Instructions During the first month of operations ended May 31, Big Sky Creations Company produced 55.000 designer cowbay boots, of which 51,150 were sold. Operating data for the month are summarized as follows: 5895.125.00 1 Sales 2 Manufacturing costs 1 Direct materials 4 Direct labor 5401.500.00 137.500.00 60.500.00 5 Variable manufacturing cost 55.000.00 654.500.00 6 Fored manufacturing cost Selling and administrative expenses: $40.920.00 3 Variable 25.575.00 66.495.00 Fixed 9 Instructions During June, Big Sky Creations produced 47 300 designer cowboy boots and sold 51,150 Cowboy boots. Operating data for June are summarized as follows: $895.125.00 1 Sales 2 Manufacturing costs 3 Direct materials 3545.290.00 11.250.00 5203000 Direct labor 55,000.00 570.570.00 5 Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: 6 Variable 540,920.00 25.575.00 66295.00 Fibed Big Sky Creations Company Absorption Costing Income Statement (Label 1 2 Label 5 4 5 Absorption Costing Income Statement June Big Sky Creations Company Absorption Costing Income Statement (Label) 1 Label 3 Variable Costing Income Statement May Big Sky Creations Company Variable Costing Income Statement (Label) 1 2 flabel) 1 Label 10 11 12 Variable Costing Income Statement June Love 1 2 (Label) 3 4 5 6 > 7 I 9 Label 10 11 15 Vall LUS det Final Questions 30. Explain the reason for the differences in operating income in (1) and (2) for May. For May, Operating income reported under costing exceeds that reported under costing due to part of manufacturing costs that are expensed on the costing income statement, but not on the income statement costing 3b. Explain the reason for the differences in operating income in (t) and (2) for June For June, Operating income reported under costing is less than that reported under costing due to part of manufacturing costs from May that are expensed on the costing income statement but not on the costing income statement 4. Based on your answers to (1) and (2), did Big Sky Creations Company operate more profitably in May or in June? Explain Big Sky Creations Company was under the viable costing concept. The diference in operating valore income reported under the absorption costing concept is due to allocating to the