Lehighton Chalk Company manufactures sidewalk chalk, which it sells online by the case at $25 per unit. Lehighton uses an actual costing system, which means that the actual costs of direct material, direct labor, and manufacturing overhead are entered into work-in-process inventory. The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Lehighton's first two years of operation is as follows: Selected information from Lehighton's yeat-end balance sheets for its first two years of operation is as follows: 1. Reconcile Lehighton's operating income reported under absorption and variable costing, during each year, by comparing the following two amounts on each income statement: - Cost of goods sold - Fixed cost (expensed as a period expense) 2. What was Lehighton's total operating income across both years under absorption costing and under variable costing? 3. What was the total sales revenue across both years under absorption costing and under varlable costing? 4. What was the total of all costs expensed on the operating income stotements across both years tinder absorption costing and under variable costing? 5. Subtract the total costs expensed across both years (requirement 4) from the total sales revenue across both years (requirement 3); (a) under absorption costing and (b) under varlable costing. 6. Considering the results obtained in requirements 15 above, cvaluate the following statements. Complete this question by entering your answers in the tabs below. Reconcile Lehighton's operating income reported under absorption and variable costing, during each year, by camparing Reconcthe Leinightowis operoting incothe reported umber atg two amounts on each income statement: - Cest of goods sold - Fixed cost (expersed as a period expense) Complete this question by entering your answers in the tabs below. What was Lehighton's total operating income across both years under absorption costing and under variable costing? Complete this question by entering your answers in the tabs below. What was the total sales revenue across both years under absorption costing and under variable costing? Complete this question by entering your answers in the tabs below. What was the total of all costs expensed on the operating income statements across both years under absorption costin under variable costing? Complete this question by entering your answers in the tabs below. Considering the results obtained in requirements 1-5 above, evaluate the following statements. Noter Select "Yes" if the statement is true, and "No" if it is not. Sales revenue is different depending on the costing method used. When the number of units produced equals the number of units sold, total costs expensed wil be the same under both costing methods. Since Lohighton'i combined operating income, across the two-year period, is the tiame under both abiorption and variable conting. then the operatirg income must be the same within each year under both methods The difference between absorption and varible costing is caused by the timing with which expenses are recognized