60.1K
Verified Solution
Link Copied!
Absorption Statement to Variable Costing Statement as follows:
Qtr 1 Qtr2 % change
Sales 750,000 787500 5%
CGS 340,000 346,000
Gross Profit 410,000 441500
Op Exp. 116,000 117,800
Op Inc. 294,000 323,700 10%
Use the DOL to re-state each quarter 1 into a variable costing statement.
what is the DOL for quarter 1?
What is the CM for quarter 1?
Step2: use the CM ratio of quarter 1 to format a variable costing statement for quarter 2
Prepare to variable costing statements for quarter 1 and quarter 2
Answer & Explanation
Solved by verified expert
