ZK Toys started 2020 with no inventories. During the year, their expected and actual production was 28,000 units, of which they sold 16,800 units at $50 each. Cost data for the year is as follows: 5 (Click the icon to view the cost data.) Calculate ZK Toys' operating income under (1) variable costing, and (2) absorption costing. Explain why operating income differs under the two approaches. Begin by calculating ZK Toys' operating income under (1) variable costing. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Revenues 840000 Variable cost of goods sold 510000 - 124500 Data table 205500 Variable marketing costs Contribution margin Fixed manufacturing costs Fixed marketing costs Manufacturing costs incurred: 313600 77400 -185500 Variable: $ 510,000 Operating income Fixed: $ 313,600 Now calculate ZK Toys' operating income under (2) absorption costing. (If an input field is not used in the table, leave the input field empty; do not se Marketing costs incurred: Variable: $ 124,500 Revenues 840000 Fixed: Variable cost of goods sold $ 77,400 510000 Fixed manufacturing costs Gross margin Variable marketing costs Print Done Fixed marketing costs Operating income Absorption costing treats fixed manufacturing cost as a while variable costing treats it as a ZK Toys has units in ending inventory. Under absorption costing, these units have a fixed manufacturing cost of per unit. So the total fixed manufacturing cost in ending inventory under absorption costing is Since these costs are inventoried under costing, and not expensed as they would