Super Clean Company manufacturers a professional-grade vacuum cleaner and began operations in 2017. For 2017, Super Clean budgeted to produce and sell 26,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2017 are given as follows: E (Click the icon to view the actual data for 2017.) Data Table hy using variable costing. In portion. (For amounts with a $0 balance, make sure Units produced 24,000 Units sold 21,500 Selling price $ 416 Variable costs: Manufacturing cost per unit produced: Direct materials $ 26 21 Direct manufacturing labor Manufacturing overhead Marketing cost per unit sold 50 42 Fixed costs: Manufacturing costs $ 1,300,000 Administrative costs 910,500 1,393,700 Marketing costs bntinue to the next question. ? Print Done Screenshot Super Clean Company manufacturers a professional-grade vacuum cleaner and began operations in 2017. For 2017, Super Clean budgeted to produce and sell 26,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2017 are given as follows: (Click the icon to view the actual data for 2017.) Read the requirements. Requirement 1. Prepare a 2017 income statement for Super Clean Company using variable costing. Complete the top half of the income statement first, then complete the bottom portion. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Variable Costing Allocated fixed manufacturing costs Beginning inventory Contribution margin Cost of goods available for sale Ending inventory Fixed administrative costs Fixed manufacturing costs Fixed marketing costs Gross margin Revenues Variable cost of goods sold Ch Variable manufacturing costs S Varia sts Screenshot it fields and then continue to the next question. ? Variable Costing Variable cost of goods sold: Operating income / (loss) Choose from any list or enter any number in the input fields and then continue to the next question. ? Save f Screenshot Requirement 2. Prepare a 2017 income statement for Super Clean Company using absorption costing. Complete the top half of the income statement first, then complete the bottom portion. (For amounts with a $0 balance, make sure to e Absorption Costing Choose from any list or enter any number in the input fields and then continue to the next question. Screenshot Save for Later Operating income/(loss) Requirement 3. Explain the differences in operating incomes obtained in requirements 1 and 2. The 2017 operating income The difference in operating income under absorption costing and variable costing is $ under absorption costing is than the operating income under variable costing because As a result, under v overhead remained in inventory and led to a costing, a portion of the cost of goods sold than under the other method. Requirement 4. Super Clean's management is considering implementing a bonus for the supervisors based on gross margin under absorption costing. What incentives will this bonus plan create for the supervisors? What modifications could Super Clean management make to improve such a plan? Explain briefly. What incentives will this bonus plan create for the supervisors? What modifications could Super Clean management make to improve such a plan? Choose from any list or enter any number in the input fields and then continue to the next question. ? Screenshot Save for Later
