Speedy Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May are provided. (Click to view the data.) The selling price per vehicle is $22,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or rate variances. Any production-volume variance is written off to COGS in the month in which it occurs. Required 1. Prepare April and May statements of comprehensive income 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 2.975,000 5,142,500 Variable cost of goods sold Variable operating costs - -X 1,190,000 2,057,000 Data Total variable costs 4,165,000 7,199,500 3,535,000 6,110,500 April May Contribution margin Fixed costs: : Fixed manufacturing costs Fixed operating costs Unit data: 2.250,000 2,250,000 0 0 150 700,000 700,000 500 475 Total fixed costs 2,950,000 2.950,000 350 605 $ 585.000 Operating income $ 3,160,500 $ Beginning inventory Production Sales Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs $ 8,500 $ 8,500 3,400 3,400 Requirement 1b. Prepare April and May statements of comprehensive income for Speedy Motors under absorption costing. Complete the top half of the statement of comprehensive income for each month first, and then complete the bottom portion. (Er April May Revenue $ 7,700,000 $ 13,310.000 Cost of goods sold: el.) $ 2,250,000 $ 2.250,000 700,000 700,000