Analysis of differential revenues and costs -- special order a include the formula here Increased revenue Differential costs: Selling: Per unit variable cost Units in special order Total variable costs Fixed cost increment: Total volume required by special order Extra volume Extra cost Profit/(loss) on special order b C
Analysis of differential revenues and costs -- special order a include the formula here Increased revenue Differential costs: Selling: Per unit variable cost Units in special order Total variable costs Fixed cost increment: Total volume required by special order Extra volume Extra cost Profit/(loss) on special order b C
Analysis of differential revenues and costs -- special order a include the formula here Increased revenue Differential costs: Selling: Per unit variable cost Units in special order Total variable costs Fixed cost increment: Total volume required by special order Extra volume Extra cost Profit/(loss) on special order b C
Can somebody check my work on the variable costing income statement in the screenshot attached?
Summarized data for 2019 (the first year of operations) for Gorman Products, In. are as follows
Sales (70,000 units)
$2,800,000
Production costs (80,000 units):
Direct materials
880,000
Direct labor
720,000
Manufacturing overhead:
Variable
544,000
Fixed
320,000
Operating expenses:
Variable
175,000
Fixed
240,000
Depreciation on equipment
60,000
Real estate taxes
18,000
Personal property taxes (inventory and equipment
28,000
Personnel department expenses
30,000
Problem
b) Prepare an income statement based on variable costing
Transcribed Image Text:Analysis of differential revenues and costs -- special order
a
include the formula here
Increased revenue
Differential costs:
Selling:
Per unit variable cost
Units in special order
Total variable costs
Fixed cost increment:
Total volume required by special order
Extra volume
Extra cost
Profit/(loss) on special order
b
C
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
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