LETTOR Show Me How Variable Costing, Absorption Costing During its first year of operations, Snobegon, Inc. (located in Lake Snobegon, Minnesota), produced 40,000 plastic snow scoops. Snow scoops are versied shoveltype scoops that are used to push snow away. Unit sales were 38,700 cops Fixed overhead was applied at $0.70 per un produced. Fixed overhead was underpelled ty $3,000. This fixed overhead variance was closed to cost of Goods Sold. There was no variable overhead variance. The results of the year's operations are as follows con an absorption-costing basis): Sales (38,700 units $20) $774,000 Less: Cost of goods sold 548,560 Gross margin $225,440 Less: Selling and administrative expenses (all fixed) 184,500 Operating income $ 40,940 Required: 1. Calculate the cost of the firm's ending inventory under absorption costing. Round unit cost to five decimal places. Round your final answer to the nearest dollar. 18,240 X Feedback What is the cost of the ending inventory under variable costing? Rund unit cost to five decimal places. Round your final answer to the nearest dollar. 17,381 x Feedback 2. Prepare a variable-costing income statement. Round the unit cost to five decimal places, when required. Round your final answers to the nearest dollar, Use the rounded values in subsequent computations. Cunhan nc What is the cost of the ending Inventory under variable conting? Round unit cost to five decimal places. Round your final answer to the nearest dollar 17,381 X 2. Prepare a variabile-couting intorno statement, round the unit cost to five decimal places, when required. Round your finalwers to the nearest dotter Use the rounded values in subsequent computation Snobegon, Inc. Variable-Costing Income Statement For the First Year of Operations Sales Contribution margin Less: Operating income What is the difference between the two income figures