CoursHeroTranscribedText: Speedy Motors assembles and sells motor vehicles and uses standard costing. Actual data relating...
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CoursHeroTranscribedText: Speedy Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2020 are as follows: g (Click the icon to view the data.) The selling price per vehicle is $23,000. The budgeted level of production used to calculate the budgeted xed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost at goods sold in the month in which it occurs. Read the m. Data table 1 April May' 2 Unit data: 3 Beginning inventory 0 50 4 Production 500 25 5 Sales 450 35 6 Variable costs: 7 Manufacturing cost per unit produced $ 11.000 $ 11.000 8 Operating (marketing) cost per unit sold 3.800 3.800 9 Fixed costs: 10 Manufacturing costs $ 2.250.000 $ 2.250.000 11 Operating (marketing) costs 500.000 500.000 Requirements 1. Prepare April and May 2020 income statements for Speedy Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing
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