point(by possibile Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2020 are as follows: (Click the icon to view the data) The selling price per vehicle is $24,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Read the requirements. Requirement 1. Prepare April and May 2020 income statements for Nascar Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for Nascar Motors under variable costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Complete all input fields. Enter a "0" for any zero balance accounts.) Revenues Variable cost of goods sold: April 2020 May 2020 Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2020 are as follows: Click the icon to view the data.) The selling price per vehicle is $24,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Read the requirements (b) Prepare April and May 2020 income statements for Nascar Motors under absorption costing Complete the top half of the income statement for each month first, then complete the bottom portion (Enter a "D" for any zero balance accounts. Label any variances as favorable (F) or unfavorable (U). If an account does not have a variance, do not select a label) April 2020 May 2020 [ e Help: Gradebook pts Score 12 see score 12 past due 12 see score see score Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2020 are as follows: (Click the icon to view the data.) The selling price per vehicle is $24,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Read the requirements. C Requirement 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Begin by determining the formula that will highlight the difference between the operating income under each method. Then complete the equation for each month. (Abbreviations used: Beg. Beginning. End. Ending, Var. Variable, Mig- Manufacturing. Complete all answer boxes. Enter a "0" for any zero balance accounts.) Absorption-costing operating income Variable-costing operating income Apr May The difference between absorption and variable costing is due solely to moving) out of inventories as they into inventories as inventories and er vehicle is : spending va ents. nit is 500 units. There are no 15. 1 B April May 2 Unit data: 3 Beginning inventory 4 Production 5 Sales 0 150 500 400 350 520 C bts 2 6 Variable costs: f21 7 Manufacturing cost per unit produced $ 10,000 $ 10,000 repare a nun ariable costing and 8 Operating (marketing) cost per unit sold 3,000 3,000 f2 ing the formu 9 Fixed costs: equation for each month. ed: Beg. Be 10 Manufacturing costs $ 2,000,000 $ 2,000,000 any zero balance 11 Operating (marketing) costs 600,000 600,000 -costing income Print Done