Variable Costing Income Statement Income statement instructions 3. Explain the reason for the difference in the amount of operating income reported in (1) and (2). The Operating income reported under costing exceeds the Operating income reported under costing, due to manufacturing costs that are deferred to a future month under costing. Absorption Costing Income Statement 1. Prepare an income statement based on the absorption costing concept. Income Statement Instructions During the first month of operations ended March 31 , IceBox Fridgeration Company manufactured 46,000 mini refrigerators, of which 40,000 were sold. Operating data for the month are summarized as follows: Required: 1. Prepare an income statement based on the absorption costing concept. 2. Prepare an income statement based on the variable costing concept. 3. Explain the reason for the difference in the amount of operating income reported in (1) and (2)