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Variable and Absorption Costing-Service Company Tech Helpers Company prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Tech Helpers provides a personal computer maintenance service that is sold for $100. The variable and fixed cost data are as follows: $25.00 Direct labor Overhead Variable cost per unit Fixed cost (annual) Marketing, general and administrative Variable cost (per service contract completed) Fixed cost (annual cost) $5.00 $240,000 $5.00 $20,000 During 2019,4,500 service contracts were started and 5,000 service contracts were completed. At the beginning of 2019, Tech Helpers had 500 service contracts in process at a per-unit cost of $90 in beginning work-in-process inventory. a. Calculate reported income for management. Do not use negative signs with any answers. Absorption Costing Income Statement Sales $ 500,000 Cost of Goods Sold: Beginning Inventory $ 45,000 Variable Costs 375,000 Fixed Costs 150,000 Less: Ending Inventory 0 Cost of Goods Sold 0 0 0 0 Administrative expense Net Income $ 0 0 b. Calculate reported income for the bank. Do not use negative signs with any answers. Variable Costing Income Statement Sales $ Cost of Goods Sold: Beginning Inventory 0 Variable Costs 0 0 0 Variable cost of goods sold 0 0 0 Fixed costs: 0 0 Administrative Expense Total Fixed Cost Net Income 0 $ 0 Disco Collefthaction