Assume the following for Katelynn’s Coaster Company for the year ended 12/31/12:Direct Materials $3 per unit Direct Labor $4 per unit Variable Overhead$2 per unit Variable Selling $1 per unit Sales Price $15 per unit, 1800 units sold in 2012 Fixed Selling $1,000 for the period, based on 2,000 units producedFixed OH $3,000 for the period, based on 2,000 units produced Required: a. Prepare Income Statements under direct and absorption costing b. Reconcile the Operating Incomes between direct and absorption costing