(Variable Manufacturing Costs)

Direct Materials: $7 Per Unit

Direct Labor: $9 Per unit

Variable Overhead: $4 Per Unit

Fixed Manufacturing Overhead: $100,000 per year

Selling & Administrative Costs

Fixed: $45,000 per year

Variable: $85,000 per year

Selling Price: $100 per unit

Units Produced vs Units Sold

Units Sold: 7,500 units

Units Produced: 10,000 units

(Please use exact graph displayed in question.)

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. Units Produced vs Units Sold 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. Prepare an income statement for the year using variable costing. 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 ifventory, which costing method would the manager prefer in the current year? Complete this question by entering your answers in the tabs below. Prepare an income statement for the year using variable costing. 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 managar'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. Prepare an income statement for the year using absorption costing. 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