Explanation of Absorption and Variable Costing Income Statement
Include in your answer these steps:
1-Calculate the absorption rate for the fixed costs.
Note: This must be done before calculating the variable costing income statement.
2-Calculate the total absorption of fixed and variable costs.
3-Discuss how production affected the absorption of fixed costs for each year.
4-Discuss how production affected the absorption of fixed costs for the budget for 2005.
5-Discuss how a change to throughput costing would change the income statement.
Need calculations done in the Absorption & Variable Costing Income Statements. Along with the above 5 items.
Attached are the Absorption & Variable Costing Income Statements, the financial reports for the past 3 years, the activity report for the past 3 years,© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/accounting/explanation-of-absorption-and-variable-costing-income-statement-3dg4