Reference no: EM132659883
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?