income statements under absorption and variable costing Gallatin County Motors Inc. assembles and selis snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: This itformation has been collected in the Microsoft Excel Online fie. Open the spreadsheet, perform the required analysis, and input your ansiners in the questions below Open spresdsheet a. Prepare an income statement according to the absorption costing concept: o. Prepare an incorne statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement b. Prepare an income statement according to the variable costing concept. b. Prepare on income statement according to the variable casting concept. C. What is the reason for the differnoce in the omount of Operating income reported in (a) and (b) ? Unaer the methed, the ficed manufacturng cest included in the cost of gosds sold is mstched with the revenuet. Under of the fixed mantafacturing cost is deducted in the peripd in which it is incurred, regardess of the amount of inventary change. Thus, whien aventory inciesta, the income statement wit have a higher Operating ingerte than will the varable costing incone staternent