Dorilane – Original Cost Structure (connect given data) Total Dollars (per connect) Per unit/set (divide by full capacity) show 2 decimals Helpful Hints (**) Sales $520.00 Variable Costs: Direct Material 434000 108.50 variable and direct Direct Labor 94000 23.50 variable and direct Variable Overhead 66000 16.50 variable and indirect Variable S&A 65000 16.25 variable and period Total Variable Costs 659000 164.75 Fixed Overhead 221000 fixed and indirect Fixed S&A 211000 fixed and period Total Fixed Costs 432000 Year 1 4000 sales of sets/units and 4000 productions of sets/unit Use the table below to prepare a traditional (absorption costing) income statement assuming Dorilane Company produced and sold at full capacity for year 1 only. You should have numbers in each pale blue cell. Dorilane Income Statement (Absorption Costing) For Year 1 ending December 31 Year 1 Units Produced – (from 1a) Units Sold – (from 1a) Sales revenue Cost of Goods Sold: Variable cost of goods sold Fixed manufacturing overhead Total COGS Gross Margin Variable S&A expenses Fixed S&A expenses Total S&A expenses Net Operating Income Use the table below to prepare a contribution margin income statement using variable costing. Note – You should get the same Net Operating Income, NOI as in d) You should have numbers in each pale blue cell. Dorilane Income Statement (Variable Costing) For Year 1 ending December 31 Year 1 Units Produced – (from 1a) Units Sold – (from 1a) Sales revenue Variable expenses: Variable cost of goods sold Variable S&A expenses Total variable expenses Contribution Margin Fixed manufacturing overhead Fixed S&A expenses Total Fixed Expenses Net Operating Income
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Dorilane – Original Cost Structure (connect given data) |
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Total Dollars (per connect) |
Per unit/set (divide by full capacity) show 2 decimals |
Helpful Hints (**) |
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Sales |
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$520.00 |
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Variable Costs: |
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Direct Material |
434000 |
108.50 |
variable and direct |
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Direct Labor |
94000 |
23.50 |
variable and direct |
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Variable |
66000 |
16.50 |
variable and indirect |
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Variable S&A |
65000 |
16.25 |
variable and period |
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Total Variable Costs |
659000 |
164.75 |
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Fixed Overhead |
221000 |
fixed and indirect |
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Fixed S&A |
211000 |
fixed and period |
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Total Fixed Costs |
432000 |
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Year 1 4000 sales of sets/units and 4000 productions of sets/unit
- Use the table below to prepare a traditional (absorption costing) income statement assuming Dorilane Company produced and sold at full capacity for year 1 only. You should have numbers in each pale blue cell.
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Dorilane |
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Income Statement (Absorption Costing) |
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For Year 1 ending December 31 |
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Year 1 |
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Units Produced – (from 1a) |
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Units Sold – (from 1a) |
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Sales revenue |
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Cost of Goods Sold: |
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Variable cost of goods sold |
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Fixed manufacturing overhead |
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Total COGS |
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Gross Margin |
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Variable S&A expenses |
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Fixed S&A expenses |
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Total S&A expenses |
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Net Operating Income |
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- Use the table below to prepare a contribution margin income statement using variable costing. Note – You should get the same Net Operating Income, NOI as in d) You should have numbers in each pale blue cell.
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Dorilane |
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Income Statement (Variable Costing) |
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For Year 1 ending December 31 |
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Year 1 |
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Units Produced – (from 1a) |
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Units Sold – (from 1a) |
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Sales revenue |
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Variable expenses: |
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Variable cost of goods sold |
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Variable S&A expenses |
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Total variable expenses |
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Contribution Margin |
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Fixed manufacturing overhead |
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Fixed S&A expenses |
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Total Fixed Expenses |
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Net Operating Income |
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