The Garden City Company uses an absorption-costing system based on standard costs. Variabile manufacturing cost consists of direct material cost af $3.00 per unit and other variable manufacturing costs of $1.60 per unit. The standard production rate is 20 units per machine hour. Total budgeted and actual fixed manufacturing overhead costs are $525.000. Fixed manufacturing Dvestead is allocated at $14 per machine hour based on fixed manufacturing costs of 5525,000 / 37,500 machine hours, which is the level Garden City uses as ils denominator level. The selling price is $1a per unit Variable operating (non-manufacturing) cost, which is driven by units sald, is $2 per unit. Fixed aperating (non-manufacturing) costs are $160,000. Beginning inventory in 2017 is 35.000 units, ending inventory is 40,000 units. Sales in 2017 are BA5,000 units. The same standard unit costs persisted throughout 2016 and 2017. For simplicity, assume that there are no price, splending, or efficiency variances. Click the icon to view the variable costing Income statement.) A Variable costing income statement Required Requirement 1. Prepare an income statement under throughput costing for the year anded December 31, 2017 for Garden City Company. Complete the top half of the income slalement first, and then complete the bottom portion. (Use parentheses ar a minus sign for an operating loss.) S 12,330,000 Throughput Costing S 181,000 3,174,000 Variable coating Revenues Variable cost of goods sold: Beginning inventory Variable manufacturing costs Cost of goods available for sale Deduct ending inventory Variable cost of goods sold Variable operating costs Contribution margin Fixed manufacturing costs Fixed operating costs Operating income 3,335,000 (184,000) 3,151,000 1,370,000 7,809,000 525,000 160,000 $ 7.124,000 Other coate Total other costs Print Done Requirement 2. Reconcile the difference between the contribution margin and throughput margin for Garden City in 2017. Then reconcile the operating income between variable costing and throughput costing for Garden City in 2017. (Leave unused cels blank. Use parentheses or 8 minus sign for negative amounts.) PathillaiamThamiahati The Garden City Company uses an absorption-costing system based on standard costs. Variable manufacturing oost consists of direct material cost of $3.00 per unit and other variable manufacturing costs of $1.60 par unit. The standard production rate is 20 units per machine-hour. Total budgeted and actual fixed manufacturing overhead costs are $525,000. Fixed manufacturing overhead is allocated at $14 per machine-hour based on fixed manufacturing costs of $525,000/37.500 machine-hours, which is the level Garden City uses es its denominator level. The selling price is $18 per unit. Variable operating inon-manufacturing) cost, which is driven by units sold, is $2 per unit Fixed operating (non-manufacturing) costs are $160,000. Beginning inventory in 2017 is 35,000 units, ending inventory is 40,000 units. Sales in 2017 are 685,000 units. The same standard unit costs persisted throughout 2016 and 2017. For simplicity, assume that there are no price, spending, efficiency variances. (Click the icon to view the variable costing income statement.) Resuired Requirement 2. Reconcile the cifference between the contribution margin and throughout margin for Garden City in 2017. Then reconcile the operating income between variable costing and throughput oosting for Garden City in 2017. (Leave unused cells blank. Use parentheses or a minus sign for negative amounts.) Variable costing income statement S 12,330,000 Contribution. Throughput Reconciliation margin Operating income (1) Variable costing (2) Throughout costing (3) Difference (2) - (1) Reasons for differences: Variable manufacturing costs Variable operating costs Expansing of variable manufacturing costs Requirement 3. Advocates of throughout costing say it provides managers less incentive to produce for inventory than either variable costing or, especially, absorpt Garden City use throughpul casting? Does throughout cosling provide managers less incentive to produce for inventory than either variable costing or absorplion cosling? $ Variable costing Revenues Variable cost of goods sold: Beginning inventory Variable manufacturing costs Cost of goods available for sale Deduct ending inventory Variable cost of goods sold 161,000 3,174,000 3.335,000 (184,000) 3.151,000 1.370.000 O A. Yes, because variable manufacturing costs are expensed in a later period incurred under variable and absorption costing. Therefore, managers have no opp OB. No, because variable manufacturing casts are expenses in the period incurred under variabile and absorption costing and managers have an incentive to aff OC. No, because fixed manufacturing costs are expensed in a later period incurred under throughput costing and managers have an incentive to affect operating OD. Yes, because foxed manufacturing costs are expensed in the period incurred under throughput costing. Therefore, managers have no opportunity to affect of Variable operating costs Contribution margin Fixed manufacturing costs Fbxed operating costa 7,809,000 525.000 160.000 $ 7,124.000 Operating income Under what circumstances might you recommend that Garden City use throughput oosting? Select all that apply. Print Done Choose from any list or enter any number in the input fields and then continue to the next