2. Change all of the numbers in the data area of your worksheet so that it looks like this:

A

B

C

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Chapter 6: Applying Excel
Data
Selling price per unit	$366
Manufacturing costs:
Variable per unit produced:
Direct materials	$146
Direct labor	$80
Variable manufacturing overhead	$21
Fixed manufacturing overhead per year	$167,400
Selling and administrative expenses:
Variable per unit sold	$3
Fixed per year	$100,000
	Year 1	Year 2
Units in beginning inventory	0
Units produced during the year	3,100	2,700
Units sold during the year	2,800	2,800

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? (Loss amounts should be indicated with a minus sign.)

(b) What is the net operating income (loss) in Year 2 under absorption costing? (Loss amounts should be indicated with a minus sign.)

(c) What is the net operating income (loss) in Year 1 under variable costing? (Loss amounts should be indicated with a minus sign.)

(d) What is the net operating income (loss) in Year 2 under variable costing? (Loss amounts should be indicated with a minus sign.)