on a variable-costing system. The firm has just adopted variable costing for its internal reporting. HUBER CORPORATION Income Statement For the Month of November (in thousands) Sales $2,400 Less variable cost of goods sold 1,200 Contribution margin 1,200 Less fixed manufacturing costs at budget 600 Gross margin 600 Less fixed selling and administrative costs 400 Net income before taxes $200 The controller attached the following notes with the statements: 1 The unit sales price for November averaged $24. 2. The unit manufacturing costs for the month were as follows: Variable costs Fixed costs applied Total cost $12 4 $16 3. 4. The unit rate for fixed manufacturing costs is a predetermined rate based on a monthly production of 150.000 units. The variable costs per unit have been stable all year, 5. Production for November was 45,000 units in excess of sales. 6. The inventory at November 30 was 80,000 units. (a) The vice-president for sales is not comfortable with the variable-costing system and wonders what the net income would have been under the previous absorption-costing system. 1. Present the November income statement on an absorption-costing basis. HUBER CORPORATION Absorption-Costing Income Statement For the Month Ended November 30, 2020 Sales in units Cost of Goods Sold Less 2400 1241.38 2. Reconcile and explain the difference between the variable-costing and absorption-costing net income figures. Variable-costing net income FMOH deferred in ending inventory