Race Track Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows: 5 Click the icon to view the data.) The selling price per vehicle is $30,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 400 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. Read the requirements $ Requirement 1. Prepare April and May 2017 income statements for Race Track Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2017 income statements for Race Track Motors under variable costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Complete all answer boxes. Enter a "O" for any zero balance accounts.) April 2017 May 2017 Revenues $ 10,500,000 $ 9,900,000 Variable cost of goods sold: Beginning inventory S 0 525,000 Variable manufacturing costs 4,200,000 3,150,000 Cost of goods available for sale 4,200,000 3,675,000 Deduct ending inventory (525,000) (210,000) Variable cost of goods sold 3,675,000 3,465,000 Variable operating costs 1,190,000 1,122,000 Contribution margin 5,635,000 5,313,000 Ann nnn Fived manufacturinn cncte 2 annnnn Contribution margin Fixed manufacturing costs Fixed operating costs Operating income 5,635,000 2,400,000 675,000 $ 2,560,000 5,313,000 2,400,000 675,000 $ 2,238,000 (b) Prepare April and May 2017 income statements for Race Track Motors under absorption costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accounts. Label any variances as favorable (F) or unfavorable (U). If an account does not have a variance, do not select a label.) April 2017 May 2017 Revenues 10500000 9900000 Cost of goods sold: Beginning inventory 825000 Variable manufacturing costs 4200000 3150000 Allocated fixed manufacturing costs Cost of goods available for sale Deduct ending inventory Adjustment for production-volume variance Cost of goods sold Gross margin April May 0 50 300 400 350 330 Unit data: Beginning inventory Production Sales Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs GA 10,500 $ 3,400 10,500 3,400 $ 2,400,000 $ 2,400,000 675,000 675,000 Requirements 1. Prepare April and May 2017 income statements for Race Track 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. Print Done