Scarecrow Manufacturing Company has provided the following financial data for its most recent month. Unit Selling Price $40 Units in beginning inventory Units produced 20,000 Units sold 15,000 Variable costs per unit: Direct materials Direct labor Manufacturing overhead V Selling and administrative costs Fixed costs: Manufacturing overhead $20,000 Selling and administrative costs $13,000 Required: 1. Prepare an income statement using an absorption costing format 2. Prepare an income statement using a variable costing format