PR $8-35($Algo$)$ Variable$-$Costing and Absorption$-$Costing Income Statements $($LO $8-2,8-3,8-4,8-6)$ Required:

Calculate the product cost per sleeping bag under $($a$)$ absorption costing and $($b$)$ variable costing.

$2-$a$.$ Prepare an operating income statement for the year using absorption costing.

$2-$b$.$ Prepare an operating income statement for the year using variable costing.

Reconcile reported operating income under the two methods using the shortcut method.

Complete this question by entering your answers in the tabs below.

Req$2A$

Req $3$

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

Note: Do not round intermediate calculations. Required:

Calculate the product cost per sleeping bag under $($a$)$ absorption costing and $($b$)$ variable costing.

$2-$a$.$ Prepare an operating income statement for the year using absorption costing.

$2-$b$.$ Prepare an operating income statement for the year using variable costing.

Reconcile reported operating income under the two methods using the shortcut method.

Complete this question by entering your answers in the tabs below.

Req $2B$

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

Note: Do not round intermediate calculations. Required:

Calculate the product cost per sleeping bag under $($a$)$ absorption costing and $($b$)$ variable costing.

$2-$a$.$ Prepare an operating income statement for the year using absorption costing.

$2-$b$.$ Prepare an operating income statement for the year using variable costing.

Reconcile reported operating income under the two methods using the shortcut method.

Complete this question by entering your answers in the tabs below.

Req $2$A

Reconcile reported operating income under the two methods using the shortcut method.

Note: Round your predetermined fixed overhead rate to $2$ decimal places.

Great Outdoze Company manufactures sleeping bags, which sell for $$67\mathrm{.}10$ each. The variable costs of production are as follows:

Direct material $ $18\mathrm{.}80$

Direct labor $9\mathrm{.}10$

Variable manufacturing overhead $6\mathrm{.}60$

Budgeted fixed overhead in $20$x$1$ was $$216,000$ and budgeted production was $27,000$ sleeping bags. The year$$s actual production was $27,000$ units, of which $24,800$ were sold. Variable selling and administrative costs were $$1\mathrm{.}30$ per unit sold; fixed selling and administrative costs were $$26,000.$

Required:

$1.$ Calculate the product cost per sleeping bag under $($a$)$ absorption costing and $($b$)$ variable costing.

$2-$a$.$ Prepare an operating income statement for the year using absorption costing.

$2-$b$.$ Prepare an operating income statement for the year using variable costing.

$3.$ Reconcile reported operating income under the two methods using the shortcut method.Required:

Calculate the product cost per sleeping bag under $($a$)$ absorption costing and $($b$)$ variable costing.

$2-$a$.$ Prepare an operating income statement for the year using absorption costing.

$2-$b$.$ Prepare an operating income statement for the year using variable costing.

Reconcile reported operating income under the two methods using the shortcut method.

Complete this question by entering your answers in the tabs below.

Req $2$B

Req $3$

Calculate the product cost per sleeping bag under $($a$)$ absorption costing and $($b$)$ variable costing.

Note: Do not round intermediate calculations. Round your final answers to $2$ decimal places.