Okanagan Products manufactures Ogo Pogos, a line of stuffed toys. Variable manu- facturing overhead is applied at the rate of $1.60 per labor-hour, and fixed manufac- turing overhead at a rate of $2.00 per labor-hour. Actual costs were as follows: Direct materials .$ 50,000 Direct labor (at $4.20 per hour)... 126,000 Actual variable manufacturing overhead .... 52,000 Variable marketing and administrative costs 45,000 Actual fixed manufacturing overhead .. 58,000 Fixed marketing and administrative costs ... 28,000 During the period, 25.000 units were produced, and 23,800 units were sold at a selling price of $20 each. There were no beginning inventories. Assume that Okanagan Products debits or credits under- or overapplied overhead to Cost of Goods Sold. a. Prepare an income statement for the period, using variable costing. b. Prepare an income statement for the period, using full-absorption costing