Prior to the first month of operations ending October $31,$ Marshall Inc. estimated the following operating results:

Sales $(15,200$ x $$53)$ $$805,600$

Manufacturing costs $(15,200$ units$)$:

Direct materials $484,880$

Direct labor $115,520$

Variable factory overhead $53,200$

Fixed factory overhead $63,840$

Fixed selling and administrative expenses $17,400$

Variable selling and administrative expenses $21,000$

The company is evaluating a proposal to manufacture $16,800$ units instead of $15,200$ units, thus creating an ending inventory of $1,600$ units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses.

Question Content Area

a$.1.$ Prepare an estimated income statement, comparing operating results if $15,200$ and $16,800$ units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank.

a$.2.$ Prepare an estimated income statement, comparing operating results if $15,200$ and $16,800$ units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank.