Required Information Use the following Information to answer questions 42-44 The following information applies to the questions displayed below) Lehighton Chak Company manufactures sidewalk chalk, which itselis online by the box at $24 per unit. Lehighton uses an actual casting system, which means that the sctual costs of direct material, direct labor, and manufacturing overhead are entered into work-in-process inventory. The actual application rate for manufacturing overhead is computed each year, actual manufacturing overhead is divided by actual production (n units) to compute the application rate. Information for Leniginton's first two years of operation is as follows: Year 1 Year 2 Sales (in units) Production (in units) 2.000 Production costs Variable manufacturing costs $13,440 $ 9.500 Fixed manufacturing overhead 16.24 15,240 Selling and advinistrative costs Variable 9.se 9,560 Fixed 8.500 2.800 Selected Information from Lehighton's year-end balance sheets for its first two years of operation is as follows: LEHIGHTON CHALK COMPANY Selected Balance Sheet Information Based on absorption costing End of Year 1 End of Year 2 Finished goods Inventory $ 4,240 $ Retained earnings 15,80 Based on variable casting End of Year End of Year 2 Finished goods Inventory $1,920 $ Retained earnings 6,148 15,80 : Case 8-43 Analysis of Differences in Absorption-Costing and Variable-Costing Income Statements Continuation of Preceding Case (LO 8-1, 8-6) Required: 1. Reconcile Leniginton's operating income reported under sbarpean and variable casting, during esch yess, by comparing the following two amounts on esch income statement Cost of goods sold . Fixed cost expensed as period expense) 2 Whst wes Lehighton's total operating income across both years under absorption costing and under variable costing 3. What was the total sales revenue across both years under absorption costing and under variable costing? 4. What was the total of all costs expensed on the operating Income statements across both years under brorption costing and under variable costing? 5. Subtract the total cost expensed across both years (requirement 4 from the total sales revenue across both yesrs (requirement 3: (al under absorption costing and under variable costing. 6. Considering the results obtained in requirements 15 above, evaluste the following statements