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Sales (3,000 units) $1,740,000 Production costs (3,000 units): Direct materials $748,200 Direct labor 321,600 Variable factory overhead 52,500 Fixed factory overhead 82,200 1,204,500 Selling and
Sales (3,000 units) $1,740,000 Production costs (3,000 units): Direct materials $748,200 Direct labor 321,600 Variable factory overhead 52,500 Fixed factory overhead 82,200 1,204,500 Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses $37,300 15,700 53,000 This information has been collected in the Microsoft Fural Online fin Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales $ Cost of goods sold Gross profit $ Selling and administrative expenses Operating income $ h DANS Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 Sales $ Variable cost of goods sold $ Manufacturing margin Variable selling and administrative expenses Contribution margin $ Fixed costs: Fixed factory overhead costs Fixed selling and administrative expenses Total fixed costs Operating income c. What is the reason for the difference in the amount of Operating income reported in (a) and (b)
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