Prepare income statement but total cost of unused capacity

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Problem 1: Suppose that in addition to the change in part a, the unit time tor scheduling a production run decreased from four hours per run to three hours per run. Determine the new total time driven actwiw-based costs assigned to each of the to or products (flavors) and

Question 1: Prepare an income statement similar but also showing the total cost of unused capacity

Product Profit or loss

Vanilla

Chocolate

Strawberry

Mochaalmond

Total

Sales

30000

24000

3960

2800

6076

Direct material

6000

4800

720

520

1204

Direct labour

8750

7000

1050

700

1750

Indirect labour usage

4966.5

3580.5

3888.5

4042.5

1647

Machine Usage

5025

3750

1245

1230

1125

Gross profit/ loss

5258.5

4869.5

-2943.5

-3692.5

349

Gross profit/ loss as a percentage of sales

17.5283

20.3

-74.3

-131.9

5.

Reference no: EM132472378

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