QUESTION 1A Johanna Stores produce and sell sunscreen powder called the 'Protect' in cases. Each case is sold for $80. The following information relates to the product in the first and second quarter of 2022. Variable administrative expenses are 10% of sales value Fixed administrative expenses are 25% of sales value The budgeted production capacity for the year is 176,400 cases to be produced evenly throughout the year with a budgeted cost of $705,600. Assume that there will be no inventory held on January 1, 2022. Required: (1) Prepare profit statement for each of the two quarters using absorption and variable costing techniques. (2) Compute and reconcile the differences in the operating incomes of both techniques. (3) Comment on the differences in the operating income between both techniques