Prepare income statements using variable costing, assuming that Cloverton Glass makes $1,000,1,250,$ and $1,500$ lamps

during the year.Cloverton Glass Company makes stained glass lamps. Each lamp that it sells for $$128$ requires $$20$ of direct materials and $$32$ of

direct labor. Fixed overhead costs are expected to be $$72,000$ per year. Cloverton Glass expects to sell $1,000$ lamps during the coming

year. Selling and administrative expenses were zero.

Required:

a$.$ Prepare income statements using absorption costing, assuming that Cloverton Glass makes $1,000,1,250,$ and $1,500$ lamps during

the year.

b$.$ Prepare income statements using variable costing, assuming that Cloverton Glass makes $1,000,1,250,$ and $1,500$ lamps during the

year.

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Prepare income statements using absorption costing, assuming that Cloverton Glass makes $1,000,1,250,$ and $1,500$ lamps

during the year.