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please do all parts, 1-6 Baker Company manufacturers a professional-grade vacuum cleaner and began operations in 2020 . For 2020 , Baker budgeted to produce
please do all parts, 1-6
Baker Company manufacturers a professional-grade vacuum cleaner and began operations in 2020 . For 2020 , Baker budgeted to produce and sell 28,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2020 are given as follows: Requirement 1. Prepare a 2020 income statement for Baker Company using variable costing. Complete the top half of the income statement first, then complete the bottom portion. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field.) Data table Requirements 1. Prepare a 2020 income statement for Baker Company using variable costing. 2. Prepare a 2020 income statement for Baker Company using absorption costing. 3. Explain the differences in operating incomes obtained in requirements 1 and 2. 4. Baker's management is considering implementing a bonus for the supervisors based on gross margin under absorption costing. What incentives will this bonus plan create for the supervisors? What modifications could Baker management make to improve such a plan? Explain briefly. Baker Company manufacturers a professional-grade vacuum cleaner and began operations in 2020 . For 2020 , Baker budgeted to produce and sell 28,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2020 are given as follows: Requirement 1. Prepare a 2020 income statement for Baker Company using variable costing. Complete the top half of the income statement first, then complete the bottom portion. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field.) Data table Requirements 1. Prepare a 2020 income statement for Baker Company using variable costing. 2. Prepare a 2020 income statement for Baker Company using absorption costing. 3. Explain the differences in operating incomes obtained in requirements 1 and 2. 4. Baker's management is considering implementing a bonus for the supervisors based on gross margin under absorption costing. What incentives will this bonus plan create for the supervisors? What modifications could Baker management make to improve such a plan? Explain brieflyStep by Step Solution
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