(d) What is the net operating income (loss) in Year 2 under variable costing? (e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a 2 Units were left over from the previous year. 2 The cost of goods sold is always less under variable costing than under absorption costing. 2 Sales exceeded production so some of the fixed manufacturing overhead of the period was released from inventorles under absorption costing. 3. Make a note of the absorption costing net operating income (loss) in Year 2. At the end of Year 1, the company's board of directors set a target for Year 2 of net operating income of $130,000 under absorption costing. If this target is met, a hefty bonus would be paid to the CEO of the company. Keeping everything else the same from part (2) above, change the units produced in Year 2 to 4,000 units. (a) Would this change result in a bonus being paid to the CEO? Yes O No
(d) What is the net operating income (loss) in Year 2 under variable costing? (e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a 2 Units were left over from the previous year. 2 The cost of goods sold is always less under variable costing than under absorption costing. 2 Sales exceeded production so some of the fixed manufacturing overhead of the period was released from inventorles under absorption costing. 3. Make a note of the absorption costing net operating income (loss) in Year 2. At the end of Year 1, the company's board of directors set a target for Year 2 of net operating income of $130,000 under absorption costing. If this target is met, a hefty bonus would be paid to the CEO of the company. Keeping everything else the same from part (2) above, change the units produced in Year 2 to 4,000 units. (a) Would this change result in a bonus being paid to the CEO? Yes O No
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter27: Lean Principles, Lean Accounting, And Activity Analysis
Section: Chapter Questions
Problem 27.20EX
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Please help me with 2d, 2e, 3a, 3b, and 3c. Thanks! :) If someone can help with all these I will give a thumbs up!
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