Variable and Absorption CostingService Company 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 $103. The variable and fixed cost data are as follows:

Direct labor				$25.00
Overhead
Variable cost per unit				$3
Fixed cost				$240,000
Marketing, general and administrative
Variable cost (per service contract completed)				$3
Fixed cost (per month)				$20,000

During 2015, 4,000 service contracts were started and 5,000 service contracts were completed. At the beginning of 2016, Tech Helpers had 1,000 service contracts in process at a per-unit cost of $93 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
Cost of Goods Sold:
Beginning Inventory			$Answer
Variable Costs			Answer
Fixed Costs			Answer
Less: Ending Inventory			Answer
Cost of Goods Sold				Answer
AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost				Answer
AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost				Answer
Administrative expense				Answer
Net Income				$Answer

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

Variable Costing Income Statement
Sales				$Answer
Cost of Goods Sold:
Beginning Inventory			Answer
Variable Costs			Answer
AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariable selling expense			Answer
Variable cost of goods sold				Answer
AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariable selling expense				Answer
AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariable selling expense				Answer
Fixed costs:
AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariable selling expense			Answer
Administrative Expense			Answer
Total Fixed Cost				Answer
Net Income				$Answer

CLICK HERE TO REVIEW LEARNING OEECTINES QUESTION 3 Nat compiete Poincs out of 3.00 P nag queston Variable and Absorption Costing-Service Company Tech Helpers Company prepares a varlable costing income statement for internal management and an absorption costing income statement for its bank, Tech Helpers provides a personal computer mainteriance service that is sold for $103, The variable and fxed cost data are as follows: 2.00 Overheed Veriable cast per unit Flwad cost Marketing ceneral and admiristrsive Variable cost (per senice cantract campleted bxed cast lpemonh) $3 5240,000 20,000 During 2015, 4,000 service contracts were started and 5,000 service contracts were completed. At the beginning of 2016, Tech Helpers had 1,000 service controcts in process at a per-unit cost of $93 in beginning work-in-process inverntory a. Calculate reported income for management. Do not use negative signs with any answers Absorption Costing Income Statement Sales Cos af Goods Sold Deginnirg Invencary Variable Costs Fixed Casts Less: Frelin Inventary Cost of Goods Sald b. Calculate reported income for the bank Do not use negative signs with any answers Variable Costing Income Statement Cos: at Goods Sold: Beginning invencary Varisble Costs erlable cost of goods sold Administrathe Expense Tatal Fixed Cos Net Incame Check