9-18 Variable and absorption costing, explaining operating-income differences. Big Screen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January February, and March of 2012 are as follows: January February March 0 1,000 700 300 800 800 300 1,250 1,500 Unit data Beginning inventory Production Sales Variable costs Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs Manufacturing costs Operating (marketing) costs 900 $ S 600 S 900 S 600 S 900 $ 600 $400,000 $140,000 $400,000 $140,000 $400,000 S140,000 Required The selling price per unit is $2,500. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit i 1,000 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 income statements for BigScreen in January, February, and March of 2012 under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. 9-19 Throughput costing continuation of 9-18). The variable manufacturing costs per unit of Big Screen Corporation are as follows: Direct material cost per unit Direct manufacturing labor cost per unit Manufacturing overhead cost per unit January $500 100 300 $900 February S500 100 300 5900 March $500 100 300 5900 Required 1. Prepare income statements for BigScreen in January, February, and March of 2012 under through- put costing. 2. Contrast the results in requirement with those in requirement 1 of Exercise 9-18. 3. Give one motivation for BigScreen to adopt throughput costing