Chataqua Can Company manufactures metal cans used in the food processing industry. A case of cans sells for $35. The variable costs of production for one case of cans are as follows: Direct material Direct labor Variable manufacturing overhead Total variable manufacturing cont per case $ 9.00 3.50 0.00 $20.50 Variable selling and administrative costs amount to $0,50 per case. Budgeted fixed manufacturing overhead is $552,000 per year, and fixed selling and administrative cost is $46,500 per year. The following data pertain to the company's first three years of operation. Planned production (in units) Finished-goods Inventory (in units), January 1 Actual production in unita) lialen in units) Finished-goods Inventory (in unita). December 31 Year 1 Year 2 92,000 92.000 0 0 92.000 92,000 92.000 63,000 29.000 Year) 92.000 29,000 92.000 106,500 14.500 Actual costs were the same as the budgeted costs Required: 1. Prepare operating income statements for Chataqua Can Company for its first three years of operations using a. Absorption costing b. Variable costing. 2. Reconcile Chataque Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method 3. Suppose that during Chatequa's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. a. What will be the difference between absorption costing income and variable-costing income in year 4? b. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing? Comalate this question by entering our answers in the tabs below years of operation. Use the shortcut method. 3. Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. a. What will be the difference between absorption costing income and variable-costing income in year 4? b. What will be the relationship between total operating income for the four-year period as reported under absorption and variable - costing? Complete this question by entering your answers in the tabs below. Reg 1A Reg JA Red 10 Reg 2 Reg 3B Prepare operating income statements for Chataqua Can Company for its first three years of operations using absorption costing Year 1 Year 2 Year Variable manufacturing costs os 0 5 0 Selling and Administrative Expenses $ 0 $ 0 $ 0 Reg 18 > years of operation. Use the shortcut method. 3. Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expecte and the company ends the year with no inventory on hand. a. What will be the difference between absorption-costing income and variable-costing income in year 4? b. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing? Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 Reg 2 Reg 3A Req 38 Prepare operating income statements for Chataqua Can Company for its first three years of operations using variable costing Year 1 Year 2 Year 3 Variable expenses $ 0 $ 0 $ 0 Food expenses OS $ O 2. Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method. 3. Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expecte and the company ends the year with no inventory on hand. a. What will be the difference between absorption-costing income and variable-costing income in year 4? b. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2 Req 3A Reg 38 Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three Years of operation. Use the shortcut method. Year Change in inventory in units) Predetermined fixed overhead rate Difference in foxed overhead expensed under absorption and variable costing 1 2 Actual costs were the same as the budgeted costs. Required: 1. Prepare operating income statements for Chataqua Can Company for its first three years of operations using: a. Absorption costing b. Variable costing 2. Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method 3. Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. a. What will be the difference between absorption costing income and variable-costing income in year 4? b. What will be the relationship between total operating income for the four year period as reported under absorption and variable costing? Complete this question by entering your answers in the tabs below. Req IA Reg 16 Reg 2 Red Req38 Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. What will be the difference between absorption-costing income and variable costing Income in year 4? Dino in reported Income & Reg 2 Rog 3 > Required: 1. Prepare operating income statements for Chataqua Can Company for its first three years of operations using a. Absorption costing b. Variable costing 2. Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method. 3. Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected. - What will be the difference between absorption costing income and variable-costing income in year 4? b. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing? Complete this question by entering your answers in the tabs below. RIA Reg 16 Red 3A Reg 38 Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hind. What will be the relationship between total operating Income for the four-year period as reported under absorption and variable costing? Total operating income will be higher under variable costing Total operating income will be higher under absorption costing Total Operating income will be same under absorption and variable costing RegJA