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View 125% Zoom Questions Add Category Insert Table + Exercise 1 Exercise 2 Exercise 3 Exercise 4 Exercise 5 Siren Company builds custom fishing lures for sporting goods stores. Their costs in 2020 were as follows: Variable Costs Per Unit: Direct materials $7.50 Direct labor $3.45 Variable overhead $5.80 Variable selling and administrative costs $3.90 Fixed Costs Per Year: Fixed manufacturing overhead Fixed selling and administrative costs $225,000 $210,000 a. Siren sells the fishing lures for $35 each. 90,000 lures are produced. Instructions Prepare variable costing income statements assuming sales are (1) 90,000 lures (2) 80,000 lures (3) 105,000 lures b. Prepare absorption costing income statements assuming sales are (1) 90,000 lures (2) 80,000 lures (3) 105,000 lures c. Explain why there was (or was not) a difference between the variable costing net income and the absorption cosing net income for each case. 125% View Zoom Insert Tat Add Category Exercise 2 + Questions Exercise 1 Exercise 3 Exer A B D E F G H 1 Exercise 6 2 3 4 5 6 Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors: Variable Costs Per Ton: Direct materials $210 Direct labor $70 Variable overhead $20 Variable selling and administrative costs $200 7 9 10 11 12 Fixed Costs Per Year: Fixed manufacturing overhead Fixed selling and administrative costs $2,800,000 $500,000 13 14 18 20 21 15 The selling price per ton is $2,000. 4,000 tons are produced. 16 Instructions 17 a. Prepare variable costing income statements assuming sales are (1) 3,500 tons 19 (2) 4,000 tons (3) 5,000 tons b. Prepare absorption costing income statements assuming sales are 22 (1) 3,500 tons 23 (2) 4,000 tons 24 (3) 5,000 tons 25 c. Explain why there was (or was not) a difference between the variable 26 costing net income and the absorption cosing net income for each case. 27 28 29 30 31

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