Question: please do req 3 like this format ( pic sample attched ) Energy Glow Light (EGL), a producer of energy-efficient light bulbs, expects that demand


please do req 3 like this format ( pic sample attched )
Energy Glow Light (EGL), a producer of energy-efficient light bulbs, expects that demand will increase markedly over the next decade. Due to the high fixed costs involved in the business, EGL has decided to evaluate its financial performance using absorption costing income. The production-volume variance is written off to cost of goods sold. The variable cost of production is $2.10 per bulb. Fixed manufacturing costs are $1,020,000 per year. Variable and fixed selling and administrative expenses are $0.20 per bulb sold and $250,000, respectively. Because its light bulbs are currently popular with environmentally conscious customers, EGL can sell the bulbs for $9.80 each. EGL is deciding among various concepts of capacity for calculating the cost of each unit produced. Its choices are as follows: (Click the icon to view the capacity information.) Read the requirements Requirement 1. Calculate the inventoriable cost per unit using each level of capacity to compute fixed manufacturing cost per unit. Begin by determining the formula to calculate the inventoriable cost per unit. (Abbreviations used: mfg = manufacturing, admin. = administration.) Inventoriable cost per unit Requirements 1. Calculate the inventoriable cost per unit using each level of capacity to compute fixed manufacturing cost per unit. 2. Suppose EGL actually produces 250,000 bulbs. Calculate the production-volume variance using each level of capacity to compute the fixed manufacturing overhead allocation rate. 3. Assume EGL has no beginning inventory. If this year's actual sales are 212,500 bulbs, calculate operating income for EGL using each type of capacity to compute fixed manufacturing cost per unit. Help me solve this Etext pages Get more help Check answer - Data table Theoretical capacity 850,000 bulbs Practical capacity 425,000 bulbs Normal capacity 272,000 bulbs (average expected output for the next three years) Master-budget capacity 212,500 bulbs expected production this year Print Done Yard Sales are 107.500 bulbs Cicate operating income for Bling each type of capacity to compute Calculate the operating income for each type of capacity. We will do the operating income calculations one at the beginning with theoretical Libet each variance Theoretical Practical Normal Master budget Revue $ 1 156 250 5 185250 5 1.851250 5 1056250 Less Cost of goods sold 306 250) (1 087 500) 11.162.500) (1 550 000 Production-volume variance (750.000) 375.000) 125.000 175.000 300.000 393.750 518.750 Gross margin 501250 Variable selling 146 675) 46.875) (146.875 1875 (230000) 210.000 30 000 230.000 Fixed selling $ 303 23.125 . 116175 241 ITE Operating come Help me solve this Etext pages Get more help
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
