Greetings,

Please I want the answers for the ones in RED ONLY which are not correct. Thank you

Fanning Company incurred manufacturing overhead cost for the year as follows. Direct materials $ 38.30/unit Direct labor $ 26.60/unit Manufacturing overhead Variable $ 10.90/unit Fixed ($18.60/unit for 1, 100 units) $20, 460 Variable selling and administrative expenses $ 3,780 Fixed selling and administrative expenses $14, 800 The company produced 1,100 units and sold 600 of them at $180.70 per unit. Assume that the production manager is paid a 3 percent bonus based on the company's net income. Required a. Prepare an income statement using absorption costing. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement using absorption costing. FANNING COMPANY Income Statement (Absorption Costing) Revenues $ 108,420 Cost of goods Sold Direct materials 22,980 Direct labor O 15,960 Manufacturing overhead 11,160 x Supplies expense X 6,540 x 56,640 Gross margin 51,780 Selling and administrative expenses 14,800 x Supplies expense x 3,780 x Net income 33,200