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, 425 bikes were produced and 255 were sold; this left 170 bikes in ending inventory. The income statement information under variable costing follows. Sales (255 x $1,775) Variable product cost (255 x $625) Variable selling and administrative expenses (255 x $55) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $ 452,625 159,375 14,025 279, 225 80, 750 80,000 $ 118,475 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 Exercise 19-6 Absorption costing income statement LO P2 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, 425 bikes were produced and 255 were sold; this left 170 bikes in ending inventory. The income statement information under variable costing follows. Sales (255 x $1,775) Variable product cost (255 * $625) Variable selling and administrative expenses (255 x $55) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $ 452,625 159,375 14,025 279, 225 80,750 80,000 $ 118,475 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.