Carol Mann and Gerald Harris worked for Helmsley-Spear, Inc. (HSI), as managers for various HSI properties. In 2005 each received a bo­nus of $50,000 for their work in converting an HSI apartment complex, known as Windsor Park, into a condominium complex. The conversion started in 2002 and took three years. The bonus was paid pursuant to an oral contract made in December of 2001 that promised a bonus (above their salary) when the project was completed. HIS was very happy with their work and indicated that other projects are planned. In 2006 Mann and Harris were asked by HIS to work on another conversion of an apartment building known as Park West. For this project Mann and Harris were again orally promised a bonus (above their salary) using the formula similar to the Windsor Park conversion. It was understood that this project would also require two or three years to complete. In 2009, after successfully converting Park West, Mann and Harris were fired. HSI refused to pay them the bonus. Mann and Harris sued. Among other things, HSI contended that their oral agreement concerning the extra com­pensation was unenforceable under the Statute of Frauds.

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.