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can you help me out, the Q7 answer is VAR I/S is $5250 lower than ABS I/S Ida Sidha Karya Company is a family-owned company
can you help me out, the Q7 answer is VAR I/S is $5250 lower than ABS I/S
Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold to a Canadian importer for $975. Selected data for the company's operations last year follow: 124% Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials nint laban 20.000 17,000 3,000 $ 270 con Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs Fixed manufacturing overhead Fixed selling and administrative WAGA SUU 60 24 $700.000 $720.000 ABSORPTION VARIABLE DM DL Var MOH FIXED MOH Unit Prod Cost Units in FG inventory Difference in Unit Prod Cost Difference in Unit Prod Cost X Diff in Income* will be: (VAR format will have lower Income) VARIABLE FORMAT INCOME STATEMENT ABS. FORMAT INCOME STATEMENT SALES VC - COGS VC - SG&A CM FC-manuf FC-SG&A Income 05 Difference 06 Q7 Q5 Compute Ida Sidha Karya Company's INCOME using a VARIABLE format I/S Q6 Compute Ida Sidha Karya Company's INCOME using an ABSORPTION COSTING format I/S Q7 What is the difference in Income between the two (enter as a positibe number to nearest dollar)Step by Step Solution
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