The Garden City Company uses an absorption-costing system based on standard costs. Variable manufacturing cost consists of direct material cost of $3.00 per unit and other variable manufacturing costs of $1.60 per unit. The standard production rate is 20 units per machine-hour. Total budgeted and actual fixed manufacturing overhead costs are $525,000. Fixed manufacturing overhead is allocated at $14 per machine-hour based fixed manufacturing costs of $525,000 / 37,500 machine-hours, which is the level Garden City uses as its denominator level. The selling price is $18 per unit Variable operating (non-manufacturing) cost, which is driven by units sold, is $2 per unit. Fixed operating (non-manufacturing) costs are $160,000. Beginning inventory in 2017 is 35,000 units, ending inventory is 40,000 units. Sales in 2017 are 685,000 units. The same standard unit costs persisted throughout 2016 and 2017. For simplicity, assume that there are no price, spending, or efficiency variances. : (Click the icon to view the variable costing income statement.) Required Requirement 1. Prepare an income statement under throughput costing for the year ended December 31, 2017, for Garden City Company. Complete the top half of the income statement first, and then complete the bottom portion. (Use parentheses or a minus sign for an operating loss.) Throughput Costing Other costs: Total other costs Complete the top half of the income statement first, and th Throughput Costing Beginning inventory Contribution margin Cost of goods available for sale Cost of goods sold Deduct ending inventory Direct materials in goods manufactured Fixed operating costs Gross margin Manufacturing costs Operating income Other operating costs Revenues Throughput margin Total direct material cost of goods sold LL Reauirement 2. Reconcile the difference between the cont Choose from any list or enter any number in the input fie X i Variable costing income statement $ 12,330,000 $ 161,000 3,174,000 Variable costing Revenues Variable cost of goods sold: Beginning inventory Variable manufacturing costs Cost of goods available for sale Deduct ending inventory Variable cost of goods sold Variable operating costs Contribution margin Fixed manufacturing costs Fixed operating costs Operating income 3,335,000 (184,000) 3,151,000 1,370,000 7,809,000 525,000 160,000 $ 7,124,000 Print Done Requirement 2. Reconcile the difference between the contribution margin and throughput margin for Garden City in 2017. Then reconcile the operating income between variable costing and throughput costing for Garden City in 2017. (Leave unused cells blank. Use parentheses or a minus sign for negative amounts.) Contribution/Throughput margin Reconciliation Operating income (1) Variable costing (2) Throughput costing (3) Difference (2) - (1) Reasons for differences: Variable manufacturing costs Variable operating costs Expensing of variable manufacturing costs