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What incentives will the create for the supervisors

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DYSHA budgeted to produce and sell 30,000 vacuum cleaning systems. The company writes off any under or over allocation of overhead to COGS. Actual data for 2019 was as follows:

Units produced 27,000

Units sold 26,250

Selling price $850

Variable costs:

Manufacturing cost per unit produced

Direct materials $60

Direct manufacturing labor 50

Manufacturing overhead 120

Marketing cost per unit sold 90

Fixed costs

Manufacturing costs $2,200,000

Administrative costs 1,930,900

Marketing 2,732,800

Question 1. required 2019 income statement for DYSHA using variable costing.

Question 2. required 2019 income statement for DYSHA using absorption costing.

Question 3. Explain the differences in income between variable and absorption costing

Question 4. DYSHA's Board of Directors is considering implementing a bonus for the supervisors based on gross margin under absorption costing. What incentives will this create for the supervisors? What modifications could DYSHA directors make to improve the plan?

Reference no: EM132659883

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