Speedy Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2020 are as follows: (Click the icon to view the data.) The selling price per vehicle is $26,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Read the requirements - X Requirements Deduct ending in Variable cost Variable operating co Contribution margin Fixed manufacturing Fixed operating costs 1. Prepare April and May 2020 income statements for Speedy Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. X Operating income Data table Print Done ncome stateme (b) Prepare April and Label any variances a A B C 1 1 April May $ 9,100,000 $ 15,210,000 2 Unit data: 3 0 150 S Beginning inventory 0 $ 4 2,370,000 5,225,000 2,280,000 500 Production 5,500,000 2,400,000 475 3501 585 Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Deduct ending Inventory Adjustment for production-volume variance Cost of goods sold Gross margin 7,900,000 (2,370,000) 9,875,000 642105 7 $ 11,000 $ 11,000 720000 U 0 5 Sales 6 Variable costs: Manufacturing cost per unit produced | 8 8 Operating (marketing) cost per unit sold 9 Fixed costs: 10 Manufacturing costs 11 Operating (marketing) costs ) 2,800 2,800 5,530,000 9352895 3,570,000 5857105 $ 2,400,000 $ 2,400,000 500,000 500.000