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Buck & Company incurred the following costs during August: Manufacturing overthead is applied on a basis of $20 per direct labor hour. Assume that overapplied

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Buck \& Company incurred the following costs during August: Manufacturing overthead is applied on a basis of $20 per direct labor hour. Assume that overapplied or underapplied is tansfered to cost of goods sold only an the end of the year. During the month, 4,200 units of the product were manufactured and 4,400 units of product were sold. On August 1 and August 31 , Buck \& Company camled the following inventory balances: ons: Please proceed to the "Analysis" worksheet and complete the basic problem requirements. Complete the problem requirements by entering appropriate amounts or formulas in shaded worksheot cells: a. Complete the fow of manufacturing costs analysis b. Prepare a statement of cost of goods manufactured for the month of August c. Calculate the average cost per unit of product manufactured d. Prepare a schedule of cost of goods sold e. Prepare a traditional (absorption) income statement for Buck \& Company for the month of August. Assume that sales for the month were $272,800 and the comsiny's effective income tax rate was 34% After completing the "Aralysis" worksheet, please proceed to the "What the Numbers Mean" worksheet and respond to the additional problem requiremonts. Compl Calculate the diflerence between cost d poods manufactured and cost of goods sold. How will this amourt be reporied in the firancial streaments? Difference = hat does it mean? Question 2: Suppose thet only 4,000 units of product were sold during Augunt. What changes would you observe in the Statemert of Cost of Goods Manulactured, the Schedile of Cost of Goods Sold, and the income Statement? hat does it mean? Question 3: Mantacturing overthead for August is overapplied by $1,700. Give an example that would explain how this result is possible. Assume the $1,700 represented the final lotal for the year, would the income statement and balanoe shoet be correct? What would you do with the overapplied overhead

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