a) The company sold 10,000 units in 2017.

b) The manufacturing overhead is 50% variable.

c) Selling expense is 60% variable.

d) General & Administrative Expense is 65% variable.

6) Create an Income Statement for 2017 using Absorption Costing

7) Create an Income Statement for 2017 using Direct Costing

Cash, December 31, 2017 S 225 105,371 Accounts Receivable, December 31, 2017 45,748 Selling Expense 83,759 General & Administrative Expense 17,650 Direct Labor 515,103 ales 80,316 Direct Materials inventory, December 31, 2016 40,736 Direct Materials inventory, December 31, 2017 45,170 Work in Process inventory, December 31, 2016 53,810 Work in Process inventory, December 31, 2017 68,343 Factory depreciation 70,442 Indirect materials 84,675 Factory utilities 7,183 Indirect labor 54,866 Maintenance 5,830 Insurance Finished Goods Inventory, December 31, 2016 9,260 1,231 Finished Goods Inventory, December 31, 2017