Huntington Manufacturing manufactures a single product that it will sell for $85 per unit. The company is looking to project its operating income for its first two years of operations. Cost information for the single unit of its product is as follows: (Click the icon to view the data.) During its first year of operations, the company plans to manufacture 23,000 units and anticipates selling 15,000 of those units. During the second year of its operations; the company plans to manufacture 23,000 units and anticipates selling 24,000 units (it has units in beginning inventory for the second year from its first year of operations). Read the requirements. Direct material per unit produced $37 Direct labor cost per unit produced $14 Variable manufacturing overhead (MOH) per unit produced $4 Variable operating expenses per unit sold $2 Fixed manufacturing overhead (MOH) for each year is $230,000, while fixed operating expenses for each year will be $88,000. Requirement 1. Prepare an absorption costing income statement for (a) the first year of operations and (b) the second year of operations Huntington Manufacturing Income Statement (Absorption Costing) (a) Year 1 (b) Year 2 Less: Less: Requirement 2. Before you prepare the variable costing income statements for Huntington, predict the company's operating income using variable costing for both first year and its second year without preparing the variable costing income statements in Calculate the variable costing operating income for a given year by taking that year's absorption costing operating income and adding or subtracting the deference in operating income calculated using the following formula: Difference in operating income (Change in inventory level in its x Fixed MOH per und Begin by calculating the difference in income each year using the formula provided Change in inventory Diference in Year level in units operating income Now predict Huntington's operating income under variable costing for both its first year and its second year of operations Operating income under variable costing Year Less: Huntington Manufacturing manufactures a single product that it will sell for $85 per unit. The company is looking to project its operating income for its first two years of operations. Cost information for the single unit of its product is as follows: (Click the icon to view the data.) During its first year of operations, the company plans to manufacture 23,000 units and anticipates selling 15,000 of those units. During the second year of its operations; the company plans to manufacture 23,000 units and anticipates selling 24,000 units (it has units in beginning inventory for the second year from its first year of operations). Read the requirements. Direct material per unit produced $37 Direct labor cost per unit produced $14 Variable manufacturing overhead (MOH) per unit produced $4 Variable operating expenses per unit sold $2 Fixed manufacturing overhead (MOH) for each year is $230,000, while fixed operating expenses for each year will be $88,000. Requirement 1. Prepare an absorption costing income statement for (a) the first year of operations and (b) the second year of operations Huntington Manufacturing Income Statement (Absorption Costing) (a) Year 1 (b) Year 2 Less: Less: Requirement 2. Before you prepare the variable costing income statements for Huntington, predict the company's operating income using variable costing for both first year and its second year without preparing the variable costing income statements in Calculate the variable costing operating income for a given year by taking that year's absorption costing operating income and adding or subtracting the deference in operating income calculated using the following formula: Difference in operating income (Change in inventory level in its x Fixed MOH per und Begin by calculating the difference in income each year using the formula provided Change in inventory Diference in Year level in units operating income Now predict Huntington's operating income under variable costing for both its first year and its second year of operations Operating income under variable costing Year Less