costing by: 160 $ 170 Fixed overhead cost per unit Fixed costs added to inventory $ 27,200 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks: The dollar difference in variable costing income and absorption costing income = units fixed overhead per unit.