Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells 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: Sales (8,000 units) $720,000 Production costs (10,000 units): Direct materials $333,000 Direct labor 160,000 Variable factory overhead 80,000 Fixed factory overhead 53,000 626,000 Selling and administrative expenses: Variable selling and administrative expenses $97,000 Fixed selling and administrative expenses 37,600 134,600 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31b. Prepare an income statement according to the variable costing concept. Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 Fixed costs: 49