Question 42 12 pts Life in a Dollhouse sells dollhouse kits for $250 each. You are given the following information for each kit: Direct materials per kit $22 Direct labor per kit $40 Variable overhead per kit $5 Variable selling costs per kit $8 Fixed selling costs (in total) $25,000 Fixed overhead costs in total) $30,000 3,000 kits were produced this year, and 2,900 kits were sold. Part 1: Using the information above, prepare a direct or contribution margin income statement. (round to the nearest whole dollar, with no decimal places) Sales Less: Variable costs Contribution Margin Less: Fixed selling Fixed overhead Operating income Part 2: Using the information above, prepare an absorption (or GAAP) Income statement. (round the the nearest whole dollar, with no decimal places) Sales Less: Cost of Goods Sold Gross Profit Less: Variable Selling Fixed Selling Operating income D Question 43 1 pts Part 3: Using the information above, reconcile the differences you found between the contribution margin and the absorption income. Explain and prove it mathematically (meaning, show me the calculation as to WHY there is a difference in operating income reported). Edit View Insert Format Tools Table 12pt v Paragraph B IV A & Tv