Variahle and Ahserption Costing$-$Service Company

Silicon Bytes Company prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Silicon Bytes provides a personal computer maintenance service that is sold for $$140.$ The variable and fixed cost data are as follows: $q,$

$$ Administrative

$$ Direct Labor

$[]$ Manufacturing Overhead

During the year, $10,000$ service contracts were signed and $9,600$ service contracts were completed. Silicon Bytes had no service contracts at the beginning of the year.

a$.$ Calculate reported income for management.

$*$Note: Do not use negative signs with any of your answers.

$\backslash$table$[[$Absorption Costing Income Statement,$],[,$$$,0],[$Cost of Goods Sold:,,$],[$Beginning Inventory,$0,],[$Variable Costs,$0,],[$Fixed Costs,$0,],[$Less: Ending Inventory,$0,],[$Cost of Goods Sold,,$0],[,,0],[,,0]]$

b$.$ Calculate reported income for the bank.

$*$Note: Do not use negative signs with any of your answers.

$1.$

$\frac{4}{26}\frac{?}{24},7$:$41PM$

Variable Costing Income Statement

$\backslash$table$[[$Variable Costing Income Statement,$],[$Cost of Goods Sold:,$$,0],[$Beginning Inventory,$0,],[$Variable Costs,$0,],[$Less: Ending Inventory,$0,],[$Variable Cost of Goods Sold,,$0],[,,0],[$Fixed Costs:,,$0],[$Administrative expense,$0,0],[$Total Fixed Costs,$0,0]]$