Variable manufacturing Cost -

Direct material: $7 per unit

Direct labor: $9 per unit

Variable overhead: $4 per unit

Fixed manufacturing overhead: $100,000 per year

Selling and administrative cost :

Variable: $85000 per year

Fixed: $45000 per year

Units produced vs units sold

Units sold: 7,500 units

Units produced: 10,000 units

PLEASE READ THE QUESTION CAREFULLY I HAVE MENTIONED ALL THE VALUSE IN THE QUESTION OUTSIDE THE PICTURES

Tableau DA 6-3: Mini-Case, Income reporting under absorption and variable costing LO P1, P2 Waltman Company just ended its first year of operations. We are hired to help with the company's reporting. The Tableau Dashboard provides data for our analysis. Variable Manufacturing Costs Fixed Overhead Costs Per $10 per unit Year $8 per unit $6 per unit 00000 $4 per unit Selling & Administrative Costs Per Year Variable Manufacturing Costs $10 per unit $8 per unit $6 per unit $4 per unit $2 per unit $0 per unit Direct Direct labor Variable Saved Fixed Overhead Costs Per Year (0000 00 Selling & Administrative Costs Per Year Fixed $6 per unit $4 per unit $2 per unit $0 per unit Selling Price Direct labor Direct materials Sales Price Variable overhead $100 Per Unit (00000) Selling & Administrative Costs Per Year Fixed Variable $0 per unit Variable Selling Price $100 Per Unit Units Produced vs Units Sold Units Sold 1,000 2,000 3,000 4,000 5,000 6,000 7,000 9,000 10,000 Units +ableau KLO 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 3. Assuming the manager's bonus is based on income, which costing method would the manager prefer in the current year? 4. Assuming the manager's bonus is based on minimizing the cost of ending inventory, which costing method would the manager prefer in the current year? 0 Direct materials Sales Price Direct labor Variable overhead Fixed Units Produced 8,000 Units Produced vs Units Sold Units Sold Units Produced 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Units +ableau 73 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 3. Assuming the manager's bonus is based on income, which costing method would the manager prefer in the current year? 4. Assuming the manager's bonus is based on minimizing the cost of ending inventory, which costing method would the manager prefer in the current year? s Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3 and 4 cocting D CI 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 3. Assuming the manager's bonus is based on income, which costing method would the manager prefer in the current year? 4. Assuming the manager's bonus is based on minimizing the cost of ending inventory, which costing method would the manager prefer in the current year? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 and 4 Prepare an income statement for the year using variable costing. WALTMAN CO. Income Statement (Variable Costing) For Year Ended December 31 Sales $ Variable expenses $ Variable cost of goods sold Variable selling and administrative expenses Total variable expenses Income 52,500 67,500 750,000 120,000 Saved 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 3. Assuming the manager's bonus is based on income, which costing method would the manager prefer in the current year? 4. Assuming the manager's bonus is based on minimizing the cost of ending inventory, which costing method would the manager prefer in the current year? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 and 4 Prepare an income statement for the year using absorption costing. WALTMAN CO. Income Statement (Absorption Costing) For Year Ended December 31 Income +ableau % PO 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 3. Assuming the manager's bonus is based on income, which costing method would the manager prefer in the current year? 4. Assuming the manager's bonus is based on minimizing the cost of ending inventory, which costing method would the manager prefer in the current year? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3 and 4 Answer the following questions. 3. Assuming the manager's bonus is based on income, which costing method would the manager prefer in the l current year? 4. Assuming the manager's bonus is based on minimizing the cost of ending inventory, which costing method would the manager prefer in the current year?