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2. Change all of the numbers in the data area of your worksheet so that it looks like this: B A 1 Chapter 7: Applying

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2. Change all of the numbers in the data area of your worksheet so that it looks like this: B A 1 Chapter 7: Applying Excel 2 3 Data 336 $ $ 144 52 $ 25 $ 92,000 4 Selling price per unit 5 Manufacturing costs: Variable per unit produced: 6 Direct materials 7 Direct labor 8 Variable manufacturing 9 overhead 10 Fixed manufacturing overhead 11 per year 12 Selling and administrative expenses: 13 Variable per unit sold 14 Fixed per year 15 16 17 Units in beginning inventory 18 Units produced during the year Units sold during the year $ 2 $ 48,000 Year 2 Year 1 0 2,300 2,100 2,000 2.100 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the net operating income (loss) in Year 1 under absorption costing? (b) What is the net operating income (loss) in Year 2 under absorption costing? (c) What is the net operating income (loss) in Year 1 under variable costing? E (d) What is the net operating income (loss) in Year 2 under variable costing? (e) The net operating income (joss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect) Units were left over from the previous year The cost of goods sold is always less under variable costing than under absorption costing Sales exceeded production so some of the fixed manufacturing overhead of the period was released from inventories under absorption costing

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