1 Chapter 6: Applying Excel 2 3 Data 4 Selling price per unit 5 Manufacturing costs 6 Variable per unit produced 7 Direct materials 8 Direct labor 9 Variable manufacturing overhead 10 Fixed manufacturing overhead per year 11 Selling and administrative expenses 12 Variable per unit sold 13 Fixed per year $389 $145 $78 $40 $88,400 $9 $45,000 Year 1 Year 2 16 Units in beginning inventory 17 Units produced during the year 18 Units sold during the year 19 2,600 2,100 1,700 2,100 If your formulas are correct, you should get the correct answers to the following questions (a) What is the net operating income (loss) in Year 1 under absorption costing? Net operating income Net operating loss