Class: D$2$ Student ID: Student Name: Time: from Sunday to Wednesday $($in library$)$ Question JetStar produces jet bridges for many domestic and international airports. Cost information for JetStar's jet bridges is as follows: Additional information for the first three quarters of $2020$ for JetStar are shown below: JetStar's controller, Max, wishes to analyze the difference in the income statements between throughput costing, absorption costing, and variable costing for the first $3$ quarters of $2020.$ Assume no beginning inventory. Required: Part. $1$: $(10$ points$)1.$ Prepare an absorption costing income statement $2.$ Prepare a variable costing income statement $3.$ Prepare a throughput costing income statement $4.$ Explain the difference in the net income under each costing method. $5.$ Based on the information provided, which costing method do you believe JetStar is currently using to calculate the bonus for the production manager? Why? Part. $2$: $(10$ points$)$ JetStar's production manager, who receives a bonus based on the reported net income, learns that under absorption costing, producing more units than are sold can temporarily increase net income $($because some fixed manufacturing costs are "deferred" in inventory$).$ As the third quarter ends and the manager sees the bonus calculation will soon be finalized, they begin planning to increase production in the upcoming quarter$-$even though the forecast for sales demand remains unchanged. Discuss how the production manager's decision to overproduce could affect the reported net income under absorption costing, compared to variable or throughput costing.