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?

2. Change all of the numbers in the data area of your worksheet so that it looks like this: . B C 1 Chapter 6: Applying Excel 2 3 Data 4 $ 368 5 Selling price per unit Manufacturing costs: Variable per unit produced: 6 7 Direct materials $ 141 8 Direct labor 71 9 37 $ 160,000 9 Variable manufacturing overhead 10 Fixed manufacturing overhead per year 11 Selling and administrative expenses: 12 Variable per unit sold 13 Fixed per year 14 $ 8 $ 75,000 15 Year 1 Year 2 16 0 17 Units in beginning inventory Units produced during the year Units sold during the year 3,200 2,700 2,500 2,700 18