PLEASE help me with this problem of actual, normal, and standard costing systems with absorption and variable costing!

Need help on the income statements !!!

ACCT 327 TAKE-HOME QUIZ 3 (16S) The Divinyls Company keeps no Work in Process Inventories. At the beginning of 2015, the company had no beginning Finished Goods inventory. For 2015, the company had budgeted production and sales of 12,500 units. This figure is also the denominator level for 2015. Actual production for 2015 is 12,000 units, and actual sales for 2015 were 11,000 units. The company purchased and used the same amount of direct materials during 2015. The actual selling price for 2015 was $100 per unit. At the end of 2015, any adjustments are closed totally to Cost of Goods Sold. Unit production costs for 2015 are as follows: Direct Materials Direct Labor Variable Overhead Fixed Overhead Actual Cost Per Unit $27.50 $15.00 $ 6.75 $10.25 Standard Cost Per Unit $24.00 $14.40 $ 8.00 $ 9.60 When using standard absorption costing, the company has the following variances in 2015: Materials Price Variance$30,000 Unf. Variable OH Spending Variance $9,000 Fav. Materials Quantity Variance $12,000 Unf. Variable OH Efficiency Variance $6,000 Fav. Labor Rate Variance $18,000 Unf. Fixed OH Budget Variance $3,000 Unf. Labor Efficiency Variance $10,800 Fav. Fixed OH Production Volume Var. $4,800 Unf. For both normal and standard costing, overhead is charged to units on the basis of direct labor hours. The standard is .8 hour per unit, but the actual labor usage was .75 hour per unit. For both fixed and variable overhead, you may assume that the predetermined overhead rates PER HOUR are the same for both normal costing and standard costing. This does NOT mean that these rates are the same PER UNIT. Actual period expenses are $150,000 fixed plus $20 per unit sold variable. REQUIRED: You are to prepare, in good form, 6 income statements for 2015. The only heading that you need on each statement is to designate which costing method is used. The costing methods are: 1. Actual absorption costing 2. Actual variable costing 3. Normal absorption costing 4. Normal variable costing 5. Standard absorption costing 6. Standard variable costing On each income statement, I want to see a full Cost of Goods Sold section, from Beginning Finished Goods down through Unadjusted Cost of Goods Sold, and then show the adjustment that is needed, if any, to get Adjusted Cost of Goods Sold. Please use the same format that I used for the class example for Chapter 9. On each absorption costing income statement, I want to see Gross Profit clearly labeled, as well as net operating income. On each variable costing income statement, I want to see Contribution Margin clearly labeled, as well as net operating income. Any adjustment to Cost of Goods Sold can be shown as only one number. For example, when using standard costing, you don't have to list all of the variances that are being used to compute the adjustment to Cost of Goods Sold. Just show the one net total variance number that is relevant. Notice that you are charging overhead to production based on labor hours, not units. So, using normal costing you are going to have to compute the underallocated or overallocated overhead based on actual hours used to produce actual units. But again note that the predetermined overhead rates for normal costing and the standard overhead rates for standard costing are the same PER HOUR. However, the total overhead charged to each UNIT may differ between normal vs. standard costing. This quiz is worth 17 points, and it will be due by 4:00 next Tuesday, May 17 th, 2016. Just bring it by my office, please. You are certainly welcome to hand it in during class next Monday if you prefer