Question: 1. If standard costs are recorded in the manufacturing accounts, how are recorded variances treated at the end of an accounting period?
2. Beck Company expects to produce 10,000 units for the year ending December 31. A flexible budget for 10,000 units of production reflects sales of $200,000; variable costs of $40,000; and fixed costs of $75,000. If the company instead produces and sells 13,000 units for the year, calculate the expected level of income from operations.