Shawnee Mators in semties and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August Sales 13,000 units $1,690,000 Production cost (17.000 unts) Direct mataas $817,700 Drect labor 392,700 Varubi for overtad 195,500 Bred factory overtad 130,900 1,536,600 Selling and adminive expenses Variable dating and administrative expenses $238.200 Med selling manistive penses 92,200 330,400 If resume, Fond interim petunt calculations to the newest cent e an income tener cording to the shortion costing concept Shawnee Metore Ine Absorption Corting Income Statement For the Month Ended August 11 b. Prepare an income statement according to the vanable costing concept Shawnee Motors Inc. Variable Costing Income Statement For the Month Ended August 31 Fixed costs 100 00 IO . What is the reason for the difference in the amount of income from operation reported in (a) and (b) Under the method, the fired manufacturing cost nouded in the cost of goods sold is matched with the revenues Under all of the red manufactura cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases the Income statement will have a higher income from corations that will the variable costing income statement