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Combe Corporation has two divisions: Alpha and Beta. Data from the most recent month appear below: Combe Corporation has two divisions: Alpha and Beta. Data from the most recent month appear below: The company's common fixed expenses total $94,500. The break-even in sales dollars for Alpha Division is closest to: A) $559,364 B) $273,000 C) $108,500 D) $286,364 The company's common fixed expenses total $94,500. The break-even in sales dollars for Alpha Division is closest to:


A) $559,364
B) $273,000
C) $108,500
D) $286,364

E) A) and B)
F) A) and C)

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Silver Corporation produces a single product. Last year, the company's variable production costs totaled $7,500 and its fixed manufacturing overhead costs totaled $4,500. The company produced 3,000 units during the year and sold 2,400 units. There were no units in the beginning inventory. Which of the following statements is true?


A) Under variable costing, the units in the ending inventory will be costed at $4.00 each.
B) The net operating income under absorption costing for the year will be $900 lower than the net operating income under variable costing.
C) The ending inventory under variable costing will be $900 lower than the ending inventory under absorption costing.
D) Under absorption costing, the units in ending inventory will be costed at $2.50 each.

E) A) and C)
F) C) and D)

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Davison Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Davison Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the total period cost for the month under the absorption costing? A) $93,100 B) $133,100 C) $40,000 D) $73,500 What is the total period cost for the month under the absorption costing?


A) $93,100
B) $133,100
C) $40,000
D) $73,500

E) C) and D)
F) A) and B)

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Leheny Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Leheny Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit.The net operating income for the year under super-variable costing is: A) $1,400,000 B) $1,110,000 C) $1,005,000 D) $580,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit.The net operating income for the year under super-variable costing is:


A) $1,400,000
B) $1,110,000
C) $1,005,000
D) $580,000

E) B) and C)
F) A) and D)

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Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: The break-even in sales dollars for Division Q is closest to: A) $352,635 B) $234,615 C) $403,635 D) $512,742 The break-even in sales dollars for Division Q is closest to:


A) $352,635
B) $234,615
C) $403,635
D) $512,742

E) A) and C)
F) A) and B)

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Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit.Assume that the company uses a variable costing system that assigns $17 of direct labor cost to each unit that is produced. The unit product cost under this costing system is: A) $114 per unit B) $191 per unit C) $97 per unit D) $224 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit.Assume that the company uses a variable costing system that assigns $17 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:


A) $114 per unit
B) $191 per unit
C) $97 per unit
D) $224 per unit

E) B) and D)
F) B) and C)

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Under variable costing, fixed manufacturing overhead is treated as a product cost.

A) True
B) False

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Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the net operating income for the month under variable costing? A) $5,400 B) $1,700 C) $(4,500) D) $3,700 What is the net operating income for the month under variable costing?


A) $5,400
B) $1,700
C) $(4,500)
D) $3,700

E) A) and B)
F) A) and C)

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Letcher Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Letcher Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 44,700 units and sold 43,200 units. The company's only product is sold for $183 per unit.The company is considering using either super-variable costing or a variable costing system that assigns $21 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year? A) Variable costing net operating income exceeds super-variable costing net operating income by $109,500. B) Super-variable costing net operating income exceeds variable costing net operating income by $109,500. C) Variable costing net operating income exceeds super-variable costing net operating income by $31,500. D) Super-variable costing net operating income exceeds variable costing net operating income by $31,500. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 44,700 units and sold 43,200 units. The company's only product is sold for $183 per unit.The company is considering using either super-variable costing or a variable costing system that assigns $21 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?


A) Variable costing net operating income exceeds super-variable costing net operating income by $109,500.
B) Super-variable costing net operating income exceeds variable costing net operating income by $109,500.
C) Variable costing net operating income exceeds super-variable costing net operating income by $31,500.
D) Super-variable costing net operating income exceeds variable costing net operating income by $31,500.

E) B) and C)
F) All of the above

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Badoni Corporation has provided the following data for its two most recent years of operation: Badoni Corporation has provided the following data for its two most recent years of operation: The net operating income (loss) under variable costing in Year 2 is closest to: A) $180,000 B) $195,000 C) $59,000 D) $7,000 The net operating income (loss) under variable costing in Year 2 is closest to:


A) $180,000
B) $195,000
C) $59,000
D) $7,000

E) A) and B)
F) B) and C)

Correct Answer

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Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 42,000 units and sold 38,000 units. The company's only product is sold for $230 per unit.The net operating income for the year under super-variable costing is: A) $697,000 B) $353,000 C) $1,041,000 D) $626,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 42,000 units and sold 38,000 units. The company's only product is sold for $230 per unit.The net operating income for the year under super-variable costing is:


