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b. Reconcle the absorption costing income from operations of $320,500 with the variable costing income from operations determined in (a). Reconcliation of Absorption and Variable Costing Income Variable Costing Income statement On July 31, 2016, the end of the first month of operations, Holton Company prepared the following income statement, based on the absorption costiog conceps: a. Prepare a varlable costing income statement, assuming that the fixed manufacturing costs were $32,000 and the variable seling and administrative expenses were \$23,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar