Race Track Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows: Click the icon to view the data.) The selling price per vehicle is $25000. 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 20 Revenues Variable cost of goods sold: Beginning inventory Deduct ending inventory Operating income Cancel Data Table April May ating e ap CI Unit data: es 0 150 og Beginning inventory 3 ih it Tat Cu! 400 325 Production ad Sales 250 425 le Variable costs: equ stil Pr etc sw plete all $9,000 $9,000 Manufacturing cost per unit produced Operating (marketing) cost per unit sold 2,600 2,600 May 2 Fixed costs: even Manufacturing costs $2,000,000 $2,000,000 ariat Operating (marketing) costs 500,000 500,000 E Cancel 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. 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 20 Revenues Variable cost of goods sold: Beginning inventory Deduct ending inventory Operating income Edit Table May 2017 April 2017 venues Eable cost of goods sold: Beginning inventory Deduct ending inventory rating income