Question

Help me fill out the boxes. What’s missing

Answer 1

You are missed to post Variable costs in Variable Costing Income Statement Those Variable costs are Direct Material, Direct Labor, Variable Overhead etc., Except that you have understood all well Please check the statement given below Thank you Answer DOWELL COMPANY Variable Costing Income Statement er uni 2016 2017 Sale units 20,000 40,000 Sales value B $ 46.00 $920,000 $1,840,000 -Sale units x Selling price per unit Less Variable costs Direct Material - Sale units x Direct material per unit 5.00 $100,000 200,000 Direct Labor 9.00 $180,000 S 360,000 Sale units x Direct labor per unit Variable overhead E $ 7.00 $140,000 $ 280,000 -Sale units x Variable overhead per unit Variable Selling & Adminstrative expenses F$ 2.50 50,000 - Sale units x Variable Selling & Administrative expense per unit 100,000 Total Variable Cost (B+C+D+E) G 23.50 $470,000 $ 940,000 Total Contribution Margin (A - G) H $ 22.50 $450,000 $ 900,000 Fixed costs: Fixed overhead Fixed Selling & Administrative expenses $300,000 300,000 $240,000 240,000 Net Income (Loss) (H-I-J) (90,000)$ 360,000