Hadlee Company Sells Its Products for $66 Each Required:
A

question 149

Essay

Hadlee Company sells its products for $66 each.The current production level is 25 000 units,although only 20 000 units are anticipated to be sold.
Unit manufacturing costs are:
$\begin{array} { l l } \text { Direct materials } & \$ 12.00 \\ \text { Direct manufacturing labour } & \$ 18.00 \\ \text { Variable manufacturing costs } & \$ 9.00 \\ \text { Total fixed manufacturing costs } & \$ 180000\\\text {Marketing expenses}&\text { \$ 6.00 per unit, plus \$ 60000 per year} \end{array}$

Required:
a.Prepare an income statement using absorption costing.
b.Prepare an income statement using variable costing.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

---

Definitions:

Prosocial Motivation

The desire to expend effort to benefit or help others, often driven by altruism or concern for the welfare of others.

Job Enrichment

Enhancing a job by adding tasks that increase responsibility and growth opportunities.

Moderator Variable

A type of variable in statistical analyses that influences the strength or direction of the relationship between an independent and a dependent variable.

Fragmented

Describes something that is broken into parts, disorganized, or lacks cohesion.