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Ogilvy Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations Variable cost per unit:
Ogilvy Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations Variable cost per unit: 36 $2,320,000 $ 326,000 Direct materials Fixed costs per vear: Direct labor Fixed manufacturing overhead $ 842,000 Fixed selling and administrative expenses The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced 80,000 units and sold 80,000 units. During its second year of operations, it produced 80,000 units and sold 74,200 units. In its third year, Ogilvy produced 80,000 units and sold 85,800 units. The selling price of the company's product is $80 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 $29 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 Complete this question by entering your answers in the tabs below. Req 1AReq 1B Req 2A Req 2B Req 3 Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses super-variable costing Product Cost Year 1 Year 2 Year 3
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