Question: 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Direct materials :

1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing.

Direct materials : 7$ per unit

Direct labor : 9$ per unit

Variable overhead: 4$ per unit

Fixed manufacturing overhead: 100,000$ per year

Variable: 85,000$ per year Fixed: 45,000$ per year

Units sold: 7,500 units Units produced: 10,000

Selling price: 100$ per unit

1. Prepare an income statement for the year using variable costing. 2.Prepare an income statement for the year using absorption costing. Direct materials

Prepare an income statement for the year using variable costing. Prepare an income statement for the year using absorption costing

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