Exercise 19-3 Income reporting under absorption costing and variable costing LO P Sims Company, follows. a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and sales information for this ye Manufacturing costs Direct materials Direct labor Overhead costs for the year 40 per unit 60 per unit Variable overhead $3,000,000 $7,000,000 Fixed overhead Selling and administrative costs for the year Variable Fixed s 770,000 4,250,000 Production and sales for the year Units produced Units sold 100,000 unita 70.000 unito 9350 per unit Sales price per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing 3. Under what circumstance(s) is reported income identical under both absorption costing and variable costing