Requirement 2. Prepare a 2020 income statement for Horace Company using absorption costing. Absorption Costing \begin{tabular}{|l|l|} \hline & \\ \hline \end{tabular} writes off production-volume variance to cost of goods sold. Actual data for 2020 are given as follows: (Click the icon to view the actual data for 2020.) Reauta Table aments. Requirement 1. Prepare a 2020 income statement for Horace Company using variable costing. Complete the top half of the income statement first, then complete the bottom portion. (For amounts with a \$0 balance, make sure to enter "0" in the appropriate input field.) \begin{tabular}{|r|l|r|} \hline & \multicolumn{1}{|c|}{ A } & B \\ \hline 1 & Units produced & 21,000 \\ \hline 2 & Units sold & 18,500 \\ \hline 3 & Selling price & \$32 \\ \hline 4 & Variable costs: & \\ \hline 5 & Manufacturing cost per unit produced: & \\ \hline 6 & Direct materials & $33 \\ \hline 7 & Direct manufacturing labor & 23 \\ \hline 8 & Manufacturing overhead & 62 \\ \hline 9 & Marketing cost per unit sold & 46 \\ \hline 10 & Fixed costs: & $1,550,000 \\ \hline 11 & Manufacturing costs & 906,300 \\ \hline 12 & Administrative costs & 1,479,000 \\ \hline 13 & Marketing costs & \\ \hline \end{tabular} Requirement 3. Explain the differences in operating incomes obtained in requirements 1 and 2. The difference in operating income under absorption costing and variable costing is . The 2020 operating income than the operating income under variable costing under absorption costing is because As a result, under costing, a portion of the overhead remained in inventory and led to a cost of goods sold than under the other method. could Horace management make to improve such a plan? Explain briefly. What are some pros and cons of using an absorption-costing-based gross margin? What modifications could Horace management make to improve such a plan