Score: 0 of 5 pts HW Score: 63.78 % , 26.79 of 42 pts 22 of 25 (22 complete) FAM13-B4 (similar to) Question Help me The Desk PC Division has prepared comparative income statements using the variable-costing and absorption-costing methods Suppose that in 20X1 production was 16,400 computers instead of 15,200 computers, and sales were 16,200 computers. Also assume that the net variances for all variable manufacturing costs were $23,000, unfavorable. Also assume that actual fixed manufacturing costs were $1,518,000. m(Click the icon to view the comparative variable costing income statement) til yo (Click the icon to view the comparative absorption costing income statement) Read the requirements Requirement 1. Prepare income statements for 20X1 under variable costing and under absorption costing. Begin by preparing the variable costing income statement (Enter amounts in thousands of dollars) rked Desk PC Division Scot Income Statement (Variable Costing) For the Year 20X1 (in thousands of dollars) mis Sales Opening inventory, at variable standard costs of $400 Add variable cost of goods manufactured (b Available for sale (b Deduct ending inventory, at variable standard cost of $400 1 (6 Variable cost of goods sold, at standard Net flexible-budget variances for all variable costs, unfavorable 1 (b Variable cost of goods sold, at actual 1 (E Variable selling expenses, at 5 % of dollar sales 3 (sl Total variable costs charged against sales (si Contribution margin Fixed factory overhead Fxed selling and administrative expenses Total fixed expenses Operating income tEnter any number in the edit fields and then click Check Answer 2 parts remaining Clear All Check Answer e32 000 aanto Also a - X Variable-costing method 20X0 20X1 Sales, 15,200 and 17,000 cormputters, respectively $ 10,640,000 $ 11,900,000 Variable expenses Variable manufacturing cost of goods sold Opening inventory, at standard variable costs of $400 S 0 1,280,000 Add variable cost of goods manufactured at standard is 7,360,000 6,080,000 18,400 and 15,200 computers, respectively Available for sale, 18,400 computers in each year $ 7.360,000 $ 7,360,000 1.280,000 560,000 Deduct ending inventory, at standard variable cost of $400 bd S 6,080,000 Variable manufacturing cost of goods sold $ 6,800,000 bd 532.000 595,000 Variable selling expenses, at 5 % of dollar sales (t 6612,000 7.395,000 Total variable expenses (t Contribution margin $ 4,028,000 $ 4,505,000 (t Fixed expenses S 1.458.000 Fixed factory overhead (si 1,458,000 500.000 Fixed selling and administrative expenses 500,000 (si 1,958,000 Total fixed expenses 1,958,000 S 2,070,000 $ 2,547,000 Operating income, variable costing 3,200 computers at $400 $1,280,000 1,400 computers at $400$560,000 Print Done X Absorption-costing method 20X1 20X0 S 11,900,000 10,640,000 Sales Cost of goods sold: $1,568,000 0 Opening inventory, at standard absorption cost of $490 7,448,000 9,016.000 Cost of goods manufactured at standard of $490 9,016,000 9,016,000 Available for sale 686,000 1,568,000 Deduct: ending inventory at standard absorption cost of $490 8,330,000 7,448,000 Cost of goods sold, at standard 3,570.000 3,192,000 Gross profit at standard 90,000 198,000 U F Production-volume variance" 3,480,000 3,390,000 Gross margin or gross profit, at "actual 1,032,000 1,095,000 Selling and administrative expenses S 2,385,000 2,358,000 S Operating income $ 400 Variable cost 90 Fbxed cost ($1,458,000/16,200) $ 490 Standard absorption cost Computation of production-volume variance based on expected volume of production of 16,200 computers: 20X0 $ 198,000 F (18,400-16,200) x $90 90,000 (15.200-16,200) x $90 20X1 (33,600-32,400) x $90 F Two years together S 108,000 U Unfavorable. F Favorable Print Done ver - X i Requirements 1. Prepare income statements for 20X1 under variable costing and under absorption costing 2. Explain why operating income was different under variable costing and absorption costing. Show your calculations Print Done