Nascar Motors as- sembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows: Home Insert Page Layout Formulas Data Review D. April May 2...

Q.Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing

Extracted text: Nascar Motors as- sembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows: Home Insert Page Layout Formulas Data Review D. April May 2 Unit data: 3 Beginning inventory Production Sales 6 Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold 9 Fixed costs: 10 Manufacturing costs 11 Operating (marketing) costs 150 500 350 4 400 520 S 10,000 3,000 S 10,000 3,000 8. $2,000,000 600,000 $2,000,000 600,000 The selling price per vehicle is $24,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.