Variable Costing Income Statement On July 31; the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $46,000 and the variable selling and administrative expenses were $33,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. b. Reconclle the absorption costing income from operations of $474,250 with the variable costing income from operations determined in (a). Reconciliation of Absorption and Variable Costing Income