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Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year $ 48 $ 18 $ 6 $ 420,000 $ 10 $ 115,000 sume the company uses variable costing. Prepare its income statement for th- 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Answer is complete but not entirely correct. COOL SKY Variable Costing Income Statement Sales $ 4080,000 Less. Variable costs Variable product costs Variable selling and administrative expenses $ 2.248.000 340.000 Total variable costs Contribution margin 2.588.000 1 492,000 DIS S SHE Required information VOTTAVIC SCHry anU QUITOU QUE expenses 340,000 Total variable costs 2,588,000 1,492,000 X Contribution margin Less: Fixed expenses Fixed overhead costs Fixed selling and administrative costs 420,000 115,000 Total fixed expenses Net income (loss) 535,000 957,000 X $ S Next HRANU S5 MM NAM AAM 2a. Assume the company uses variable costing. Determine its product cost per unit. Answer is complete and correct. Variable costing $ 48.00 $ Per unit product cost using: Direct materials per unit Direct labor per unit Variable overhead per unit 18.00 6.00 Total cost per unit 72.00 5 completion. not indico" Return to questi 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing Answer is complete and correct. COOLSKY $ 4,080,000 Absorption Costing Income Statement Sales Less Cost of goods sold Direct materials IS 1.632,000 Direct labor 612,000 Variable overhead costs 204,000 Fixed overhead costs 340,000 Cost of goods sold Gross margin 2.788 000 1.292.000 co 8 NI a $ earch o LGOO. UVOL UI YUUU SVI ! ! Required information Variable overhead costs 204,000 340,000 Fixed overhead costs 2,788,000 1,292,000 Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses 115,000 340,000 Total selling and administrative expenses Net income (loss) 455.000 837,000 $ Next >