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 $ 192 $ 13 $438,840 Variable manufacturing overhead Fixed manufacturing overhead costs (total) Selling and administrative costs: Variable 10% of sales Fixed (total) $333,900 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 produced4,770 Units sold 3,550 3. Prepare a contribution format income statement for the month using variable costing. (Do not leave any empty spaces; input ao wherever it is required.) ales $ 1,735,950 Variable expenses Variable cost of goods sold Beginning inventory Add: Variable manufacturing costs 977,850 Goods available for sale 977,850 Less: Ending inventory 250,100 Variable cost of goods sold 727,750 Variable selling and administrative expense 173,595 901,345 Contribution margin 834,605 Fixed expenses: Fixed manufacturing overhead 438,840 333,900 772,740 Fixed selling and administrative expense $61,865 Operating income 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 $ 1,735,950 Cost of goods sold: Beginning inventory 1,416,690 Add: Cost of goods manufactured Goods available for sale 1,416,690 362,3401,0 1,054,350 Less: Ending inventory Gross margin 681,600 Selling and administrative expenses 507,495 Operaing income $ 174,105 5. Reconcile the absorption costing and variable costing operating income figures in (2) and (3) above Variable costing operating income (loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing 0 Absorption costing operating income (loss)