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17. (Actual price-standard price) x actual quanity
(6-5.9) * 1000 = 100 Unfavorable
18. Variable costing income statements show cost of goods sold based only on the variable costs. Variable costing income statements show the margin based on variable costs (cost of goods sold and administrative costs) and then deduct fixed costs. Fixed costs are not built into the cost of the product. Under absorption costing, fixed costs are included in the cost of the profit. Gross profit is shown net of variable costs and fixed costs allocated to the product, then variable and fixed administrative costs are deducted.Absorption costing has the greater chance of misuse by management because management can allocate fixed costs to the cost of the product that really should not be built into the product.10. Insurance on inventory of sporting goods 11.total service department charges are $1,025,000 12. subtracted from income from operations before service department charges13.$2,816,000 14. 78.4% 15. 18% 16. people may stop trying since they know it can not be achieved