please help!

Chapter 20 Homework 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) Manufacturing costs (16,000 units): $880,000 Direct materials Direct labor Variable factory overhead Fixed factory overhead Fixed selling and administrative expenses Variable selling and administrative expenses 534,400 126,400 59,200 70,400 19,100 23,200 The company is evaluating a proposal to manufacture 17,600 units instead of 16,000 units, thus creating an Inventory, total fixed factory overhead cost, or total selling and administrative expenses. a. 1. Prepare an estimated income statement, comparing operating results if 16,000 and 17,600 units are manufactured October 31 of 1,600 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, in the absorption costing format. If an amount box does not require an entry leave it blank or enter "0 Marshall Inc. Absorption Costing Income Statement For the Month Ending October 31 Cost of goods sold: Income from operations a. 2. Prepare an estimated income statement, comparing operating results if 16,000 and 17,600 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank or enter "0 Marshall Inc Variable Costing Income Statement For the Month Ending October 31 Variable cost of goods sold Check My Work Previous Chapter 20 Homework Cost of goods sold: Income from operations a. 2. Prepare an estimated income statement, comparing operating results if 16,000 and 17,600 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank or enter"0". Marshall Inc. 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 fixed 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? The increase in income from operations under absorption costing is caused by the allocation of overhead cost over a difference can also be explained by the amount of number of units. Thus, the cost of goods sold is The overhead cost included in the inventory