Wayne Frederick expects sales of Bison Business Solutions's line, of computer workstation furniture to equal 300 workstations (at a

sales price of $3,800 each) for 2021. The workstations' manufacturing costs include the following.

Direct materials

Direct

120?

710

per unit

Variable

340 per unit

BO

per un't

Pixed

800-2126

overhead

$14,400 per year

The selling expenses related to these workstations follow.

Variable selling expenses

Rixed gelling expenses

33 per unit

$3,100 per year

Wayne Frederick is considering how many workstations to produce in 2021. He is confident that he will be able to sell any

workstations in his 2021 ending inventory during 2022. However, Wayne Frederick does not want to overproduce as he does not have

sufficient storage space for many more workstations.

Required:

1. Complete the following income statements using absorption costing.

2. Complete the following income statements using varlable costing.

Complete this question by entering your answers in the tabs below.

Wayne Frederick expects sales of Bison Business Solutions's line of computer workstation furniture to equal 300 workstations (at a sales price of $3,800 each) for 2021. The workstations' manufacturing costs include the following. Direct materials Direct labor Variable overhead $710 per unit $ 340 per unit 80 per unit $14,400 per year $ Fixed overhead The selling expenses related to these workstations follow. Variable selling expenses $35 per unit $3,100 per year Fixed selling expenses Wayne Frederick is considering how many workstations to produce in 2021. He is confident that he will be able to sell any workstations in his 2021 ending inventory during 2022. However, Wayne Frederick does not want to overproduce as he does not have sufficient storage space for many more workstations. Required: 1. Complete the following income statements using absorption costing. 2. Complete the following income statements using variable costing Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following income statements using absorption costing. Production volume 300 320 Cost of goods sold: workstations workstations Cost of goods sold per unit Number of workstations sold 2. Complete the following income statements using variable costing. Required 1 Required 2 Complete the following income statements using absorption costing. Production volume 300 320 Cost of goods sold: workstations workstations Cost of goods sold per unit Number of workstations sold Total cost of goods sold BUSINESS SOLUTIONS Absorption Costing Income Statements Production volume Sales volume-300 Workstations 300 320 workstations workstations 0 0 0 0 Under absorption costing, can the difference between production volume and sales volume affect the reported net income (loss)? B 102112 Variable costing. Required 1 Required 2 Complete the following income statements using variable costing. BUSINESS SOLUTIONS Variable Costing Income Statements 300 320 Production volume (units) workstations workstations Sales volume (units) 300 workstations 300 workstations 0 Net income (loss) Under variable costing, can a company increase its net income by increasing production?