Suppose that during April, VitaSport produces 10,500 cases of powdered drink mix and sells 11,500 cases. Sale price, variable cost per case, and total fixed expenses remain the same as in March 1. Prepare the April income statement under absorption costing. 2. Is absorption costing income higher or lower than variable costing income? Explain. 3. Reconcile the difference between the absorption costing income statement and the variable costing income statement. E: (Click the icon to view relevant data.) (Click the icon to view the Income Statement (Absorption Costing) for March.) (Click the icon to view the Income Statement (Variable Costing) for April.) Requirement 1. Prepare the April income statement under absorption costing. Data Table Vita Sport Income Statement (Absorption Costing) Month Ended April 30 Sales revenue Healthade had a sale price of $31 per case and March's ending inventory was 2,000 cases. Deduct: Cost of goods sold: Beginning finished goods inventory Cost of goods manufactured Cost of goods available for sale Ending finished goods inventory Cost of goods sold Gross margin Deduct: Operating expenses Operating income Direct materials cost per case 5.00 Direct labour cost per case.... 4.00 Variable manufacturing overhead cost per case 3.00 Sales commission per case.... 3.50 Total fixed manufacturing overhead expenses...... 63,000 Total fixed marketing and administrative expenses.. 28,000 Absorption Variable Costing Costing Direct materials 5.00 $ 5.00 Direct labour. 4.00 4.00 Variable manufacturing overhead 3.00 3.00 Fixed manufacturing overhead 6.00 18.00 $ 12.00 Total cost per case.. * $63,000 fixed manufacturing overhead = $6 per case 10.500 cases Print Done