Spock Company incurs the following costs to produce and sell a single product. Variable costs per unit: Direct materials. Direct labor... Variable manufacturing overhead.. Variable selling and administrative expenses. Fixed costs per year: Fixed manufacturing overhead.. Fixed selling and administrative expenses. $9 $10 $5 $3 $150,000 $400,000 Is the company using absorption costing or variable costing to cost units in the Finished Goods inventory account? Show computations to support your answer.

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Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that the company uses variable costing. Prepare a contribution format income statement for last year. Chuck Wagon Grills, Inc. Variable Costing Income Statement Sales $ 4,620,000 Variable expenses: Variable cost of goods sold Variable selling and administrative expenses Contribution margin 4,620,000 Fixed expenses: Fixed manufacturing overhead $ 910,000 Fixed selling and administrative expenses 330,000 1,240,000 Net operating income $ 3,380,000

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