Question 1-Inventory Costing and Capacity Analysis Nascar Motors assembles and sells motor vehicles, and uses standard costing. Actual data relating to April and May 2017 are as follows: Home InsertPage Data Review 2 Unit data: 150 400 5 Sales 6 Variable costs 10 10,000 3,000 cost per unit cost per unit sold 9 Fixed costs 000,000 600,000 costs 600 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. Required: 1. Prepare April and May 2017 income statements for Nascar Motors under (a) variable costing and (b) absorption costing. 2.Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing