Problems Series A PROBLEM 4.1A Absorption and variable costing income statements Objectives 1, 2 During the first month of operations ended August 31, 2007. Miracle Kitchen Ap- pliance Company manufactured 1420 refrigerators, of which 1.360 were sold op- rating data for the month are summarized as follows: Sales 3924800 Manufacturing costs Direct materials $340,300 Direct labor 134,900 Variable manufacturing cost 63.900 Fixed manufacturing cost 99.400 639,000 Selling and administrative expenses Variable $ 81,500 Fixed 34.000 115,600 SPREADSHEET 2. Income from operations, S193,000 Instructions 1. Prepare an income statement based on the absorption costing concept 2. Prepare an income statement based on the variable costing concept Explain the reason for the difference in the amount of income from op erations reported in (1and (2)