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The following information is taken from the records of the Greenland Manufacturing Company for the year ending December 31, 2012. There were no beginning or ending inventories. E: (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare a contribution income statement and an absorption income statement. If you are in doubt about any cost behavior pattern, decide on the basis of whether the total cost in question will fluctuate substantially over a wi volume. Prepare a separate supporting schedule of indirect manufacturing costs subdivided between variable and fixed costs. Begin by preparing the schedule of indirect manufacturing costs subdivided between variable and fixed costs Data Table Greenland Manufacturing Schedule of Indirect Manufacturing Costs For the Year Ended December 31, 2012 Sales $ 13,300,000 Long-term rent factory $ 100,000 Variable Costs Sales commissions 510,000 Factory superintendent's salary 30,000 Advertising 420,000 Factory supervisors' salaries 101,000 Shipping expenses 270,000 Direct materials used 4,100,000 Administrative executive salaries 100,000 Direct labor 1,800,000 Fixed Costs Administrative clerical salaries (variable) 400,000 Cutting bits used 56,000 Fire insurance on factory equipment 10,000 Factory methods research 44,000 Property taxes on factory equipment 31,000 Abrasives for machining 101,000 Indirect labor 850,000 Depreciation on factory equipment 440,000 Variable Costs Requirements Fixed Costs 1. Prepare a contribution income statement and an absorption income statement. If you are in doubt about any cost behavior pattern, decide on the basis of whether the total cost in question will fluctuate substantially over a wide range of volume. Prepare a separate supporting schedule of indirect manufacturing costs subdivided between variable and fixed costs 2. Suppose that all variable costs fluctuate directly in proportion to sales, and that fixed costs are unaffected over a wide range of sales. What would operating income have been if sales had been $12.3 million instead of $13.3 million? Which income statement did you use to help get your answer? Why? Total indirect manufacturing costs Print Done Variable Costs Abrasives for machining Administrative clerical salaries Administrative executive salaries Advertising Cutting bits used Depreciation on factory equipment Direct labor Direct materials used Factory methods research Factory superintendent's salary Factory supervisors' salaries Fire insurance on factory equipment Indirect labor Long-term rent, factory C Property taxes on factory equipment Sales commissions 4 Shipping expenses r in the input fields and then click Check Answer. The following information is taken from the records of the Greenland Manufacturing Company for the year ending December 31, 2012. There were no beginning or ending inventories. E: (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare a contribution income statement and an absorption income statement. If you are in doubt about any cost behavior pattern, decide on the basis of whether the total cost in question will fluctuate substantially over a wi volume. Prepare a separate supporting schedule of indirect manufacturing costs subdivided between variable and fixed costs. Begin by preparing the schedule of indirect manufacturing costs subdivided between variable and fixed costs Data Table Greenland Manufacturing Schedule of Indirect Manufacturing Costs For the Year Ended December 31, 2012 Sales $ 13,300,000 Long-term rent factory $ 100,000 Variable Costs Sales commissions 510,000 Factory superintendent's salary 30,000 Advertising 420,000 Factory supervisors' salaries 101,000 Shipping expenses 270,000 Direct materials used 4,100,000 Administrative executive salaries 100,000 Direct labor 1,800,000 Fixed Costs Administrative clerical salaries (variable) 400,000 Cutting bits used 56,000 Fire insurance on factory equipment 10,000 Factory methods research 44,000 Property taxes on factory equipment 31,000 Abrasives for machining 101,000 Indirect labor 850,000 Depreciation on factory equipment 440,000 Variable Costs Requirements Fixed Costs 1. Prepare a contribution income statement and an absorption income statement. If you are in doubt about any cost behavior pattern, decide on the basis of whether the total cost in question will fluctuate substantially over a wide range of volume. Prepare a separate supporting schedule of indirect manufacturing costs subdivided between variable and fixed costs 2. Suppose that all variable costs fluctuate directly in proportion to sales, and that fixed costs are unaffected over a wide range of sales. What would operating income have been if sales had been $12.3 million instead of $13.3 million? Which income statement did you use to help get your answer? Why? Total indirect manufacturing costs Print Done Variable Costs Abrasives for machining Administrative clerical salaries Administrative executive salaries Advertising Cutting bits used Depreciation on factory equipment Direct labor Direct materials used Factory methods research Factory superintendent's salary Factory supervisors' salaries Fire insurance on factory equipment Indirect labor Long-term rent, factory C Property taxes on factory equipment Sales commissions 4 Shipping expenses r in the input fields and then click Check