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What advice should the controller give to manageme I. PR 20-3A Absorption and variable costing income statements for two months and n analysis 8 During the first month of operations ended May 31, 2013, T-Shirt Express Company pro duced 37,000 designer T-Shirts, of which 34,300 were sold. Operating data for the month are summarized as follows: 5343,000 Sales Manufacturing costs: Direct labor Variable manufacturing cost Fixed manufacturing cost.. 57,350 26640 24420 319,310 Selling and administrative expenses Variable Fixed .. $ 16.464 12,005 28,469 During June, T-Shirt Express Company produced 31,600 designer T-shirts and sold 34,300 T-shirts. Operating data for June are summarized as follows Sales Manufacturing costs: $343,000 Direct labor Variable manufacturing cost Fixed manufacturing cost $180,120 48,980 22,752 24420276,272 Selling and administrative expenses: Variable Fixed $ 16,464 . 28.469 Instructions 1. Using the absorption costingconcept,prepare income statements for (a) May and riable costing concept, prepare income statements for (a) May and the reason for the differences in the amount of income from do) June 2. Using the variable costing concept, prepare income statements for (al (b) June Explain the reason for the differ operations in (1) and (2) for May operations in (D and (2) for June profitably in May or in June? Explain ain the reason for the differences in the amount of income from swers to () and ), did T-shin Express Company operate more bExplain the reason for the differ 4. Based on your answers to (D and (2), did T-Shirt E