Huntley Company reported the following results for their first three years in business: Units Sold Selling Price Per Unit Units Produced Year 1 Year 2 Year 3 800 1,030 1,055 $54 $56 $57 900 1,200 1,100 ACTUAL PRODUCTION COSTS Material Used $10,000 $14,000 $13,300 Labor Incurred Variable Overhead 3,000 4,400 4,000 400 550 540 Fixed Overhead 26,000 26,000 26,300 ACTUAL PERIOD COSTS Variable Selling Expenses Fixed Selling Expense Variable Administrative Expenses Fixed Administrative Expenses 2,900 3,400 3,500 1,600 1,580 1,650 1,300 1,650 1,800 5,000 5,100 5,020 Instructions: Round the cost per unit to TWO decimals in all cases below. A. Assuming that Huntley Company was using FIFO inventory system and actual variable costing, prepare the income statement for Years 1, 2, and 3 in side by side columns. B. Assuming that Huntley Company was using FIFO inventory system and actual ABSORPTION costing, prepare the income statement for Years 1, 2, and 3 in side by side columns. C. Reconcile the difference between the Income Before Tax in part A versus Income Before Tax in part B for each year.