Skinny Dippers, Inc. produces nonfat frozen yogurt. The product is sold in ten-gallon containers, which have the following price and variable costs.

Sales price. $ 46

Direct material 17

Direct labor 11

Variable overhead 10

Budgeted fixed overhead in 20x1, the company's first year of operations, was $600,000. Actual production was 200,000 ten-gallon containers, of which 190,000 were sold. Skinny Dippers, Inc. incurred the following selling and administrative expenses.

Fixed $ 200,000 for the year

Variable $ 3 per container sold

Prepare operating income statements for 20x1 using variable costing???

Reconcile the operating income reported under the two methods by listing the two key places where the income statements differ???