i Data Table Sales $ Sales commissions Advertising Shipping expenses Administrative executive salaries Administrative clerical salaries (variable) Fire insurance on factory equipment Property taxes on factory equipment 15,100,000 480,000 390,000 290,000 120,000 400,000 6,000 28,000 Long-term rent, factory Factory superintendent's salary Factory supervisors' salaries Direct materials used Direct labor Cutting bits used Factory methods research Abrasives for machining Indirect labor Depreciation on factory equipment $ 70,000 25,000 104,000 3,500,000 1,800,000 54,000 38,000 101,000 600,000 390,000 i Requirements 1. Prepare a contribution income statement and an absorption income statement. If you are in doubt about any cost behavior pattern, decide on the basis of whether the total cost in question will fluctuate substantially over a wide range of volume. Prepare a separate supporting schedule of indirect manufacturing costs subdivided between variable and fixed costs. 2. Suppose that all variable costs fluctuate directly in proportion to sales, and that fixed costs are unaffected over a wide range of sales. What would operating income have been if sales had been $14.1 million instead of $15.1 million? Which income statement did you use to help get your answer? Why? The following information is taken from the records of the Underland Manufacturing Company for the year ending December 31, 2012. There were no beginning or ending inventories. (Click the icon to view the data.) Read the fequirements Requirement 1. Prepare a contribution income statement and an absorption income statement. If you are in doubt about any cost behavior pattern, decide on the basis of whether the total cost in question will fluctuate substantially over a wide range of volume. Prepare a separate supporting schedule of indirect manufacturing costs subdivided between variable and fixed costs. Begin by preparing the schedule of indirect manufacturing costs subdivided between variable and fixed costs. Underland Manufacturing Schedule of Indirect Manufacturing Costs For the Year Ended December 31, 2012 Variable Costs Fixed Costs The following information is taken from the records of the Underland Manufacturing Company for the year ending December 31, 2012. There were no beginning or ending inventories. (Click the icon to view the data.) Read the requirements JuricuUIC VI UCCL Ivanuiaccummy COSLS For the Year Ended December 31, 2012 Variable Costs Fixed Costs Total indirect manufacturing costs Choose from any list or enter any number in the input fields and then click Check