I need some help **Ogilvy Company Manufacturing Cost Analysis**Ogilvy Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:### Variable Cost per Unit:- **Direct Materials:** $26### Fixed Costs per Year:- **Direct Labor:** $1,330,000- **Fixed Manufacturing Overhead:** $832,000- **Fixed Selling and Administrative Expenses:** $266,000The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced 70,000 units and sold 70,000 units. In the second year, 70,000 units were produced, and 66,200 units were sold. In the third year, 70,000 units were produced and 73,800 units were sold. The selling price of the company’s product is $61 per unit.### Required Tasks:1. **Assume the company uses super-variable costing:** - Compute the unit product cost for Year 1, Year 2, and Year 3. - Prepare an income statement for Year 1, Year 2, and Year 3.2. **Assume the company uses a variable costing system that assigns $19 of direct labor cost to each unit produced:** - Compute the unit product cost for Year 1, Year 2, and Year 3. - Prepare an income statement for Year 1, Year 2, and Year 3.3. **Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1, 2, and 3.**### Instruction:Complete this question by entering your answers in the tabs below.**Table: Reconcile the Difference Between the Super-Variable Costing and Variable Costing Net Operating Incomes in Years 1, 2, and 3**| | Year 1 | Year 2 | Year 3 ||--------------------------------|--------|--------|--------|| Super-variable costing net operating income (loss) | | | || Variable costing net operating income (loss) | $0 | $0 | $0 | **Taira's Creations, Inc. Income Statement for the Quarter Ended March 31**- **Sales (28,700 units):** $1,148,000 - **Variable expenses:** - Variable cost of goods sold: $482,160 - Variable selling and administrative: $192,290 - Total Variable expenses: $674,450 - **Contribution margin:** $473,550 - **Fixed expenses:** - Fixed manufacturing overhead: $285,900 - Fixed selling and administrative: $201,750 - Total Fixed expenses: $487,650- **Net operating loss:** $(13,500)---Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used, the company probably would have reported at least some profit for the quarter.At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:- **Units produced:** 31,700- **Units sold:** 28,700- **Variable costs per unit:** - Direct materials: $2.60 - Direct labor: $7.80 - Variable manufacturing overhead: $1.70 - Variable selling and administrative: $6.70**Required:**1. Compute the unit product cost under absorption costing.2. What is the company’s absorption costing net operating income (loss) for the quarter?3. Reconcile the variable and absorption costing net operating income (loss) figures.4. During the second quarter of operations, the company again produced 31,700 units but sold 34,700 units. (Assume no change in total fixed costs.) a. What is the company’s variable costing net operating income (loss) for the second quarter? b. What is the company's absorption costing net operating income (loss) for the second quarter? c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.

Variable costs: These costs are incurred in conjunction to the volume of goods produced or sold. It…

Oglvy Company manufactures and sells one product. The following information pertalns to each of the company's first three years of operations: Variable cost per unit: Direct materials 26 Fixed costs per year: Direct labor $1,330, e0e Fixed manufacturing overhead Fixed selling and administrative expenses $ 832, 000 $ 266,000 The company does not incur any varlable manufacturing overhead costs or varlable selling and administrative expenses. During its first year of operations, Oglvy produced 70,000 units and sold 70,000 units. During Its second year of operations, It produced 70,000 units and sold 66,200 units. In its third year, Ogilvy produced 70,000 units and sold 73,800 units. The selling price of the company's product Is $61 per unit. Requlred: 1. Assume the company uses super-varlable costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an Income statement for Year 1, Year 2, and Year 3. 2. Assume the company uses a varlable costing system that assigns $19 of direct labor cost to each unit produced: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. 3. Reconcile the difference between the super-variable costing and varlable costing net operating incomes in Years 1, 2, and 3.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q