9-16 Variable and absorption costing, explaining operating-income differences. Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2011 are as follows: Home Insert Page Layout Formulas Data Review BC D April May 150 400 520 2 Unit data 3 Beginning inventory 4 Production 5 Sales 6 Variable costs 7 Manufacturing cost per unit produced 8 Operating (marketing) cost per unit sold 9 Fixed costs 10 Manufacturing costs 11 Operating (marketing) costs $ 10,000 $ 10,000 3,000 3,000 $2,000,000 600,000 $2,000,000 1600,000 The selling price per vehicle is $24,000. 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. 1. Prepare April and May 2011 income statements for Nascar Motors under (a) variable costing and (b) absorption costing