Question 1 (25 Points) Macintosh Inc. produces covers for smartphones. The product is sold as single units, which have the following price and variable costs. $40 7 Sales price Direct material Direct labor Variable overhead 4 2 Budgeted fixed overhead in 2019, the company's first year of operations, was $420,000. Actual production was 30,000 units, of which 25,000 were sold. There is no beginning finished goods inventory. Macintosh Inc. incurred the following selling and administrative expenses. Fixed in 2019 Variable per unit sold Required: $65,000 3 1. Compute the product cost per container of smartphone cover under (a) variable costing and (b) absorption costing, (10 points) 2. Prepare operating income statements for 2019 using (a) absorption costing and (b) variable costing. (10 points) 3. Reconcile the operating income reported under the two methods using the shortcut method. (5 points) Question 2 (15 Points) What are the qualities of information? Define them with your own example. Question 3 (20 Points) PLC Makers Company manufactured 8,000 units during August of a PLC device. Records indicated the following: Direct labor Direct material purchased Direct material used 49,600 hr. at $12.20 per hr. 54,000 lb. at $3.85 per lb. 42,400 lb. The PLC device has the following standard prime costs: Direct material: 5 lb. at $3.50 per lb Direct labor: 6 hr. at $12.00 per hr Standard prime cost per unit $17.50 72.00 $89.50 Required: For the month of August, compute the following variances, indicating whether each is favorable or unfavorable. (4 points each) a. Direct-material price variance. b. Direct-material quantity variance. C. Direct-material purchase price variance. d. Direct-labor rate variance. e. Direct-labor efficiency variance