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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 21,000 units. The company had
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 21,000 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 requirements. - X Data table Requirement 1. Prepare a 2020 income state A B Complete the top half of the income statemer field.) 1 Units produced 18,000 enter "0" in the appropriate input 2 Units sold 15,500 Variable C 3 Selling price $ 416 4 Variable costs: 5 Manufacturing cost per unit produced: Direct materials 6 $ 25 7 21 8 Direct manufacturing labor Manufacturing overhead Marketing cost per unit sold 50 9 50 10 Fixed costs: 11 $ 1,050,000 Manufacturing costs Administrative costs 12 885,800 13 Marketing costs 1,421,600 Help me solve this Etext page Check answer 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. Print Done
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