RECOMMENDED!!ACCT 3000-Gibson Glass Company makes stained glass lamos
Gibson Glass Company makes stained glass lamos. Each lamp that it sells for $316.70 per lamp requires $17.10 of direct materials and $70.60 of direct labor. Fixed overhead costs are expected to be $196,500 per year. Gibson Glass expects to sell 1,000 lamps during the coming year. Selling and administrative expenses were zero.A. Prepare income statements using absorption costing, assuming that Gibson Glass makes 1,000, 1,250, and 1,500 lamps during the year.B. Prepare income statements using variable costing, assuming that Gibson Glass makes 1,000, 1,250, and 1,500 lamps during the year.Do not round intermediate calculations.
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