\begin{tabular}{|c|c|c|c|c|} \hline Chapter 6: Applyino Excel & & & & \\ \hline \multirow{2}{*}{\multicolumn{5}{|c|}{ Chapter 6: Applyino bexcen }} \\ \hline DataSolingpaceporunit & & & & \\ \hline \multirow{2}{*}{\multicolumn{5}{|c|}{ Manding pocturing posts: }} \\ \hline & & & & \\ \hline \multicolumn{5}{|l|}{ Wanable per unit produced: } \\ \hline DivectmatorialsDirectlabor & 511 & & & \\ \hline DiredlaborVariabiemanutacturingovethead & & & & \\ \hline VariabiemanufacturingovetheodFisedmanistacturingovertieadperyear & 53 & & & \\ \hline \multirow{2}{*}{\multicolumn{5}{|c|}{ Soling and adminstrative expenses: }} \\ \hline Solingandadminstrativeexpenses:Varableperunitsold & & & & \\ \hline \multirow[t]{3}{*}{ Fued per year } & M4 & & 4 & \\ \hline & 570,000 & & & \\ \hline & Year 1 & Year 2 & & \\ \hline Uats in beginning inventory & 0 & & & \\ \hline Unla predused durng the year & 10,000 & 6,000 & & \\ \hline Units sold during the your & 8,000 & 8.000 & & \\ \hline \multicolumn{5}{|c|}{ Enter a formulo into each of the colls maked with a ? below } \\ \hline \multicolumn{5}{|c|}{ Review Problem 1: Contrasting Variable and Absorption Costing } \\ \hline \multirow[t]{2}{*}{ Campute the Ending linventary } & & & = & \\ \hline & Year 1 & Year 2 & & \\ \hline Units in begining imventory & 0 & ? & & \\ \hline Units produced dume the year & 7 & ? & & \\ \hline Whits sold during tho ynar & ? & ? & & \\ \hline Unes in ending inventady & 7 & ? & & \\ \hline \multicolumn{5}{|c|}{ Compute the Absorption Cosfing Unit Product Cost } \\ \hline & Yoar 1 & Ther2 & & \\ \hline Dinct matiorials & ? & 7 & & \\ \hline Dinect labar & ? & 7 & & \\ \hline Vanable manutacturing overhead & ? & ? & & \\ \hline Foud manulacturing overied & ? & ? & & \\ \hline Absorpbion costing uni probuct cost & 7 & 7 & & \\ \hline \multicolumn{5}{|c|}{ Conatruet the Absoptian Costing income Statement } \\ \hline & Yoar 1 & Year 2: & & \\ \hline Soles & 7 & ? & & \\ \hline Cost of goods sold & 7 & 7 & & \\ \hline Gross margn. & 7 & 7 & & \\ \hline Seling and admustrative expenses & 7 & 7 & & \\ \hline Not operating income & 7 & 7 & & \\ \hline \multicolumn{5}{|l|}{ Compute the Verlable Costing Unit Product Cost } \\ \hline & Year 1 & rear 2 & & \\ \hline Dired moveriais: & 7 & 7 & & \\ \hline Direct laser & 7 & ? & & \\ \hline Varable mandactuning owitisod & ? & ? & & \\ \hline Variatie costing unit product cost & ? & 7 & & \\ \hline \multirow{2}{*}{\multicolumn{5}{|c|}{ Construst the Verlable Costing incouse Statement }} \\ \hline & & Fere 1 & \multicolumn{2}{|c|}{ Year 2} \\ \hline Salen & & 7 & & 7 \\ \hline \multicolumn{5}{|l|}{Wariatileespences:Warabiscestofgoodesold} \\ \hline Varable cest of poode sod & 7 & & ? & \\ \hline Waruble viling ard adnusivitive copenses & ? & ? & 2 & 7 \\ \hline Condrbueon inargen & & 7 & & 7 \\ \hline \multicolumn{5}{|l|}{Flaedsopensed:fladdmandachuringoverhes:} \\ \hline flasd mandacturing ovehesed & 7 & & 7 & \\ \hline fiad weling and odminatrative experias & 1 & 7 & 2 & 2 \\ \hline & & 3) & & \\ \hline \end{tabular} 2. Change all of the numbers in the data area of your worksheet so that it looks like this: 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.) (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 click 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 a question mark will be automatically graded as incorrect.) Units were left over from the previous yeat. The cost of goods sold is always less under variable costing than under absorption costing. Sales exceeded production so some of the fixed manufacturing overhead of the period was released from inventories under absorption costing 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 $30,000 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 3,800 units. (a) Would this change result in a bonus being paid to the CEO