- Red Raider Supply Company Hired Masked Rider As Its Accountant To Replace A Retiree She Comes With Experience In Variou 1 (92.91 KiB) Viewed 39 times
Red Raider Supply
Company hired Masked Rider as its accountant to replace a retiree. She comes with experience in various industries and can prepare financial statements that use standard costing within an absorption costing system. However, Red Raider Supply
Company would like to prepare its financial statements using variable costing for its internal reports. Masked Rider has gathered the following information for the last 2 years of operation 120,000 units $720,000 $535,000 Budgeted production Budgeted fixed manufacturing costs Budgeted fixed operating expenses Budgeted variable operating expenses Budgeted variable manufacturing cost Budgeted selling price Beginning FG Inventory (in units) Actual units produced Sales (in units) 2025 115,000 112,400 $12 per unit $32 per unit $60 per unit 2026 2,600 122,000 124,000 She noted there were no price or efficiency variances for either year. It's the
company's policy to write off any fixed-MOH volume variances directly to COGS Instructions Respond to a., d., e., f.. g.. h. Complete requirements using a spreadsheet. Submit answers on an Excel file via Blackboard. a. Determine the per-unit cost that would be capitalized under each costing system. d. Prepare an income
statement for both years under absorption costing e. Prepare an income
statement for both years under variable costing. f. Calculate the difference in operating income (if any) between the two methods for (1) 2025 and (2) 2026. Explain any differences with calculations. mance evaluation purposes and