Prior Year Prior Year Current Current Year (Budget) (Actual) < Year (Budget) (Actual) Beginning Inventory (Units) Sales (Units) 0F 0F ? < ? < < 600,000 580,000 575,000 570,000 Manufactured (Units) < Selling Price ($/unit) < 600,000 590,000 640,000 610,000 9.99 9.90 9.95 10.00 < < Variable Manufacturing Cost ($/unit) < 4.92 Total Fixed Manufacturing Costs ($) 1,584,000 Variable Selling Cost ($/unit) 1.00 < Total Fixed SG&A Costs ($) 350,000 4.92 1,561,000 < 1.01 353,000 4.95 4.95 < 1,619,200 0.99 352,850 1,599,531 1.00 348,000 < < Other information: < The manufacturer uses FIFO (this is to make is easier to solve - weighted average would be a lot more difficult to solve) < The manufacturer uses Standard Costing < Required: < A. Prepare an income statement for the Current Year based on Variable Costing. < B. Prepare an income statement for the Current Year based on Absorption Costing. < C. Prepare a T-account that for Fixed Manufacturing Overhead based on Absorption costing that shows: actual costs, applied costs, rate variance and production volume variance (hint: this account should be at zero at year- end) < D. Reconcile the difference in Net Income between Variable Costing and Absorption Costing for the current year. (hint: compare this difference in income to the differences in ending inventory for Absorption Costing and Variable Costing).