Sales price per unit $49 Variable manufacturing costs per unit manufactured (DM, DL and variable MOH) $27 Variable operating expenses per unit sold $1 Fixed manufacturing overhead (MOH) in total for the year $221,000 Fixed operating expenses in total for the year $51,000 Units manufactured during the year 17,000 units Units sold during the year 13,500 units Allen Manufacturing manufactures a single product. Cost, sales, and production information for the company and its single product is as follows: Click the icon to view the data.) Read the requirements Requirement 1. Prepare an income statement for the upcoming year using variable costing. Allen Manufacturing Contribution Margin Income Statement (Variable Costing) For the Year Ended December 31 Less: Less: Requirement 2. Prepare an income statement for the upcoming year using absorption costing. Allen Manufacturing manufactures a single product. Cost, sales, and production information for the company and its single product is as follows: A Click the icon to view the data.) Read the requirements Contribution Margin Income Statement (Variable Costing) For the Year Ended December 31 Less Less Requirement 2. Prepare an income statement for the upcoming year using absorption costing. Allen Manufacturing Income Statement (Absorption Costing) For the Year Ended December 31 Less Less Requirement 3. What causes the difference in income between the two methods? fixed MOH is expensed immediately as a period cost (operating expense). Under fixed MOH becomes part of the When inventory levels operating income will be greater under absorption costing than it is under variable costing. This is because under inventoriable cost of the product, which isn't expensed (as Cost of Goods Sold) until the inventory is sold, leaving a higher operating income due to less being expensed. Choose from any list or enter any number in the input fields and then continue to the next