A) $697,000
B) $353,000
C) $1,041,000
D) $626,000

E) C) and D)
F) B) and D)

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Plummer Corporation has provided the following data for its two most recent years of operation: Plummer Corporation has provided the following data for its two most recent years of operation: The net operating income (loss) under absorption costing in Year 2 is closest to: A) $31,000 B) $26,000 C) $132,000 D) $92,000 The net operating income (loss) under absorption costing in Year 2 is closest to:


A) $31,000
B) $26,000
C) $132,000
D) $92,000

E) A) and B)
F) None of the above

Correct Answer

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Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit.The net operating income for the year under super-variable costing is: A) $799,000 B) $229,000 C) $714,000 D) $1,184,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit.The net operating income for the year under super-variable costing is:


A) $799,000
B) $229,000
C) $714,000
D) $1,184,000

E) A) and C)
F) B) and C)

Correct Answer

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Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit.The unit product cost under super-variable costing is: A) $97 per unit B) $191 per unit C) $224 per unit D) $114 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit.The unit product cost under super-variable costing is:


A) $97 per unit
B) $191 per unit
C) $224 per unit
D) $114 per unit

E) A) and B)
F) A) and C)

Correct Answer

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Krepps Corporation produces a single product. Last year, Krepps manufactured 28,000 units and sold 22,500 units. Production costs for the year were as follows: Krepps Corporation produces a single product. Last year, Krepps manufactured 28,000 units and sold 22,500 units. Production costs for the year were as follows: Sales totaled $1,046,250 for the year, variable selling and administrative expenses totaled $117,000, and fixed selling and administrative expenses totaled $201,600. There was no beginning inventory. Assume that direct labor is a variable cost.Under variable costing, the company's net operating income for the year would be: A) $33,000 lower than under absorption costing. B) $33,000 higher than under absorption costing. C) $66,000 lower than under absorption costing. D) $66,000 higher than under absorption costing. Sales totaled $1,046,250 for the year, variable selling and administrative expenses totaled $117,000, and fixed selling and administrative expenses totaled $201,600. There was no beginning inventory. Assume that direct labor is a variable cost.Under variable costing, the company's net operating income for the year would be:


A) $33,000 lower than under absorption costing.
B) $33,000 higher than under absorption costing.
C) $66,000 lower than under absorption costing.
D) $66,000 higher than under absorption costing.

E) A) and D)
F) C) and D)

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Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the net operating income (loss) for the month under variable costing? A) $11,000 B) $(26,200) C) $17,000 D) $6,000 What is the net operating income (loss) for the month under variable costing?


A) $11,000
B) $(26,200)
C) $17,000
D) $6,000

E) A) and C)
F) A) and B)

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Mandato Corporation has provided the following data for its two most recent years of operation: Mandato Corporation has provided the following data for its two most recent years of operation: The net operating income (loss) under variable costing in Year 1 is closest to: A) $144,000 B) $2,000 C) $26,000 D) $174,000 The net operating income (loss) under variable costing in Year 1 is closest to:


A) $144,000
B) $2,000
C) $26,000
D) $174,000

E) B) and C)
F) A) and C)

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Kaaua Corporation has provided the following data for its two most recent years of operation: Kaaua Corporation has provided the following data for its two most recent years of operation: Which of the following statements is true for Year 2? A) The amount of fixed manufacturing overhead deferred in inventories is $534,000 B) The amount of fixed manufacturing overhead released from inventories is $78,000 C) The amount of fixed manufacturing overhead released from inventories is $534,000 D) The amount of fixed manufacturing overhead deferred in inventories is $78,000 Which of the following statements is true for Year 2?


A) The amount of fixed manufacturing overhead deferred in inventories is $534,000
B) The amount of fixed manufacturing overhead released from inventories is $78,000
C) The amount of fixed manufacturing overhead released from inventories is $534,000
D) The amount of fixed manufacturing overhead deferred in inventories is $78,000

E) A) and B)
F) A) and C)

Correct Answer

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Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: The total gross margin for the month under the absorption costing approach is: A) $73,000 B) $37,400 C) $13,200 D) $50,600 The total gross margin for the month under the absorption costing approach is:


A) $73,000
B) $37,400
C) $13,200
D) $50,600

E) A) and B)
F) C) and D)

Correct Answer

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Marcelin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Marcelin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit.The unit product cost under super-variable costing is: A) $191 per unit B) $233 per unit C) $114 per unit D) $92 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit.The unit product cost under super-variable costing is:


A) $191 per unit
B) $233 per unit
C) $114 per unit
D) $92 per unit

E) A) and D)
F) B) and D)

Correct Answer

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