Question 2 Laser Motors assembles and sell motor vehicles and uses standard costing. Actual data relating to April 2020 are as follows: April Unit data: Beginning inventory 50 Production 550 Sales 580 Ending Inventory Variable costs: Manufacturing cost per unit produced $ 8.000 Operating (marketing) cost per unit sold S 2,400 Fixed costs: Manufacturing costs $ $ 2.400.000 Operating (marketing) costs $ 500,000 The selling price per vehicle is $22,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 units. There are no price, efficiency, or spending variances (so actual MOH costs are the same as budgeted). Any production-volume variance is written off to cost of goods sold in the month in which it occurs. 1.) Prepare an April 2020 Income Statements for Laser Motors under (a) variable costing and (b) absorption costing. April Variable Costing Method: Revenues Cost of Goods Sold Beginning Inventory Production Costs Inventory Available for Sale Ending Inventory Variable Cost of Goods Sold Variable Marketing Costs Contribution Margin Fixed Manufacturing Costs Fixed Marketing Costs Operating Income b) April Production volume variance Production volume variance April Absorption Costing Method: Revenues Cost of Goods Sold Beginning Inventory Production Costs Inventory Available for Sale Ending Inventory Production Volume Variance Cost of Goods Sold Gross Margin Variable Marketing Costs Fixed Marketing Costs Operating Income 2.) Prepare a numerical reconciliation and an explanation of the difference between operating income for each month under variable costing and absorption costing. April Variable Costing Operating Income Deduct: FMOH for Beginning Inventory Add: FMOH for Ending Inventory Absorption Costing Operating Income