Vernon Company incurred manufacturing overhead cost for the year as follows. The company produced 1,200...
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Accounting
Vernon Company incurred manufacturing overhead cost for the year as follows. The company produced 1,200 units and sold 700 of them at $180.90 per unit. Assume that the production manager is paid a 1 percent bonus based on the company's net income. Required a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting
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