Data table \begin{tabular}{c|l} & geted to \\ ys: \end{tabular} 1. Prepare a 2020 income statement for Carpet Authority Company using variable costing. 2. Prepare a 2020 income statement for Carpet Authority Company using absorption costing. 3. Explain the differences in operating incomes obtained in requirements 1 and 4. Carpet Authority's management is considering implementing a bonus for the supervisors based on gross margin under absorption costing. What incentives will this bonus plan create for the supervisors? What modifications could Carpet Authority management make to improve such a plan? Explain briefly. Carpet Authority Company manufacturers a professional-grade vacuum cleaner and began operations in 20 price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actu (Click the icon to view the actual data for 2020 .) Read the Requirement 1. Prepare a 2020 income statement for Carpet Authority Company using variable costing. Complete the top half of the income statement first, then complete the bottom portion. (For amounts with a $0 ba Carpet Authority Company manufacturers a professional-grade vacuum cleaner and began operations in 2020. For 2020, Carpet Authority price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2020 are given as foll (Click the icon to view the actual data for 2020.) Read the requirements. Requirement 2. Prepare a 2020 income statement for Carpet Authority Company using absorption costing Complete the top half of the income statement first, then complete the bottom portion. (For amounts with a $0 balance, make sure to enter "0" in t (F) or unfavorable (U).) Operating income (loss) Requirement 3. Explain the differences in operating incomes obtained in requirements 1 and 2. The difference in operating income under absorption costing and variable costing is The 2020 operatin, under absorption costing is than the operating income under variable costing because As a result, under costing, a portion of the overhead remained in inventory and led to a cost of goods sold than under the other method. Requirement 4. Carpet Authority's management is considering implementing a bonus for the supervisors based on gross margin under absorption costing. supervisors? What modifications could Carpet Authority management make to improve such a plan? Explain briefly. What are some pros and cons of using an absorption-costing-based gross margin? What modifications could Carpet Authority management make to improve such a plan? Data table \begin{tabular}{c|l} & geted to \\ ys: \end{tabular} 1. Prepare a 2020 income statement for Carpet Authority Company using variable costing. 2. Prepare a 2020 income statement for Carpet Authority Company using absorption costing. 3. Explain the differences in operating incomes obtained in requirements 1 and 4. Carpet Authority's management is considering implementing a bonus for the supervisors based on gross margin under absorption costing. What incentives will this bonus plan create for the supervisors? What modifications could Carpet Authority management make to improve such a plan? Explain briefly. Carpet Authority Company manufacturers a professional-grade vacuum cleaner and began operations in 20 price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actu (Click the icon to view the actual data for 2020 .) Read the Requirement 1. Prepare a 2020 income statement for Carpet Authority Company using variable costing. Complete the top half of the income statement first, then complete the bottom portion. (For amounts with a $0 ba Carpet Authority Company manufacturers a professional-grade vacuum cleaner and began operations in 2020. For 2020, Carpet Authority price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2020 are given as foll (Click the icon to view the actual data for 2020.) Read the requirements. Requirement 2. Prepare a 2020 income statement for Carpet Authority Company using absorption costing Complete the top half of the income statement first, then complete the bottom portion. (For amounts with a $0 balance, make sure to enter "0" in t (F) or unfavorable (U).) Operating income (loss) Requirement 3. Explain the differences in operating incomes obtained in requirements 1 and 2. The difference in operating income under absorption costing and variable costing is The 2020 operatin, under absorption costing is than the operating income under variable costing because As a result, under costing, a portion of the overhead remained in inventory and led to a cost of goods sold than under the other method. Requirement 4. Carpet Authority's management is considering implementing a bonus for the supervisors based on gross margin under absorption costing. supervisors? What modifications could Carpet Authority management make to improve such a plan? Explain briefly. What are some pros and cons of using an absorption-costing-based gross margin? What modifications could Carpet Authority management make to improve such a plan
