Absorption and Variable Costing Income Statements for Two Months and Analysis

During the first month of operations ended July $31,$ Head Gear Inc. manufactured $25,700$ hats, of which $23,900$ were sold. Operating data for the month are summarized as follows:

Sales $$157,740$

Manufacturing costs:

Direct materials

Direct labor

Variable manufacturing cost

Fixed manufacturing cost

Selling and administrative expenses:

Variable

Fixed

$$97,660$

$25,700$

$12,850$

$10,280$

$146,490$

Selling and administrative expenses:

Variable

$$7,170,$

$5,230,12,400$

Fixed

During August, Head Gear Inc. manufactured $22,100$ hats and sold $23,900$ hats. Operating data for August are summarized as follows:

Sales

$$157,740$

Manufacturing costs:

Direct materials

Direct labor

$\backslash$table$[[$$$83,980$