Stuart Company incurred manufacturing overhead cost for the year as follows. Direct materials $ 38.50/unit Direct labor $ 26.20/unit Manufacturing overhead Variable $ 10.90/unit Fixed ($20.00/unit for 1,700 units) $34,000 Variable selling and administrative expenses $ 9,600 Fixed selling and administrative expenses $15,200 The company produced 1.700 units and sold 1.200 of them at $180.20 per unit. Assume that the production manager is paid a 2 percent bonus based on the company's net income. Requited a. Prepare an income statement using absorption costing b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for Internal reporting? ht noes Comniate this a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for i Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement using absorption costing, + STUART COMPANY Income Statement (Absorption Costing) Revenues Cost of goods Sold Direct materials Direct labor Manufacturing overhead Gross margin Selling and administrative expenses 0 0 $ 0 a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for inte Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement using variable costing. STUART COMPANY Income Statement (Variable Costing) Variable costs 0 $ 0 Prey 1 of 4 Score answer > 116 Saved 1 a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend Complete this question by entering your answers in the tabs below. Ts eBook Required A Required B Required a Hint Determine the manager's bonus using each approach. Which approach would you recommend for intern your intermediate calculations and final answers to the nearest whole dollar amount.) Ask Print ferences Absorption costing Variable costing Which approach is recommended?
