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Horace Company manulacturess a professional-grade vacuum cleaner and began openations in 2020 . For 2020, Horace budgeted to produce and sell 25 , o0o unes. The company had no price, speodhg, of eficiency variances and writes lut production-volume variance to cost of goods sold. Actual data for 2020 are given as folows: (Click the icon to viow the actual data for 2020. ) Pead the reauirements Requirement 1. Prepsre a 2020 income statement for Horice Company using variable cosing. Data table and sell 25,00 the appropriat Requirements 1. Prepare a 2020 income statement for Horace Company using variable costing. 2. Prepare a 2020 income statement for Horace Company using absorption costing 3. Explain the differences in operating incomes obtained in requirements 1 and 2. 4. Horace's management is considering implementing a bonus for the supervisors based on gross margin under absorption costing. What incentives will this bonus plan create for the supervisors? What modifications could Horace management make to improve such a plan? Explain briefly