_h 6: Variable Losting and Segment Reporting Seved Help Save & Exit Submit 00 2.36 points Check my work Tami Tyler opened Tami's Creations, Incorporated, a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University Tami's Creations, Incorporated Income Statement For the Quarter Ended March 31 Sales (28,100 units) $ 1,124,860 Variable expenses: Variable cost of goods sold $ 424, 310 Variable selling and administrative 171,410 595,720 Contribution margin 528, 280 Fixed expenses: Fixed manufacturing overhead 279,900 Fixed selling and administrative 261,880 $13,500) Net operating loss eBook 541.78 Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable casting and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter At this point, Ms. Tyler is manufacturing only one product-a swimsuit Production and cost data relating to the swimsuit for the first quarter follow Units produced 31,100 Units sold 28,100 Variable costs per uniti Direct materials $ 7.20 Direct labor $.6.20 MC Graw Hill G GON 2001 3 Type here to search wand 15 Di D Reporting Gi Suved Help Save & Exit Submit Check my work $ 6.20 $ 1.70 $ 6.10 Direct labor Variable manufacturing overhead Variable selling and administrative Required: 1. Complete the following: a. Compute the unit product cost under absorption costing b. What is the company's absorption costing net operating income (loss) for the quarter? c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 31,100 units but sold 34 100 units. (Assume no change in total fixed costs) a. What is the company's variable costing net operating income (loss) for the second quarter? b. What is the company's absorption costing net operating income (loss) for the second quarter? c Reconcile the variable costing and absorption costing net operating incontes for the second quarter Complete this question by entering your answers in the tabs below. Reg 10 Req 3A Reg 36 Req 1A Reg 1B Req 30 Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places) Unit product cost Regt Reg 18 > OF o to search