Fixed manufacturing overhead 400,000 There was no beginning inventory. Required: a. Compute the ending finished goods inventory under both absorption and variable costing. b. Compute the cost of goods sold under both absorption and variable costing. 4. Ewing Company planned to be in operation for three years. During the first year, it had no sales but incurred $120,000 in variable manufacturing expenses and $40,000 in fixed manufacturing expenses. In the next year, it sold half of the finished goods inventory from the previous year for $100,000 but it had no manufacturing costs. In the third year, it sold the remainder of the inventory for $120,000, had no manufacturing expenses and went out of business. Marketing and administrative expenses were fixed and totalled $20,000 each year. Required: a. Prepare an income statement for each year using absorption costing in the gross margin format. b. Prepare an income statement for each year using variable costing contribution margin format.1. Saan Corporation used the following data to evaluate their current operating system. The company sells items for $20 each and used a budgeted selling price of $20 per unit. Actual Budgeted Units sold 315,000 units 300,000 Variable costs $4,095,000 $700,000 Fixed costs $ 490,000 $ 520,000 Required: Prepare a Level 1 static-budget variance analysis using a income statement in contribution margin format. Use the following three column headings: Actual Results, Static Budget, Static-budget Variance. 2. Fatal Inc. manufactures parachutes. Fixed and variable manufacturing cost pools are allocated to each parachute using budgeted assembly hours. Budgeted assembly time is 4 hours per unit. The following table presents the amounts for July. Actual Static Results Budget Number of parachutes produced 260 240 Hours of assembly time 988 Variable overhead cost per hour $28 Variable overhead cost $34,580 Fixed manufacturing overhead cost $19,800 $20,160 Required: a Calculate the efficiency variance for variable overhead costs. b. Calculate the rate variance for variable overhead costs. C. Calculate the rate variance for fixed overhead costs. Calculate the production-volume variance for fixed overhead costs. 3. Amalgamated Glass and Mirror Inc. had sales of 37,500 units and production of 50,000 units. Other information for the year included: Direct manufacturing labour $375,000 Variable manufacturing overhead 200,000 Direct materials 300,000 Variable selling expenses 200,000 Fixed administrative expenses 200,000