Income Statements under Absorption and Variable Costing Shawnee Motors during the first month. The following data summarize the results for August: Sales (2,000 units) Production costs (2,400 units): Inc. assembles and sells snowmobile engines. The company began operations on August 1 and operated at 100 % of capacity s600,000 Direct materials Direct labor Variable factory overhead Fixed factory overhead s300,000 115,200 43,200 21,600 480,000 Selling and administrative expenses: Variable selling and administrative expenses $50,000 22,000 72,000 Fixed selling and administrative expenses a. Prepare an income statement according to the absorption costing concept. Shawnee Motors Inc. Absorption Costing Income Statement For the Month Ended August 31 Direct materials 125 Variable factory overhead 10:20 PM /29/2018