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Variable Costing. Absorption Costing Duning its furst year of operations, Snobegon, Inc. (located in Lake Snobegon, Minnesota). produced 40,900 plastic snow scoops Snow scoops are oversized shavel-type scoops that are used to Unit sales were 38.400 SCOODS. Fixed overed was applied at 50.75 per unit produced. Fixed overhead was underapplied by $2.900. This fixed overhead variance was dosed to cost of Goods sol Variable overhead variance. The results of the year's operations are as follows (on an absorption costing basis) Sales (35.400 units @ $20) 5768,000 Less: Cost of goods sold 548,560 Gross margin $219,440 less Selling and naministrative expenses (all foxed) 185,500 Operating income $ 33.000 Required: 1. Calculate the cost of the firm's ending memory under absorption costing. Round unit cost to five decimal places. Round your final answer to the nearest dollar. What is the cost of the ending inventory under variable contie Round unit cost to five decimal places. Round your final answer to the nearest deklar. Prepare a vocable costing contenent. Round the unit cost to five decimal places, when required. Hound your final answers to the nearest dollar. Use the rounded values in computations Snobegon, Inc. Variable Costing Income Statement for the First Year of Operations 1. Calculate the cost of the firm's ending inventory under absorption costing. Round unit cost to five decimal places. Round your final answer to the nearest dollar. What is the cost of the ending inventory under variable costing Round unit cost to five decimal places. Round your final answer to the nearest dollar. 2. Prepare a variable-casting income statement. Round the unit cost to five decimal places, when required. Round your final answers to the nearest dollar. Use the rout computations, Snobegon, Inc. Variable Costing Income Statement For the First Year of Operations Contribution margin 000 000 Operating income What is the difference between the two comes

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