X E9-21 (similar to) Question Help Champion Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows: (Click the icon to view the data.) The selling price per vehicle is $21,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Read the requirements. Requirement 1. Prepare April and May 2017 income statements for Champion Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2017 income statements for Champion Motors under variable costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Complete all answer boxes. Enter a "0" for any zero balance accounts.) May 2017 April 2017 $ 7,350,000 Revenues $ 10,920,000 Variable cost of goods sold: Beginning inventory Adjustment for production-volume variance INT Variable cost of goods sold April May Unit data: Beginning inventory 0 150 Production 500 400 Sales 350 520 Variable costs: $ 9,500 $ 9,500 2,400 2,400 Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs $ 2,000,000 $ 2,000,000 700,000 700,000 1. Prepare April and May 2017 income statements for Champion Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing