B 1 Chapter 6: Applying Excel 2 3 4 $ 275 5 6 2 104 N Data Selling price per unit Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable per unit sold Fixed per year S 00 S 9 S 113.400 10 11 S 4 12 al 58.000 13 14 Year 1 Year 2 15 0 16 Units in beginning inventory Units produced during the year Units sold during the year 2.700 2.300 2.100 2.300 17 18 your formulas are correct, you should get the correct answers to the following questions. tal What is the net operating Income (loss In Year i under absorption costing? (b) What is the net operating income (loss) in Year 2 under absorption costing? (c) What is the net operating income (oss) in Yearl under variable costing? (d) What is the net operating income (loss) in Year 2 under variable costing? (e) The net operating Income (loss) 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 cilek 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 question mark will be automatically graded os incorrect.) unts were left over from the previous year The cost of goods sold is always less under variable costing than unde absomon costing 2 Sales exceeded production to some of the red manufacturing overhead of the period was released from invertortes under corption COSTO 3. Make a note of the absorption costing net operating income (loss) in Year 2 At the end of Year 1, the company's board of directors set a target for Year 2 of net operating income of $40,000 under absorption costing. If this target is met, a hefty bonus would be paid to the CEO of the company. Keeping everything else the same from part (2) above, change the units produced in Year 2 to 4.200 units. (a) Would this change result in a bonus being paid to the CEO? Yes O NO (b) What is the net operating income (los) In Year 2 under absorption costing