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Tech Helpers Company prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Tech Helpers provides a

Tech Helpers Company prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Tech Helpers provides a personal computer maintenance service that is sold for $100. The variable and fixed cost data are as follows:

Direct labor $25.00
Overhead
Variable cost per unit $5.00
Fixed cost $240,000
Marketing, general and administrative
Variable cost (per service contract completed) $5.00
Fixed cost (per month) $20,000

During 2019, 4,500 service contracts were started and 5,000 service contracts were completed. At the beginning of 2019, Tech Helpers had 500 service contracts in process at a per-unit cost of $90 in beginning work-in-process inventory.

a. Calculate reported income for management. Do not use negative signs with any answers.

Absorption Costing Income Statement
Sales Answer

Correct Mark 1.00 out of 1.00

Cost of Goods Sold:
Beginning Inventory Answer

Incorrect Mark 0.00 out of 1.00

Variable Costs Answer

Incorrect Mark 0.00 out of 1.00

Fixed Costs Answer

Correct Mark 1.00 out of 1.00

Less: Ending Inventory Answer

Correct Mark 1.00 out of 1.00

Cost of Goods Sold Answer

Incorrect Mark 0.00 out of 1.00

AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost

Correct Mark 1.00 out of 1.00

Answer

Incorrect Mark 0.00 out of 1.00

AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost

Correct Mark 1.00 out of 1.00

Answer

Incorrect Mark 0.00 out of 1.00

Administrative expense Answer

Incorrect Mark 0.00 out of 1.00

Net Income Answer

Incorrect Mark 0.00 out of 1.00

b. Calculate reported income for the bank. Do not use negative signs with any answers.

Variable Costing Income Statement
Sales

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