Cool Ride Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2020 are as follows: (Click the icon to view the data.) The selling price per vehicle is $25,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 700 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. 1 April May 2 Unit data: 3 Beginning inventory 50 4 Production 700 625 Sales 650 655 6 Variable costs: 7 Manufacturing cost per unit produced $ 8,000 $ 8,000 8 Operating (marketing) cost per unit sold 2,400 2,400 9 Fixed costs: 10 Manufacturing costs $ 2,100,000| $ 2,100,000 11 Operating (marketing) costs 800,000 800,000 LO Requirements 1. Prepare April and May 2020 income statements for Cool Ride 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. Print Done (b) Prepare April and May 2020 income statements for Cool Ride Motors under absorption costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accounts. Label any variances as favorable (F) or unfavorable (U). If an account does not have a variance, do not select a label.) April 2020 May 2020 Revenues 16250000 16375000 |Variable costs: Beginning inventory 400000 Variable manufacturing costs 5200000 5240000 Allocated fixed manufacturing costs 1680000 5000000 Cost of goods available for sale Deduct ending inventory Adjustment for production-volume variance Cost of goods sold Gross margin