Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please read the question carefully and provide clear answer please Benson Company incurred manufacturing overhead cost for the year as follows. Direct materials $ 38.80/unit

please read the question carefully and provide clear answer please
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Benson Company incurred manufacturing overhead cost for the year as follows. Direct materials $ 38.80/unit Direct labor $ 27.50/unit Manufacturing overhead Variable $ 11.80/unit Fixed ($18.60/unit for 1,700 units) $31,620 Variable selling and administrative expenses $ 7,440 Fixed selling and administrative expenses $14,100 The company produced 1700 units and sold 1,200 of them at $180.70 per unit. Assume that the production manager is paid a 1 percent bonus based on the company's net income. Required 0. Prepare an income statement using absorption costing b. Prepare an income statement using vartable costing c. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? Required A Required B Required Prepare an income statement using absorption costing. BENSON COMPANY Income Statement (Absorption Costing) ok mit Cost of goods Sold int cences + 0 $ 0 $ 0 Required a Required B Required Prepare an income statement using variable costing. BENSON COMPANY Income Statement (Variable Costing) Variable costs 0 $ 0 Required A Required B Required Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? your intermediate calculations and final answers to the nearest whole dollar amount.) OK Absorption costing Variable costing Which approach is recommended? rences

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analytical Corporate Finance

Authors: Angelo Corelli

1st Edition

3319395483, 9783319395487

More Books

Students also viewed these Accounting questions