Operating income reconciliation: a. Prepare a schedule that outlines the variances for each category of the contribution

income statement that reconciles actual operating income from 2016 to 2017.

Wheels of Fortune Operating Income Statement Bicycles Sold 4,500 4,500 2016 Per Bicycle 2017 Per Bicycle Sales Dollars $ 18,675,000 $4,150,00 $ 10,575,000 $2,350,00 $ $ Direct Material Costs Direct Labor Costs Variable Overhead Total Variable Costs 10,260,000 1,503,000 540,000 12.303,000 $2,280.00 334.00 120,00 $2,734,00 6,688,000 1.473,120 447,750 8,608,870 $1.486.22 327.36 99.50 1.913.08 $ $ $ 6,372,000 34.12% $1,416.00 $ Contribution Margin Contribution Margin Percent $436.92 1,966, 130 18.59% Selling & General Administration $ 615,000 136.67 $ 765,000 170.00 Operating Income 5.757,000 $1,279.33 $ 1,201,130 $266.92 Wheels of Fortune Standard Costs Summary of Standard Costs Professional | Bicycle Kit per unit S 3,000S Direct labor hours per bicycle 10 Direct labor male per hour s 40 S Variable overhead rate per bicycle S 150 S Novice 600 6 30 Wheels of Fortune Summary of Actual Costs Professional 2016 2017 Bicycle Kit: Usage 3.150 1,400 Price 3.000 IS3.200 Direct labor hours 31.500 15,525 Direct labor rate per hour 40S 44 Variable overhead per bicycle 150S 180 Novice Bicycle Kit: Usage Price Direct labor hours Direct labor rate per hour Variable overhead per bicycle 2016 2017 1,3503 .200 600 IS 690 8.100 20.790 30 IS 50 S 65