question. The Garden City Company uses an absorption-costing system based on standard costs. Variabile manufacturing cost consists of direct material cost af $3.00 per unit and other variable manufacturing costs of $1.60 per unit. The standard production rate is 20 units per machine hour. Total budgeted and actual fixed manufacturing overhead costs are $525.000. Fixed manufacturing Dvestead is allocated at $14 per machine hour based on fixed manufacturing costs of 5525,000 / 37,500 machine hours, which is the level Garden City uses as ils denominator level. The selling price is $1a per unit Variable operating (non-manufacturing) cost, which is driven by units sald, is $2 per unit. Fixed aperating (non-manufacturing) costs are $160,000. Beginning inventory in 2017 is 35.000 units, ending inventory is 40,000 units. Sales in 2017 are BA5,000 units. The same standard unit costs persisted throughout 2016 and 2017. For simplicity, assume that there are no price, splending, or efficiency variances. Click the icon to view the variable costing Income statement.) A Variable costing income statement Required Requirement 1. Prepare an income statement under throughput costing for the year anded December 31, 2017 for Garden City Company. Complete the top half of the income slalement first, and then complete the bottom portion. (Use parentheses ar a minus sign for an operating loss.) S 12,330,000 Throughput Costing S 181,000 3,174,000 Variable coating Revenues Variable cost of goods sold: Beginning inventory Variable manufacturing costs Cost of goods available for sale Deduct ending inventory Variable cost of goods sold Variable operating costs Contribution margin Fixed manufacturing costs Fixed operating costs Operating income 3,335,000 (184,000) 3,151,000 1,370,000 7,809,000 525,000 160,000 $ 7.124,000 Other coate Total other costs Print Done Requirement 2. Reconcile the difference between the contribution margin and throughput margin for Garden City in 2017. Then reconcile the operating income between variable costing and throughput costing for Garden City in 2017. (Leave unused cels blank. Use parentheses or 8 minus sign for negative amounts.) PathillaiamThamiahati The Garden City Company uses an absorption-costing system based on standard costs. Variable manufacturing oost consists of direct material cost of $3.00 per unit and other variable manufacturing costs of $1.60 par unit. The standard production rate is 20 units per machine-hour. Total budgeted and actual fixed manufacturing overhead costs are $525,000. Fixed manufacturing overhead is allocated at $14 per machine-hour based on fixed manufacturing costs of $525,000/37.500 machine-hours, which is the level Garden City uses es its denominator level. The selling price is $18 per unit. Variable operating inon-manufacturing) cost, which is driven by units sold, is $2 per unit Fixed operating (non-manufacturing) costs are $160,000. Beginning inventory in 2017 is 35,000 units, ending inventory is 40,000 units. Sales in 2017 are 685,000 units. The same standard unit costs persisted throughout 2016 and 2017. For simplicity, assume that there are no price, spending, efficiency variances. (Click the icon to view the variable costing income statement.) Resuired Requirement 2. Reconcile the cifference between the contribution margin and throughout margin for Garden City in 2017. Then reconcile the operating income between variable costing and throughput oosting for Garden City in 2017. (Leave unused cells blank. Use parentheses or a minus sign for negative amounts.) Variable costing income statement S 12,330,000 Contribution. Throughput Reconciliation margin Operating income (1) Variable costing (2) Throughout costing (3) Difference (2) - (1) Reasons for differences: Variable manufacturing costs Variable operating costs Expansing of variable manufacturing costs Requirement 3. Advocates of throughout costing say it provides managers less incentive to produce for inventory than either variable costing or, especially, absorpt Garden City use throughpul casting? Does throughout cosling provide managers less incentive to produce for inventory than either variable costing or absorplion cosling? $ Variable costing Revenues Variable cost of goods sold: Beginning inventory Variable manufacturing costs Cost of goods available for sale Deduct ending inventory Variable cost of goods sold 161,000 3,174,000 3.335,000 (184,000) 3.151,000 1.370.000 O A. Yes, because variable manufacturing costs are expensed in a later period incurred under variable and absorption costing. Therefore, managers have no opp OB. No, because variable manufacturing casts are expenses in the period incurred under variabile and absorption costing and managers have an incentive to aff OC. No, because fixed manufacturing costs are expensed in a later period incurred under throughput costing and managers have an incentive to affect operating OD. Yes, because foxed manufacturing costs are expensed in the period incurred under throughput costing. Therefore, managers have no opportunity to affect of Variable operating costs Contribution margin Fixed manufacturing costs Fbxed operating costa 7,809,000 525.000 160.000 $ 7,124.000 Operating income Under what circumstances might you recommend that Garden City use throughput oosting? Select all that apply. Print Done Choose from any list or enter any number in the input fields and then continue to the next