Chataqua Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $25. The variable costs of production for one case of cans are as follows:

( The answers for Req 1A & Req 1B are not complete** please complete them*)

Variable selling and administrative costs amount to $0.70 per case. Budgeted fixed manufacturing overhead is $492,000 per year, and fixed selling and administrative cost is $41,500 per year. The following data pertain to the company's first three years of operation. 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare operating income statements for Chataqua Can Company for its first three years of operations using absorption costing. Variable selling and administrative costs amount to $0,70 per case. Budgeted fixed manufacturing overhead is $492,000 per year, and fixed selling and administrative cost is $41,500 per year. The following data pertain to the company's first three years of operation. 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare operating income statements for Chataqua Can Company for its first three years of operations using variable costing