Income Statements under Absorptior Costirg and \\\"arieble 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 (13,000 units) $1,820,000 Production costs (17,000 units): Direct materials $880,600 Direct labor 423,300 Variable fEC'IOW overhead 210,800 b. Prepare an income statement according to the variable costing concept. Fixed factory overhead 141,100 1,655,800 Gallatin County Motors Inc. Variable Costing Income Statement Selling and administrative expenses: For the Month Ended July 31 Variable selling and administrative expenses $256,600 Sales 7 J V 99 300 ) FIXECl selling and administrative expenses . 355350 Variable cost of goods sold . ,/ Manufacturing margin V J 5 If required, round interim perfunit calculat ms to the nearest cent. Variable sellinq and administrative expenses V J a. Prepare an income statement according to the absorption costing concept. _ _ _ ' Contribution margin V V/ S Gallatin County Motors Inc. . ' Absorption Costing Income Statement Fixed COStSl For the Month Ended July 31 Fixed factory overhead costs V J Sales V J $ FIXEL'l selling and administrative ex genses V J 4' Cost Of 0005 SDld J Total fixed costs V J Gross profit V J Operating income V J Selling and administiative expenses V J Operating income V w/