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Variable and Absorption Costing Service Company Rocky's Automotive specializes in performing automobile safety checks. After the company's first year of operations, its accountant prepared the

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Variable and Absorption Costing Service Company Rocky's Automotive specializes in performing automobile safety checks. After the company's first year of operations, its accountant prepared the following summarized data report for the safety checks for 2019: Sales (7.000 safetyChecks) 5700,000 Production costs 7,010 safety checks) Direct labor 490,700 Shop overhead Variable 112,160 Fored 70,100 Operating expenses Variable 21,030 Fored 16.000 Adet a. Prepare an income statement based on full absorption costing Only use a negative sign with your answer for net income (loss, if the answer represents a netloss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable Absorption Costing Income Statement sales Cost of Goods Sold! Repinning Inventory $ 0 Direct labor OX Shop overhead ON Less Ending inventory OX Cost of ads sold Ox Gross profit OX Operating expenses 0 x 5 DX Net Income Los b. Prepare an income statement based on variable costing Only use a negative sign with your answer for net income (los), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable. Variable Costing Income Statement 1 0 ON ON ON Variable cost of Goods Sold Beginning inventory Direct labor Variable shop overhead Less Ending inventory Variable cost of goods sold Variable operating expenses Contribution margin Faed costs Shop overhead Operating expenses Total Fixed Cost Net Income LOSS DX ON OX Ada Play OX OK 5 OX C. Assume that you must decide quickly whether to accept a special one-time order for 20 safety checks on local police cars for $85 per safety check Which income statement presents the most relevant data? vanable costing . Determine the apparent profit or loss on the special order based solely on these data Use a negative sign with your answer of the special order creates an apparentloss. Round answer to the nearest whole number

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