The JasRop Corporation manufactures high quality widgets. The company uses a standard costing system. The following data are for the year ended December 31, 20x3: Inventory, Jan 1, 20x3 90,000 units Inventory, Dec 31, 30,000 units 20x3 Sales 300,000 units Selling price $38.50 Variable manufacturing costs 7.25 Variable selling costs 1.75 Fixed manufacturing overhead $1,810,000 Denominator-level direct labour hours 7,750 Standard production rate 40 units per direct labour hour Fixed operating expenses $1,250,000 Required Prepare income statements under variable and absorption costing for the year ended December 31, 20x3 and reconcile the two incomes. Assume that the budget costs were the same as the actual costs incurred