Super Products, Inc. uses a standard costing system. For June and July the following costs were budgeted and incurred: Manufacturing costs: Variable costs per unit: Direct materials $ 30 Direct labor $ 42 $ 6 Variable overhead $300,000 Fixed overhead costs: (monthly total) $22 Selling & Administrative Costs: Variable costs per unit sold: Fixed (monthly total) $175,000 The budgeted denominator level used to determine the fixed overhead allocation rate was 5,000 units for each month. For July, the following information was available: Inventory July 1 1,000 units Units produced in July 4,000 units Units sold in July 3,200 units Selling price per unit $300 Assume there are no price, efficiency, or rate (spending) variances. Explain the difference in the month of July's operating income resulting from the absorption costing and the variable costing methods. (4 marks) ini MY 20 c? 3