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I need help with req 2,3,6, please PA5-6 (Static) Comparing Full Absorption and Variable Costing (LO 5S-1] Dance Creations manufactures authentic Hawaiian hula skirts that
I need help with req 2,3,6, please
PA5-6 (Static) Comparing Full Absorption and Variable Costing (LO 5S-1] Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Variable Cost per Hula Skirt Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses $ 9.60 3.40 1.05 0.40 Fixed Cost per Month Fixed manufacturing overhead Fixed selling and administrative expenses $16, 125 4,95 Dance Creations charges $30 for each skirt that it sells. During the first month of operation, it made 1,500 skirts and sold 1,375. Required: 1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. 2. Complete a variable costing income statement for the last month. 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. 4. Complete a full absorption costing income statement. 6. Suppose next month Dance Creations expects to produce 1,500 hula skirts and sell 1,600. Without recreating the new income statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher? > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 Complete a variable costing income statement for last month. (Round your answers to 2 decimal places.) Dance Creations Contribution Margin Income Statement For the Last Month Sales Revenue $ 41,250.00 Selling and Administrative Expenses 19,318.75 X Variable Selling Expenses x 550.00 X 21,381.25 Contribution Margin Fixed Manufacturing Overhead Fixed General and Administrative Expense x 15,875.00 X x 4,950.00 X Net Operating Income $ 556.25 X Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 Suppose next month Dance Creations expects to produce 1,500 hula skirts and sell 1,600. Without recre statements, calculate the difference in profit between variable costing and full absorption costing. Which $ 805 Difference in profit Which would be higher? Variable Costing Required 4 Required 6Step by Step Solution
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