Hoeley Limited manufactures and sells a single product. Hoeley Limited utilizes a standard costing system. Select information for the past year is:Sales volume 52,000 units. Selling price $46 per unit. Standard costs:Direct material and direct labour $14.25 per unit Budgeted manufacturing overhead $3.25 per unit plus fixed costs of $267,750 per year Budgeted level of production 59,500 units per year Beginning inventory 11,000 units. Ending inventory 15,000 units Selling, general and administrative $2.30 per unit sold plus fixed costs $560,000Income tax rate 40%Actual Production during year 56,000Variances for variable manufacturing costs amounted to $6,924 unfavorable. Actual expenditures for fixed manufacturing costs were $257,300. There were no variances with respect to any of the selling, general and administrative costs.Standard costs are constant year over year.REQUIRED:(a)

Prepare an absorption costing income statement for the year.(b)

Prepare a contribution costing income statement for the year.(c)

Reconcile the difference between the absorption and contribution income statements