Question
Question 9 Following is selected data for the year ended December 31, 2020 for Fabio Manufacturing Inc. Selling price: $30.30 per unit Units produced 310,300;
Question 9
Following is selected data for the year ended December 31, 2020 for Fabio Manufacturing Inc.
Selling price: $30.30 per unit
Units produced 310,300; sold 273,300; beginning inventory zero
Variable unit costs:
Manufacturing $21.00 (direct materials $10.40, direct labour $6.40, and variable overhead $4.20);
Selling and administrative expenses $5.80
Fixed costs:
Manufacturing overhead $441,180, based on a budgeted volume of 326,800 units
Selling and administrative expenses $541,500
The company expenses production volume variances to cost of goods sold in the accounting period in which they occur.
Calculate a normal-costingincome statementfor 2020.
(Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)
Fabio Manufacturing Inc.
Income Statement
For the Year Ended December 31, 2020
Absorption Costing Using Normal Costing
Sales ____________
Cost of Goods Sold ____________
Favourable Volume Variance ____________
Gross Margin ____________
Variable Selling and Administrative Expenses ____________
Fixed Selling and Administrative Expenses ____________
Net income / (Loss) ____________
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