AutoSave Of H 2 0 Chapter 6 Application - Compatibility Mode - Word Search Sign in - 0 x Help Comments ALT File Home Insert Design Layout References Mailings Review View X Cut Times New Rom 12 - A A Aar to v Ev E LE Copy Paste Format Painter BI UB X X? APA = Clipboard Font Paragraph Share Find Sc Replace AaBb Cc AaBb C AaBbCd. AaBb AaBbCc AaB Ccl Emphasis Heading 1 1 Heading 2 1 Heading 3 1 Heading 4 1 Heading 5 Dictate Styles Editing Voice 1. Briefly describe the benefits of using the absorption costing method versus the variable costing method. 2. A company has direct materials of $15,105, direct labor of $21,450, fixed overhead costs of $22,000, variable overhead costs of $12,785, variable selling and administrative expenses of $1,623, and sales of $75,000. Using the absorption costing method, the gross profit for this company is $14,822. True or False 3. A company reports the following information: Sales $325,648.00 CEO's Salary $101,000.00 Direct Materials $ 25,000.00 Direct Labor $ 58,203.00 Secretary's Hourly Rate (160 hrs) $13.50/hr Total FedEx Charges (Based on 5 packages) $500.00 a. Using the Variable Costing method, answer the questions below based on the information above: i. What is the company's Manufacturing Margin? ii. What is the contribution margin? iii. What is the company's income from operations? Page 1 of 1 186 words Focus 3 - L - + 100% AutoSave Of H 2 0 Chapter 6 Application - Compatibility Mode - Word Search Sign in - 0 x Design Layout References Mailings Review View Help Comments ALT File Home Insert X Cut LE Copy Paste Format Painter Clipboard Times New Rom 12 - A A Aav to BI U va x, x? APA v Ev E SE IS AaBb Cc AaBb C AaBbCd. AaBb AaBbCc AaB Ccl Emphasis Heading 1 1 Heading 2 1 Heading 3 1 Heading 4 1 Heading 5 a Share Find Sc Replace n s Dictate Font Styles Editing Voice Paragraph 3. A company reports the following information: Sales $325,648.00 CEO's Salary $100,000.00 Direct Materials $ 25,000.00 Direct Labor $ 58,203.00 Secretary's Hourly Rate (160 hrs) $13.50/hr Total FedEx Charges (Based on 5 packages) $500.00 a. Using the Variable Costing method, answer the questions below based on the information above: i. What is the company's Manufacturing Margin? ii. What is the contribution margin? iii. What is the company's income from operations? b. Using the Absorption Costing method, answer the questions below based on the information above: i. What is the company's gross profit? ii. What is the company's income from operations? Page 1 of 1 186 words Focus - - - + 100%