Homework SourseHomework Exercise 722 Save Score 0 of 10 pts 1 of 10 complet
Homework: Exercise 7-22* Save Score: 0 of 10 pts 1 of 1,0 complete) HW Score: 0%, 0 of 10 pts E9-22 (similar to) Question Help * CleanAir Company manufacturers a professional-grade vacuum cleaner and began operations in 2014. For 2014, CleanAir budgeted to produce and sell 27,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2014 are given as follows: (Click the icon to view the actual data for 2014) Read the requirements Requirement 1. Prepare a 2014 income statement for CleanAir Company using variable costing. Complete the top half of the income statement first, then complete the bottom portion. (For amounts with a SO balance, make sure to enter \"0\" in the appropriate cell.) Variable Costing
Solution
Income statement under variable costing :
| Sales (19500*425) | 8287500 | |
| Variable cost | ||
| Direct material (19500*35) | (682500) | |
| Direct labour (19500*26) | (507000) | |
| Variable manufacturing overhead (19500*60) | (1170000) | |
| Variable marketing cost (19500*42) | (819000) | (3178500) |
| Contribution margin | 5109000 | |
| Less: Fixed cost | ||
| Manufacturing cost | (1620000) | |
| Marketing cost | (1311200) | |
| Administrative cost | (1024600) | (3955800) |
| Net Income | 1153200 |
