Chapter 6: Applying Excel
Data
Selling price per unit	$347
Manufacturing costs:
Variable per unit produced:
Direct materials	$129
Direct labor	$68
Variable manufacturing overhead	$35
Fixed manufacturing overhead per year	$117,600
Selling and administrative expenses:
Variable per unit sold	$9
Fixed per year	$62,000
	Year 1	Year 2
Units in beginning inventory	0
Units produced during the year	2,800	2,100
Units sold during the year	2,400	2,400

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?

(b) What is the net operating income (loss) in Year 2 under absorption costing?

(c) What is the net operating income (loss) in Year 1 under variable costing?

(d) What is the net operating income (loss) in Year 2 under variable costing?