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2. Change all of the numbers in the data area of your worksheet so that it looks like this: A 1 Chapter 6: Applying Excel
2. Change all of the numbers in the data area of your worksheet so that it looks like this: A 1 Chapter 6: Applying Excel 2 3 Data 4 Selling price per unit $ 422 5 Manufacturing costs: 6 Variable per unit produced: 7 $ Direct materials 142 8 75 Direct labor 9 Variable manufacturing overhead 39 10 Fixed manufacturing overhead per year $ 184,800 11 Selling and administrative expenses: 12 $ Variable per unit sold 9 13 Fixed per year 94,000 14 15 Year 1 Year 2 16 Units in beginning inventory 17 Units produced during the year 3,300 2,800 18 Units sold during the year 3,000 3,000 Required information 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? Required information (c) What is the net operating income (loss) in Year 1 under variable costing? (d) What is the net operating income (loss) in Year 2 under variable costing? Required information (b) What is the net operating income (loss) in Year 2 under absorption costing? (c) Would this doubling of production in Year 2 be in the best interests of the company if sales are expected to continue to be 3,000 units per year? Yes No
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