Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,800 units) $1, 152,000 Variable expenses Variable cost of goods sold $ 478,080 Variable selling and administrative 190,080 668, 160 Contribution margin 483,840 Pixed expenses Yaxed manufacturing overhead 254.400 Fixed selling and administrative 241.440 495,840 Net operating loss 5 ( 12,000) Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter. At this point, Ms. Tyler is manufacturing only one product-a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow: Units produced Units sold Variable costs per unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 31,800 28,800 $ 7.50 $ 7.40 $ 1.70 $ 6.60 Reg 1A Reg 18 Reg 10 Req 3A Reg 3B Req 3C During the second quarter of operations, the company again produced 31,800 units but sold 34,800 units. What is the company's absorption costing net operating income (loss) for the second quarter? (Round your intermediate calculations to to decimal places.) Tami's Creations, Inc. Absorption Conting Income Statement Total 1,392.000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (los) 1,392,000 471,120 Complete this question by entering your answers in the tabs below. Req1A Reg 1B Reg 10 Req 3A Req 3B Req 30 During the second quarter of operations, the company again produced 31,800 units but sold 34,800 units. Reconcile the variable costing and absorption costing net operating incomes (losses) for the second quarter. (Losses and deductions should be entered as a negative.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (los) 88,800 Deduct: Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing net operating income (oss)