Just lost in general. Need help getting started with #1. Not sure how to begin

3/7/2017 Chapter 5 Accounting 2302 Principles of Accounting II Managerial: SPRING 2017 17824 - 008 7:30 PM Chapter 5 1. Lauren Hunt instructions | help value: 3.00 points 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 Fixed Cost per Month Fixed manufacturing overhead Fixed selling and administrative expenses $ 9.60 3.40 1.05 0.40 $15,875 4,950 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. (Round your answer to 2 decimal places.) Total Variable Mfg Cost/Unit 2. 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 Contribution margin Net Operating Income http://ezto.mheducation.com/hm.tpx?_=0.5389983051693649_1488938284364 1/2 3/7/2017 Chapter 5 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for last month. (Round your answer to 2 decimal places.) Total Absorption Cost/Unit 4. Complete a full absorption costing income statement. (Round your intermediate calculations and the final answers to 2 decimal places.) Dance Creations Full Absorption Income Statement For Last Month Less: Cost of Goods Sold Gross Margin Net Operating Income 6. Suppose next month Dance Creations expects to produce 1,200 hula skirts and sell 1,300. Without any calculations, decide whether variable or full absorption costing will show a higher profit. Full Absorption Costing Variable Costing rev: 10_03_2016_QC_CS63139 References eBook & Resources Financial Statements Difficulty: 3 Hard Learning Objective: 05S1 Compare variable costing to full absorption costing. Check my work 2017 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx?_=0.5389983051693649_1488938284364 2/2