Variable costing versus absorption costing, Income Reconciliation (LO2). Horizon Manufacturing provides you with the following information for the most recent month of operations: Required: a. What is...

Variable costing versus absorption costing, Income Reconciliation (LO2). Horizon Manufacturing provides you with the following information for the most recent month of operations:

Required:

a. What is Horizon’s reported income and cost of ending inventory under variable costing?

b. What is Horizon’s reported income and cost of ending inventory under absorption costing? Assume Horizon allocates cost using units produced.

c. Reconcile the difference between Horizon’s income under variable costing and absorption costing.