2016 using absorption costing. for 2015 and 2016 costing. and Required profit for difference between production a. Prepare gross computations the impact of absorption and variable costing. Explain how profit year under (the first year of operations) your answers each for the gross p reported ized data Summan ariable and Absorption as follows: $3,000,000 Products, 7-2A. (75,000 units) units) Production costs (80,000 720,000 Direct material. 544,000 Manufacturing overhead: 320,000 Variable. 168,000 Fixed expenses: Operating 240,000 Variable. 18,000 Depreciation on equipment equipment). taxes inventory and Personal property taxes (on 28,800 30,000 Personnel department expenses Required based on full absorption costing. a. Prepare an income statement costing. Prepare an income statement based on variable Assume you must decide quickly whether to accept a special one-time order for 1.000 that most relevant data? Determine the a for $30 unit. income statement presents the data. ent profit or loss on the special order based solely on these d. If the ending inventory is destroyed by fire, which costing approach would you use as a basis fot filing an insurance claim for the fire loss? Why? Variable and Absorption Costing-Service Company Jensen's Tailoring provides custom taloring services. After the first year of operations, its owner prepared the following summarize company's data report for 2016