Please do not give solution in image format thanku Oriole Motors is a division of Oriole Products Corporation. The division manufactures and sells an electric switch used in a widevariety of applications. During the coming year, it expects to sell 200,000 units for $7.00 per unit. Betty Harris is the division manager.She is considering producing either 200,000 or 270,000 units during the period. Other information is as follows:Beginning inventoryExpected sales in unitsSelling price per unitVariable manufacturing cost per unitFixed manufacturing cost (total)Fixed manufacturing overhead costs per unitBased on 200,000 unitsBased on 270,000 unitsDivision Information for 2022Units producedUnits sold0200,000$7.00$2.30$540,000Manufacturing cost per unitBased on 200,000 unitsBased on 270,000 unitsVariable selling and administrative expensesFixed selling and administrative expenses (total) $10,800$2.70 per unit ($540,000+200,000)$2.00 per unit ($540,000+ 270,000)Prepare an absorption-costing income statement, with one column showing the results if 200,000 units are produced and onecolumn showing the results if 270,000 units are produced.$5.00 per unit ($2.30 variable +$2.70 fixed)$4.30 per unit ($2.30 variable $2.00 fixed)$0.30 per unitORIOLEMOTORS DIVISIONIncome StatementFor the Year Ended 2022Absorption Costing$270,000200,000

The income statement is prepared to record the revenue and expenses for the period. Using absorption…

Oriole Motors is a division of Oriole Products Corporation. The division manufactures and sells an electric switch used in a wid variety of applications. During the coming year, it expects to sell 200,000 units for $7.00 per unit. Betty Harris is the division m She is considering producing either 200,000 or 270,000 units during the period. Other information is as follows: Division Information for 2022 Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 200,000 units Based on 270,000 units Manufacturing cost per unit Based on 200,000 units Based on 270,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) 0 200,000 $7.00 $2.30 $540,000 $2.70 per unit ($540,000+200,000) $2.00 per unit ($540,000+ 270,000) $5.00 per unit ($2.30 variable + $2.70 fixed) $4.30 per unit ($2.30 variable + $2.00 fixed) $0.30 per unit $10,800

Oriole Motors is a division of Oriole Products Corporation. The division manufactures and sells an electric switch used in a wid variety of applications. During the coming year, it expects to sell 200,000 units for $7.00 per unit. Betty Harris is the division m She is considering producing either 200,000 or 270,000 units during the period. Other information is as follows: Division Information for 2022 Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 200,000 units Based on 270,000 units Manufacturing cost per unit Based on 200,000 units Based on 270,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) 0 200,000 $7.00 $2.30 $540,000 $2.70 per unit ($540,000+200,000) $2.00 per unit ($540,000+ 270,000) $5.00 per unit ($2.30 variable + $2.70 fixed) $4.30 per unit ($2.30 variable + $2.00 fixed) $0.30 per unit $10,800

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 12E

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