Ogilvy Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: 32 Variable cost per unit. Direct materials Pixed coats per year! Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses $1,900,000 $ 851,000 $302,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced 76,000 units and sold 76,000 units. During its second year of operations, it produced 76,000 units and sold 71,000 units. In its third year, Ogilvy produced 76,000 units and sold 81,000 units. The selling price of the company's product is $73 per unit. Required: 1. Assume the company uses super-variable costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1 Year 2, and Year 3. 2. Assume the company uses a variable costing system that assigns $25 of direct labor cost to each unit produced: a. Compute the unit product cost for Year 1 Year 2, and Year 3. b. Prepare an income statement for Year 1 Year 2, and Year 3. 3. Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1, 2 and 3. (Enter any losses or deductions as a negative value.) Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Reg 28 Reg 3 Compute the unit product cost for Year 1 Year 2, and Year 3. Assume the company uses super-variable costing. Unit Product Cost Year 1 Year 2 Reg 1A Reg 18 Reg 2A Req 28 Reg 3 Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses super-variable costing. Ogilvy Company Super Variable Costing Income Statement Year 1 Year 2 Year 3 Fixed expenses Total foxed expenses Net operating incomefloss) Req 1A Reg 1B Reg 2A Req 2B Reg 3 Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses a variable costing system that assigns $25 of direct labor cost to each unit produced. Unit Product Cost Year 1 Year 2 Year 3 Reg 1A Reg 1B Req 2A Reg 28 Reg 3 Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses a variable costing system that assigns $25 of direct labor cost to each unit produced. Ogilvy Company Variable Costing Income Statement Year 1 Year 2 Year 3 Fixed expenses: Total foxed expenses Net operating income (loss) Reg 1A Reg 1B Reg 2A Reg 28 Reg 3 Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1, 2, and 3. (Enter any losses or deductions as a negative value.) Year 1 Year 2 Year 3 Super variable costing net operating income (loss) Variable costing net operating income (loss)
