C Problem Sets Module eBook Show Me How Income Statements under Absorption conting and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 200% of capacity during the meat month. The following data summarize the results for July Sales (8,000 units) $1,200,000 Production costs (10,000 units) Direct materials $S55,000 Direct labor 266,000 Variable factory overhead 133,000 Fixed factory overhead 89.000 1,043,000 Selling and administrative expenses Variable selling and administrative expenses $161,700 Fixed selling and administrative expenses 62,600 224,300 If required, round interim per-unit calculations to the nearest cent. . Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended uly31 6. Prepare an income statement according to the variable couting concept Gallatin County Motors Inc. Variable Costing Income statement For the Month Ended: July 31 Fixed costs Check My Work Next > Assignment Score: 0.0% Emainstructor Save and Ex Submit Assignment for Grading b. Prepare an income statement according to the variable costing concept Gallatin County Motors Inc. Variable Costing Income For the Month Ended July 31 Statement Foxed costs: c. What is the reason for the difference in the amount of operating income reported in (a) and (b) Under the - method, the feed manufacturing cost included in the cost of goods sold is matched with the revenues. Under the wed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, wens inventory increases, the income statement will have a higher operating income. Check My Work