Requirements complete the rest of the incom 1. For 200, prepare income statements based on standard variable (direct) costing and standard absorption costing 2. Explain why operating income differs between variable costing and absorption costing. Be specific. Requirement 1. For 200, prepare income statements based on standard variable (direct) costing and standard absorption costing Begin with the standard variable-costing income statement. First, complete the income statement through the contribution margin, then complete the rest of the income statement (For make sure to enter " 0 " in the appropriate cell.) Question 1 Question 2 Question 3 Now prepare the standard absorption-costing income statement. First, complete the income statement through the gross profit, at standard, then complete the rest of the income statement. (Fo balance, make sure to enter "0" in the appropriate cell.) The basic production data at standard unit costs for the 2 years were as follows: selling prices or budgeted fixed costs in 200. There were no beginning or e (Click the icon to view the basic production data at standard unit costs.) work in process. Read the requirements. Requirement 2. Explain why operating income differs between variable costing and absorption costing. Be specific. When inventories increase, operating income will be higher under If inventories decrease, operating income will be higher under Data table income will be higher under income will be higher under