Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below: Manufacturing costs: Variable costs per unit: Direct materials Variable manufacturing overhead Fixed manufacturing overhead costs (total) Selling and administrative costs: Variable Fixed (total) $ 177 $ 13 $503,485 15% of sales $309,070 Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $489 each. During the first month of operations, the following activity was recorded: Units produced Units sold 4,985 3,740 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a O wherever it is required.) Sales $ 1,828,860 Cost of goods sold: 0 1,828,860 $ 1,828,860 3. Prepare a contribution format income statement for the month using variable costing. (Do not leave any empty spaces; input a 0 wherever it is required.) Variable expenses: Variable cost of goods sold: 0 0 0 0 Fixed expenses: 0 $ 0 5. Reconcile the absorption costing and variable costing operating income figures in (2) and (3) above. $ 31,376 Variable costing operating income (loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing operating income (loss) 125,745 $ 157,121