Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 400 bikes were produced and 240 were sold. Income statement information under variable costing follows. Sales (240 $1,775) Variable cost of goods sold (240 $600) Variable selling and administrative expenses (240 $65) Contribution margin: Fixed overhead Fixed selling and administrative expenses Income Prepare the company's income statement under absorption costing. Answer is not complete. HAYEK BIKES Income Statement (Absorption Costing) $ 426,000 144,000 15,600 266,400 68,000 75,000 $123,400 Salos Cost of goods sold Gross profit Selling and administrative expenses Income 0000 426,000 426.000 90,600 $ 335,400 Required information [The following information applies to the questions displayed below.) Barnes Company reports the following for its product for its first year of operations. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 32 per unit $ 22 per unit $12 per unit $ 60,000 per year $2 per unit $ 24,000 per year The company sells its product for $150 per unit. Compute contribution margin using variable costing assuming the company (a) produces and sells 2,400 units and (b) produces 3,000 units and sells 2,400 units. Answer is not complete. Contribution margin using variable costing (a) 2,400 Units Produced (b) 3,000 Units Produced and 2,400 and 2,400 Units Sold- Units Sold Sales Variable expenses s 360,000 $ 360,000 Variable cost of goods sold 0 Variable selling and administrative expenses (4,800) Contribution margin $ 196,800 $ (4,800) 196,800 O Return to