The following information was collected for the first year of manufacturing for Appliance Apps: Direct Materials per Unit Direct Labor per Unit Variable Manufacturing Overhead per Unit Variable Selling and Administration Expenses Units Produced $1.50 40,000 Units Sold 35,000 $13 Sales Price Fixed Manufacturing Expenses $120,000 $21,000 Fixed Selling and Administration Expenses Prepare an income statement under variable costing method. Appliance Apps Income Statement Prepare a reconciliation to the income under the absorption method. Appliance Apps Reconciliation