Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: Sales (10,500 units) $1,680,000 Production costs (14,000 units): Direct materials $828,800 Direct labor 397,600 Variable factory overhead 198,800 Fixed factory overhead 133,000 1,558,200 Selling and administrative expenses: Variable selling and administrative expenses $241,500