Ick Manufacturing Company Established the Following Standard Price and Cost

question 42

Essay

Ick Manufacturing Company established the following standard price and cost information:
Ick expected to produce and sell 20,000 units. Actual production and sales amounted to 21,500 units.Required:
(a) Prepare the pro forma income statement in contribution format that would appear in Ick's master budget for the year.(b) Prepare the income statement in contribution format that would appear in Ick's flexible budget. $$\begin{array} { | l | r | } \hline \text { Sales price } & \$ 50 \text { per unit } \\\hline \text { Variable manufacturing cost } & 32 \text { per unit } \\\hline \text { Fixed manufacturing cost } & \$ 100,000 \text { total } \\\hline \text { Fixed selling and administrative cost } & \$ 40,000 \text { total } \\\hline\end{array}$$

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Definitions:

Chromosomes

Within every cell, rod-shaped structures that carry the genes.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Proteins

Large molecules essential for the structure, function, and regulation of the body's cells, tissues, and organs.

Human Chromosome

A thread-like structure of nucleic acids and protein found in the nucleus of most living cells, carrying genetic information in the form of genes.