9-21 Cost ACCT

9-21 Variable and absorption costing, explaining operating-income differences. Nascar Motors as- sembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows: MyAccountingLab HomeInsert Page Layout F Formulas Data R Review ril Ma 2 Unit data 3Beginning invent 4 Production 5 Sales 6 Variable costs 7Manufacturing cost per unit 8 Operating (marketing) cost per unit sold 9 Fixed costs 10Manufacturing costs 11Operating (marketing) costs 500 350 400 520 $ 10,000 3,000 3,000 $2,000,000$2,000,000 600,000 600,000 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 1. Prepare April and May 2017 income statements for Nascar Motors under (a) variable costing and 2. Prepare a numerical reconciliation and explanation of the difference between operating income for production-volume variance is written off to cost of goods sold in the month in which it occurs. Required (b) absorption costing each month under variable costing and absorption costing