Absorption and variable Costing Income Statements for Two Months and Analysis During the first month of operations ended May 31, 2015, T-shirt Express Company produced 28,300 designer T-shirts, of which 26,300 were sold. Operating data for the month are summarized as follows: Sales $184,100 Manufacturing costs: Direct material $113,200 Direct labor 31,130 Variable manufacturing cost 14,150 Fixed manufacturing cost 11,320 169,800 Selling and administrative expenses: Variable $10,520 7,680 18,200 During June, T-shirt Express Company produced 24,300 designer Tshirts and sold 26,300 T-shirts. Operating data for June are summarized as follows: Sales $184,100 Manufacturing costs: Direct materials $97,200 Direct labor 26,730 Variable manufacturing cost 12,150 Fixed manufacturing cost 11,320 147,400 Selling and administrative expenses: Variable $10,520 7,680 18.200