Energy Glow Light (EGL), a producer of ecerg-effciont light bulbs, oxpects that demand will increase maredy over the next decade. Due to the high fwed costs involved in the Bueiness, EGL has decided to evaluste its fnancial performance using absorption costing income. The production-volume variance is writen of to cost of goods sold. The varible cost of preduction is $2. 70 per bub. Fived manulactuing costs aro $1,020,000 por year. Variable and ford seling and administrative expenses ane $0.20 per bub sold and $290,000, respectively. Because its light bulbs are currerty popular with environmentally conscious customers, EGL can sell the bulbs for $9.60 euch. EGL is deciding among various concepts of capacity for caloulating the cost of each unt produced. its choices are as follow: (Click the icon to view the capacity information) Read the ragurements Requirement 1. Calculate the imventorable cost per unt using each level of capacly to compute fxed manufactumg cout per unt. Foed mfo overtead rate Vansule production cos! = Inventoriable cost per un Now calculate the imventoriable cost per unt at each level of capacify Data table Requirements 1. Calculate the inventoriable cost per unit using each level of capacity to compute fixed manufacturing cost per unit. 2. Suppose EGL actually produces 250,000 bulbs. Calculate the production-volume variance using each level of capacity to compute the fixed manufacturing overhead allocation rate. 3. Assume EGL has no beginning inventory. If this year's actual sales are 212,500 bulbs (and production is 250,000 bulbs), calculate operating income for EGL using each type of capacity to compute fixed manufacturing cost per unit. Energy Glow Light (EGL); a producer of energy-etficient ight bulbs, expects that demand will increase markedly over the next decede. Due to the high fxed costs invelved in the business, EGL has decided to evaluate its financial performance using absorption costing income. The productionvolume variance is wertion of to cost of goods sold. The variable cost of production is $2.70 per bub. Fived manutacturing costs are $1,020,000 per year. Variable and fired seling and administrative expenses are $0.20 per bulb sold and $200,000, respectively. Because its ight bube ase curmently popular with environmentaly conscious evstomers, EGL can seli the bubs for $9.60 each. EGt is deciding among various concepts of capacity for calculating the cost of each unit produced, th thoices are as follows (Click the icon to verw the capecty information.) Requirement 1. Calculate the inventoriable cost per unit using each level of capacity to compute fixed manufacturing cost per unit. Begin by determining the formula to calculate the inventoriable cost per unit. (Abbreviations used: mfg = manufacturing, admin. = administration.) Fixed m ig overhead rate Variable production cost = Inventoriable cost per unit Now calculate the inventoriable cost per unit at each level of capacity