Please help with below 1-6 questions.

hich means that the actual costs of direct material, direct labor, and manufacturing overhead are entered into work-in-process inventory. The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Lehighton's first two years of operation is as follows:

Year 1. Year 2

Sales (in units) 2,300 2,300

Production (in units) 2,800 1,800

Production costs:

Variable manufacturing costs. $13,160 $8,460

Fixed manufacturing overhead 15,960 15,960

Selling and administrative costs:

Variable 9,200 9,200

Fixed 8,200 8,200

Selected information from Lehighton's year-end balance sheets for its first two years of operation is as follows:

LEHIGHTON CHALK COMPANY

Selected Balance Sheet Information

Based on absorption costing. End of Year 1. End of Year 2

Finished-goods inventory. $5,200 $0

Retained earnings 8,380 13,860

Based on variable costing. End of Year 1. End of Year 2

Finished-goods inventory. $2,350 $0

Retained earnings 5,530 13,860

1. Reconcile Lehighton's operating income reported under absorption and variable costing, during each year, by comparing the following two amounts on each income statement:

• Cost of goods sold
• Fixed cost (expensed as a period expense)
• answer the blank and the dollar amount

Reconcile Lehighton's operating income reported under absorption and variable costing, during each year, by comparing the following two amounts on each income statement:

Cost of goods sold

Fixed cost (expensed as a period expense)

Year 1 Year 2

Cost of goods sold under absorption costing. $__________. $___________

Variable manufacturing costs under variable costing $__________. $___________

Subtotal $__________. $___________

Fixed manufacturing overhead as period expense under variable costing $__________. $___________

Total $__________. $___________

Operating income under variable costing $__________. $___________

Less: Operating income under absorption costing $__________. $___________

Difference in operating income $__________. $___________

2.What was Lehighton's total operating income across both years under absorption costing and under variable costing?

Total Operating Income

Absorption costing. _________________

Variable costing. _________________

3.What was the total sales revenue across both years under absorption costing and under variable costing?

Total Sales Revenue

Absorption costing. __________________

Variable costing __________________

4.What was the total of all costs expensed on the operating income statements across both years under absorption costing and under variable costing?

Costs Expensed

Absorption costing. ________________

Variable costing. ________________

5.Subtract the total costs expensed across both years [requirement (4)] from the total sales revenue across both years [requirement (3)]: (a) under absorption costing and (b) under variable costing.

Amount

Absorption costing. ________________

Variable costing. ________________

6.Considering the results obtained in requirements 1-5 above, select which of the following statements (is) are true by selecting an "X".

Sales revenue is different depending on the costing method used. _________

Timing is the key in distinguishing between absorption and variable costing. ______

Since Lehighton's combined operating income, across the two-year period, is the same under both absorption and variable costing, then the operating income must be the same within each year under both methods. __________

The difference between absorption and varible costing is caused by the timing with which expenses are recognized. ________