0-Compatibility Mode Word View Help Mailings Review ences Aa A E AL AaBbCcD AaBbCcD AaBbC AaBbCcC A- T Normal T No Spac. Heading 1 Heading 2 Patagraph Styles Hansna CanmaARLic.masnai Dayton Tech Corporation manufactures financial calculators. It sells the calculators at $65 each. The variable costs of calculators are as follow: Direct material/unit $20 Direct labor/unit Variable manafacturing overbead. $11 S.8 Additional annual information for 20x1: Budgeted and actual fixed overhead $200,000 per vear Dayton allocates its fixed overhead based on # of units budgeted to produce. Its budgeted production in 20xt is 25,000 ueits. Variable SG&A was $1 per unit. Fixed SG&A was $30.000 .Beginming finished goods inventory is zero .Dayton writes off any under- or over-allocated fixed overhead to Cost of Goods Sold Required) Question I and Question 2 are independent froem each other. 1 Assume that Dayton produced 25,000 calealators and sold 22,000 units. a Prepare income statements for year 20x1 using L Absorption costng n. Variable costaig. b. Explain the difference betiween reported income under absoepticn costing and reported income under variable costing 2. Assume that Dayton produced 26,000 units and sold 22,000 caleulators Compute Dayton's operating income for year 20xl sng Absorpbion costing Make an appropriate adjustment if the company has any under- or over-allocated fixed orerhead m 20x1