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Adeline Manufacturing manufactures a single product. Cost, sales, and production information for the company and its single product is as follows: i (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare an income statement for the upcoming year using variable costing. Adeline Manufacturing Contribution Margin Income Statement (Variable Costing) For the Year Ended December 31 Less: Less: Requirement 2. Prepare an income statement for the upcoming year using absorption costing. Adeline Manufacturing Income Statement (Absorption Costing) For the Year Ended December 31 Lass Less Requirement 3. What causes the difference in income between the two methods? When inventory levels cost (operating expense). Under due to less being expensed fixed MOH is expensed immediately as a period operating income will be greater under absorption costing than it is under variable costing. This is because under fixed MOH becomes part of the inventoriable cost of the product, which isn't expensed (as Cost of Goods Sold) until the inventory is sold, leaving a higher operating income Requirements 1. 2. Prepare an income statement for the upcoming year using variable costing. Prepare an income statement for the upcoming year using absorption costing. 3. What causes the difference in income between the two methods? More info Sales price per unit $35 . Variable manufacturing costs per unit manufactured (DM, DL and variable MOH) $20 Variable operating expenses per unit sold $11 . Fixed manufacturing overhead (MOH) in total for the year $128,000 Fixed operating expenses in total for the year $47,000 . . Units manufactured during the year 16,000 units Units sold during the year 13,500 units . X