b. Reconcile the difference in net income between the absorption-costing and normal-costing methods. 8.22 (LO 1, 2, 3) Empey Manufacturing produces towels to be sold as souvenirs at sporting events throughout the world. Assume that units produced equalled units sold in 2020. The company's varia- ble-costing income statement and other data are as follows: Calculate the pro absorption costin costing, prepare costing incomes compare the use variable-costing absorption-cost EMPEY MANUFACTURING Income Statement Year Ended December 31, 2020 Variable Costing Sales (260,700 units) $521,400 Variable cost of goods sold $255,486 Variable selling expenses lo 31,284 Variable administrative expenses 323,268 Contribution margin og gi baron 198,132 Fixed manufacturing overhead 96,459 Fixed selling expenses 38,500 Fixed administrative expenses 42,625 177,584 Net income $ 20,548 Unit selling price Variable costs per unit inimese Direct material Direct labour Variable overhead Variable selling expenses or no Variable administrative expenses to be 0.26 0.34 0.38 0.14201 Instructions a. Calculate the manufacturing cost per towel under variable costing. b. Calculate the manufacturing cost per towel under absorption costing. c. Prepare an absorption-costing income statement for Empey Manufacturing. d. Explain why there is or is not a difference in the net income amounts in the two income stat e. Explain why Empey Manufacturing might want to prepare both an absorption-costing incor ment and a variable-costing income statement