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Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31 Marshall Inc. estimated the following operating results: Sales (16,000 x $55) $880,000 Manufacturing costs (16,000 units): Direct materials 534,400 Direct labor 126,400 Variable factory overhead 59,200 Fixed factory overhead 70,400 Fixed selling and administrative expenses 19.100 Variable selling and administrative expenses 23,200 The company is evaluating a proposal to manufacture 17,600 units instead of 16,000 units, thus creating an inventory, October 31 of 1.600 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total scing and administrative expenses a. 1. Prepare an estimated income statement, comparing operating results if 16,000 and 17.600 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank or enter " Marshall Inc. Absorption Costing Income Statement For the Month Ending October 31 15.000 Un Manufactured 17.600 Unt Manufactured Cost of goods sold Previous Next > *** Marshall Inc Absorption Costing Income Statement For the Month Ending October 31 16,000 Units Manufactured 17.500 Units Manufactured Cost of goods sold: Income from operations a. 2. Prepare an estimated income statement compare leave it blank or enter"0" anable costing format. If an amount box does not require an entry Marshall inc. Variable Costing Income Statement For the Month Ending October 16.000 Units Manufactured Variable cost of goods sold: (previous Next Calculator Variable Costing Income Statement For the Month Ending October 31 16,000 Units Manufactured 17,600 Units Manufactured Variable cost of goods sold: Fixed costs: Total foxed costs b. What is the reason for the difference in income from operations reported for the two levels of production by the absorption costing income statement Over Store number of units. Thus, the cost of overhead cost included in the The increase in income from operations under absorption costing is caused by the allocation of goods sold is The difference can be explained by the amount of 4:46 PM