Given the following information: Prior Year Prior Year Current Current Year (Budget) (Actual) Year (Actual) (Budget) Beginning Inventory (Units) 0 0 ? ? Sales (Units) 610,000 570,000 582,000 590,000 Manufactured (Units) 600,000 590,000 640,000 610,000 Selling Price ($/unit) 9.99 9.90 9.95 10.10 Variable Manufacturing Cost ($/unit) 4.93 4.93 4.96 4.96 Total Fixed Manufacturing Costs ($) 1,584,000 1,561,000 1,664,000 1,599,531 Variable Selling Cost ($/unit) Total Fixed SG&A Costs ($) 1.00 360,000 1.02 0.99 1.01 363,000 356,850 348,000 Other information: The manufacturer uses FIFO (this is to make is easier to solve - weighted average would be a lot more difficult to solve) The manufacturer uses Standard Costing Required: A. Prepare an income statement for the Current Year based on Variable Costing. B. Prepare an income statement for the Current Year based on Absorption Costing. C. Prepare a T-account that for Fixed Manufacturing Overhead based on Absorption costing that shows: actual costs, applied costs, rate variance and production volume variance (hint: this account should be at zero at year- end) D. Reconcile the difference in Net Income between Variable Costing and Absorption Costing for the current year. (hint: compare this difference in income to the differences in ending inventory for Absorption Costing and Variable Costing).