(please begin with excel and answer the questions listed below and complete the excel sheet also. Thanks a lot.)

1. Begin with ICEChapter13.xlsx a. Analyze change of production volume to see change in operating income. i. Increase production by 1000 at a time and note that the production variance decreases does what? ii. What happens when production increases (with constant sales)? ii. What happens if initial or ending inventory is present? iv. Which method (variable or absorption) is required for external and tax purposes? b. Under a ed vs. Overa ed i. In the example at production 15K, did we over- or under-apply the overhead? ii. Is this over/under applied OH favorable or unfavorable? And Why? c. Reconcile the extra 7000 on our books i. What is the 7000? E.g. what type of cost is it or which accounts should take or lose it? 1. Begin with ICEChapter13.xlsx a. Analyze change of production volume to see change in operating income. i. Increase production by 1000 at a time and note that the production variance decreases does what? ii. What happens when production increases (with constant sales)? ii. What happens if initial or ending inventory is present? iv. Which method (variable or absorption) is required for external and tax purposes? b. Under a ed vs. Overa ed i. In the example at production 15K, did we over- or under-apply the overhead? ii. Is this over/under applied OH favorable or unfavorable? And Why? c. Reconcile the extra 7000 on our books i. What is the 7000? E.g. what type of cost is it or which accounts should take or lose it