The Jarvis Companys Cost Department prepares annual income statements based on absorption costing. Following information have been received from their accounting records for a single product at the end of December 31^st, 2015:

Planned Production in units	50,000
Actual Production in units	45,000
Actual sales in units	40,000

	Fixed Costs (Rs.)	Variable Costs (Rs.)
Raw Materials		25
Direct Labor		20
FOH		30
	Rs. 150,000 under the absorption costing
Marketing and Administrative Costing	Rs. 300,000	Rs. 11 per unit sold

Selling price of each single unit is Rs. 150.

Required

1. Prepare Comparative income statements for the year ended December 31^st, 2015 (a) the absorption costing method and (b) the direct costing method.
2. An explanation of the difference, if any, in the operating income figures.