Santana Rey expects sales of Business Solutions' line of computer workstation furniture to equal $300$ wor $$3,800$ each$)$ for $2021.$ The workstations' manufacturing costs include the following.

Direct materials

Direct labor

Variable overhead

Fixed overhead

$$750$ per unit

$$320$ per unit

$$50$ per unit

$$24,000$ per year

Selling and administrative expenses for these workstations follow.

Variable

Fixed

$$30$ per unit

$$3,300$ per year

Santana is considering how many workstations to produce in $2021.$ She is confident that she will be able to $2021$ ending inventory during $2022.$ However, Santana does not want to overproduce as she does not hav for many more workstations.

Required:

Complete the following income statements using absorption costing.

Complete the following income statements using variable costing.

Which costing method, absorption or variable, yields the higher income when $320$ workstations are proc

Complete this question by entering your answers in the tabs below.

Complete the following income statements using absorption costing.

Production volume