Smart Phone sold 800 cell phones in 2019 at $300 per phone. It has no beginning inventory (BI), the variable operating marketing cost per phone sold is $25, and the ending inventory (EI) is 200 phones. Its variable manufacturing cost per phone is $75 and its total (full cost) manufacturing cost per unit is $175. Allocated fixed manufacturing overhead (FOH) is $100,000. Smart Phone has the following summary absorption costing income statement for 2019: 2019 Absorption-Costing Based Operating Income Statement Revenues Less: Cost of goods sold Less: Overapplied O/H Adjusted Cost of goods sold Gross margin Less: Operating costs $240,000 140.000 (5,000) 135.000 105.000 70.000 $35.000 Operating income 1) Prepare Smart Phone's 2019 detailed variable costing income statement 2) Reconcile the income differences