Ky Woo, owner of Power Potlopers a local chain of floral shops. Each shop has a on delivery. Instead of charging for delivery ton, Woo warts to set the delivery to based on the distance driven to deliver a lowers Woo wants to part the feed and table portions of her an cerating cost tot he has a better idea how delivery distance affect these con Flower Potal does a regression and on the next year's data using Excel The output generated by Elis flow mathe on to view the region analysis Road Bremen Requirement . 1. Determine the frin contention at the out to the rool regressionants to two decine Regression A E F More SUMMARY OUTPUT Repressionisti 2 3M Desember 2. Den the other www 3. Page 14.000 con regression Hand to congey Wyety SAR dar 00 08 124 7 SANOVA 55 MI So Print Done 1 00013 005 16.622.00 11 P1100 720000 13 UN LAN 267033 0023 13 -83 2 Entornybe the sad thank Check 004 0.00 15 Xt 00 Woolworth Industries manufactures and sols a single product. The controller han prepared the following income statement for the most recent year: (Click the icon to view the data) The company produced 12,000 units and sold 9,500 units during the year ending December 31, Fixed manufacturing overhead (MOH) for the year won $276,000, whilo fixed operating expenses were $82,000. The company had no beginning inventory Read the futurement Requirement 1. Will the company's operating income under variable costing be higher, lower, or the same as its operating income under absorption costing? Why? Woolworth's operating income under variable costing will be lower than its operating income under absorption costing. This is because under absorption costing some of the fixed MOH remains "trapped" on the balance sheet as part of the cost of inventory Under variable conting all fixed MOH incurred during the period is expensed as a period cost Requirement 2. Project the company's operating income under variable costing without preparing a variable costing income stagement. Begin by selecting the correct formula to reconcile the difference between the two income figures. Then enter the amounts to calculate the difference in operating income. Difference in operating income A B 1 Woolworth Industries 2 Traditional Income Statement (Absorption Costing) 3 For the Year Ended December 31 4 Sales revenue $ 608,000 5 Less: Cost of goods sold 484,500 6 Gross profit $ 123,500 7 Less: Operating expenses 68,000 $ 8 Operating income 55,500 1. Will the company's operating income under variable costing be higher, lower, or the same as its operating income under absorption costing? Why? 2. Project the company's operating income under variable costing without preparing a variable costing income statement 3. Prepare a variable costing income statement for the year
