Tami Tyler opened Tami's Creations, Incorporated, 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, Incorporated Income Statement For the Quarter Ended March 31 Sales (28,800 units) $ 1,152,000 Variable expenses: Variable cost of goods sold $ 495,360 Variable selling and administrative 184,320 679,680 Contribution margin 472,320 Fixed expenses: Fixed manufacturing overhead 254,400 Fixed selling and administrative 229,920 484,320 Net operating loss $ 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: 31,800 28,800 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.20 $ 8.10 $ 1.90 $ 6.40 Reg 1A Reg 1B Reg 1C Reg 3 Req 3B Reg 3C Reconcile the variable and absorption costing net operating Income (loss) figures. (Losses and deductions should be entered as a negative.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (1088) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing net operating income (los) During the second quarter of operations, the company again produced 31,800 units but sold 34,800 units. What is the company's variable costing net operating income (loss) for the second quarter? Tami's Creations, Incorporated Variable Costing Income Statement Sales $ 1,152,000 Variable expenses: Variable cost of goods sold Variable selling and administrative 0 1.152,000 Net operating income (loss) Reg 10 Ren 3R > 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 2 decimal places.) Tami's Creations, Incorporated Absorption Costing Income Statement Total 0 Net operating income (loss) PADA N. 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 Variablo Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Absorption costing net operating income (loss)