Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Variable Manufacturing Costs $10 per unit Fixed Manufacturing Overhead $8 per unit $6 per unit 0000 00 $4 per unit Sellina & Administrative Costs Saved

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Variable Manufacturing Costs $10 per unit Fixed Manufacturing Overhead $8 per unit $6 per unit 0000 00 $4 per unit Sellina & Administrative Costs Saved Help Sav. Selling & Administrative Costs Per Year Fixed Variable Keep Only Exclude Selling & Administrative Costs Variable: $85,000 per year ed vs Units Sold 1 of 1 Next lling & Administrative Costs Per Year Fixed Keep Only Exclude Selling & Administrative Costs Fixed: $45,000 per year ariable s Units Sold Keep Only 0 Exclude Fixed manufacturing overhead: $100,000 per year Selling & Administrative Costs Per Year S Keep Only 0 Exclude Variable Manufacturing Costs Direct materials: $7 per unit it Direct labor Direct materials Variable overhead Selling & Keep Only Exclude Variable Manufacturing Costs Direct labor: $9 per unit Direct labor ct ials Variable overhead 0000 Selling & Admin Per Y Keep Only 0 Exclude Variable Manufacturing Costs Variable overhead: $4 per unit Variable overhead Sales Price Variable Selling Price $100 Per Unit Units Produced vs Units Sold Units Sold Units Producer 0 1,000 2,000 3,000 4,000 5,000 9,000 6,000 7,000 8,000 10,00 Units Dove Help Save Exit Choch my UI tableau 1. Prepare an income statement for the year using variable costing 2. Prepare an income statement for the year using absorption costing 3. Assuming the manager's bonus is based on net income, which costing method would the manager prefer in the current year 4. Assuming the manager's bonus is tied to minimizing ending inventory, which costing method would the manager prefer in the current year? Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3 and 4 Prepare an income statement for the year using variable costing, WALTMAN CO. Income Statement (Variable Costing) For Year Ended December 31 Sales Req 1 Req 2 Req 3 and 4 Prepare an income statement for the year using variable costing. WALTMAN CO. Income Statement (Variable Costing) For Year Ended December 31 Sales $ 7 9 9 Direct materials Direct labor Variable overhead costs Variable selling and administrative expenses Fixed overhead costs 16 (Gross profit Plus: Variable costs Variable selling and administrative expenses WALTMAN CO. Income Statement (Absorption Costing) For Year Ended December 31 Sales Direct materials $ 7 Direct labor 9 Fixed overhead costs Variable overhead costs 16 Cost of goods sold Gross profit Selling general and administrative expenses Variable selling and administrative expenses Net income (loss) Prev 1 of 1 ch

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Green Energy Audit Of Buildings A Guide For A Sustainable Energy Audit Of Buildings

Authors: Giuliano Dall’O’

2013 Edition

1447161726, 978-1447161721

More Books

Students also viewed these Accounting questions