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DA 1 2 . 2 Data analytics can be used to analyze product costs. Shade Inc. began operations two years ago in 2 0 2
DA Data analytics can be used to analyze product costs.
Shade Inc. began operations two years ago in It produces foot patio umbrellas that are guaranteed for years, a warranty period that exceeds its competitors. Because of a robust year in all units were completed and shipped out as of December The production manager is eligible to receive quarterly bonuses based on the company's absorption costing income before taxes. The company has chosen practical capacity to allocate fixed overhead costs. Budgeted production and sales levels, unit selling prices and unit costs of the umbrellas for the upcoming year is provided here.
Unit Total
Practical capacity production
Unit sales
Selling price $
Direct materials cost
Direct labor cost
Variable manufacturing cost
Fixed manufacturing costs $
Variable operating expenses
Fixed operating expenses
Assume unit costs of inventories have not materially differed over since the company began operations.
Instructions
There are three parts to this problem. Use Excel to perform the following:
a Prepare budgeted comparative absorption income statements at production levels of to units in increments of units.
b Create a combo chart with a clustered column chart that illustrates gross margin and income before taxes over the range of units produced, and a line chart on the secondary axis. Include a descriptive chart title and axes labels in the chart.
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