The I.C.U. Company manufacture a medical device used in hospitals across Canada. The company uses standard, absorption costing to prepare financial statements for its owners and creditors and, for internal management purposes, I.C.U. uses variable costing based on a standard costing system. I.C.U. also closes any production volume variance to cost of goods sold. There were no variances in the current year except a possible production volume variance. The following information is available regarding operations for the current year. $ Selling price per unit Sales (units) Beginning inventory (units) Production (units) 45.00 25,000 2,000 28,000 $ $ Standard Variable Manufacturing Costs per unit: Direct labour Direct materials Variable manufacturing overhead 10.50 21.00 3.25 $ 2.00 Variable Selling Expenses per unit sold Annual Fixed Costs: Manufacturing overhead Selling and administrative $ 90,000.00 $ 54,000.00 The overhead rate under absorption costing is based on practical capacity which is 30,000 units per year. REQUIRED: 1. Prepare standard manufacturing cost cards per unit of product under both variable and absorption costing. 2. Calculate the production volume variance for the current year, if any. 3. Prepare variable costing and absorption costing income statements for the current year. 4. Prepare a calculation or reconciliation to explain the difference (if any) between the variable and the absorption costing operating incomes for the current year