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Dirt - B - Gone Company manufacturers a professional-grade vacuum cleaner and began operations in 2020. For 2020, Dirt - B - Gone budgeted to

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Dirt - B - Gone Company manufacturers a professional-grade vacuum cleaner and began operations in 2020. For 2020, Dirt - B - Gone budgeted to produce and sell 28,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2020 are given as follows: (Click the icon to view the actual data for 2020.) Read the reguirements. Data table Data table Requirements 1. Prepare a 2020 income statement for Dirt-B - Gone Company using variable costing. 2. Prepare a 2020 income statement for Dirt-B - Gone Company using absorption costing. 3. Explain the differences in operating incomes obtained in requirements 1 and 2. 4. Dirt - B - Gone'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 Dirt - B - Gone management make to improve such a plan? Explain briefly. Requirement 1. Prepare a 2020 income statement for Dirt - B - Gone Company using variable 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 the appropriate input field.) Variable cost of goods sold: Beginning inventory Variable manufacturing costs Ending inventory

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