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complete all requirements Data table Reference Requirements 1. If GES sells all 250,000 bulbs produced, what would be the effect on operating income of using
complete all requirements
Data table Reference Requirements 1. If GES sells all 250,000 bulbs produced, what would be the effect on operating income of using each type of capacity as a basis for calculating manufacturing cost per unit? 2. Compare the results of operating income at different capacity levels when 175,000 bulbs are sold and when 250,000 bulbs are sold. What conclusion can you draw from the comparison? 3. Using the original data (that is, 250,000 units produced and 175,000 units sold) if GES had used the proration approach to allocate the production-volume variance, what would operating income have been under each level of capacity? (Assume that there is no ending work in process.) Global Energr Sover (GES), a prosucer of energy-tficient light bulbs, expects that demand wil increase markedly over the next dacade. Due to the high faxbd costs involved in the business, GES has decided to eraluato its financial pedomance using absorption costing income. The peoducton-velume variance at writen eff to coct of goods sold The vaciakio cost of producten is $2.40 per bulb. Fixed manutacturing costs are $1,015,000 peryees. Variable and fuxed seling and administrative expenses ace $0,35 per bulb sold and $260,000, respectively. Bece reo its light bulbs are currently popular with onvitonmentelly y contcious automers, GES cas sel the bulbs for $9.50 each. GES is decioing among various concepts of capacity for calcilating the cost of each une produocd (Click the ion to view the capscity informedion.) Cick the icon to vaw amocnts previousty calculated by GES: Resd the regsimpents, Aequirement 1. If GES sills all 250,000 bibbs produced, what would be the ofoct on operatng income of using eoch bype of capacily as a casis far calculating manufacturing cost par unit? (Labe each veriance os tavorable (F) or undivoratle (U).) Step by Step Solution
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