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Explain the reasons for the $29,287 difference in July ($65,099 - $35,812) between income before taxes under the two different methods. Be very specific in
Explain the reasons for the $29,287 difference in July ($65,099 - $35,812) between income before taxes under the two different methods. Be very specific in listing the elements that caused the difference.
LANDAU COMPANY Exhibit 1. Income Statements and Selected Balance Sheet Items June and July Jul June ariable Costing ariable Costing Costing Costing $865,428$865,428$931,710 $931,710 363,367 Sales Revenue Cost of sales at standard Standard gross margin Production cost variances* 484,640 80,788 337,517 527,91 521,758 409,952 568 (11,814) 8,972 (63,779 2,832 Labor Material Overhead volume Overhead spending (16,259) 12,416 1,730 3,604 (16,259) 12,416 (11,814) 8,972 3,604 2,832 $382,279 $527,672$346,163$568,333 192,883 310,351 Actual gross margin Fixed production overhead Selling and administrative Income before taxes 192,883 301,250 301,250 310,351 LANDAU COMPANY Exhibit 1. Income Statements and Selected Balance Sheet Items June and July Jul June ariable Costing ariable Costing Costing Costing $865,428$865,428$931,710 $931,710 363,367 Sales Revenue Cost of sales at standard Standard gross margin Production cost variances* 484,640 80,788 337,517 527,91 521,758 409,952 568 (11,814) 8,972 (63,779 2,832 Labor Material Overhead volume Overhead spending (16,259) 12,416 1,730 3,604 (16,259) 12,416 (11,814) 8,972 3,604 2,832 $382,279 $527,672$346,163$568,333 192,883 310,351 Actual gross margin Fixed production overhead Selling and administrative Income before taxes 192,883 301,250 301,250 310,351Step by Step Solution
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