Question 2 Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new plant to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operations are shown below: 0 units Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead 10,400 9,000 Variable overhead $124,800 $7 per unit $11 per unit $28 per unit Direct labour Direct material Selling and administrative costs Fixed $210,000 $4 per unit sold Variable The portable cooking unit sells for $112. Management is interested in the opening month's results and has asked for an income statement. (b) Reconcile the difference in net income between the absorption-costing and variable-costing methods. Variable costing operating income $ Fixed manufacturing overhead costs deferred in ending inventory Absorption costing operating income