Data table 1 April May 2 Unit data: 3 Beginning inventory 0 50 4 Production 400 325 5 Sales 350 355 6 Variable costs: 7 Manufacturing cost per unit produced 3': 9.500 $ 9.500 8 Operating (marketing) cost per unit sold 3.600 3.600 9 Fixed costs: 10 Manufacturing costs $ 2.400.000 $ 2.400.000 11 Operating (marketing) costs 800.000 800.000 Requirements 1. Prepare April and May 2020 income statements for FastTrack Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. FastTrack Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2020 are as follows: g (Click the icon to view the data.) The selling price per vehicle is $23,000. The budgeted level of production used to calculate the budgeted xed manufacturing cost per unit is 400 units. There are no price, efciency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Read the m. Requirement 1. Prepare April and May 2020 income statements for FastTrack Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for FastTrack Motors under variable costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Complete all input fields. Enter a "0" for any zero balance accounts.) April 2020 May 2020(b) Prepare April and May 2020 income statements for FastTrack Motors under absorption costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accounts. Label any variances as favorable (F) or unfavorable (U). If an account does not have a variance, do not select a label.) April 2020 May 2020 \fRequirement 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Begin by determining the formula that will highlight the difference between the operating income under each method. Then complete the equation for each month. (Abbreviations used: Beg. = Beginning, End. = Ending, Var. = Variable, Mfg = Manufacturing. Complete all answer boxes. Entera "0" for any zero balance accounts.) Absorption-costing Va riable-costing operating income - operating income = Apr - = May - = The difference between absorption and variable costing is due solely to moving inventories as they V . into inventories as inventories and out of