FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Variable Costing and Segment Reporting: Tools for Management

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 151

Multiple Choice

Review LaterAdd Note

Review Later

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: The total gross margin for the month under absorption costing is:

A) $71,240
B) $21,920
C) $107,020
D) $117,820

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

Correct Answer

verified

Show Answer

Question 152

Multiple Choice

Review LaterAdd Note

Review Later

Bryans 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) $41,000
B) $203,000
C) $175,000
D) $47,000

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

Correct Answer

verified

Show Answer

Question 153

Multiple Choice

Review LaterAdd Note

Plummer Corporation has provided the following data for its two most recent years of operation: The unit product cost under absorption costing in Year 2 is closest to:

Murphy Incorporated, which produces a single product, has provided the following data for its most recent month of operation: The company had no beginning or ending inventories.Required:a. Compute the unit product cost under absorption costing.b. Compute the unit product cost under variable costing.

Ross Corporation produces a single product. The company has direct materials costs of $8 per unit, direct labor costs of $6 per unit, and manufacturing overhead of $10 per unit. Sixty percent of the manufacturing overhead is for fixed costs. In addition, variable selling and administrative expenses are $2 per unit, and fixed selling and administrative expenses are $3 per unit at the current activity level. Assume that direct labor is a variable cost.Under variable costing, the unit product cost is:

Lean production should result in reduced inventories. If lean production is successfully implemented, the difference in net operating income computed under the absorption and variable costing methods should be reduced.

Bertie Corporation has two divisions: Retail Division and Wholesale Division. The following data are for the most recent operating period: The common fixed expenses of the company are $103,360.The Wholesale Division's break-even sales is closest to:

A company produces a single product. Variable production costs are $21 per unit and variable selling and administrative expenses are $4 per unit. Fixed manufacturing overhead totals $30,000 and fixed selling and administration expenses total $36,000. Assuming a beginning inventory of zero, production of 6,000 units and sales of 5,600 units, the dollar value of the ending inventory under variable costing would be:

Tremble 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 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.The unit product cost under super-variable costing is:

When computing the break even for a segment, the calculations include the company's common fixed expenses.

Tremble 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 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.Assume that the company uses an absorption costing system that assigns $11 of direct labor cost and $75 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:

If a cost must be arbitrarily allocated in order to be assigned to a particular segment, then that cost should be considered a common cost.

Tustin 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:

Kern Corporation produces a single product. Selected information concerning the operations of the company follow: Assume that direct labor is a variable cost.Under absorption costing, the value of the ending finished goods inventory would be:

Elison 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?

Rhea 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:

McCoy Corporation manufactures a computer monitor. Shown below is McCoy's cost structure: In its first year of operations, McCoy produced 100,000 monitors but only sold 95,000. McCoy's gross margin in this first year was $2,629,600. McCoy's contribution margin in this first year was $2,109,000.Under absorption costing, what is McCoy's net operating income for its first year?

Carroll Corporation has two products, Q and P. During June, the company's net operating income was $24,500, and the common fixed expenses were $53,000. The contribution margin ratio for Product Q was 40%, its sales were $138,000, and its segment margin was $45,000. If the contribution margin for Product P was $43,000, the segment margin for Product P was:

Neef Corporation has provided the following data for its two most recent years of operation: The unit product cost under absorption costing in Year 1 is closest to:

Janos Corporation, which has only one product, has provided the following data concerning its most recent month of operations: The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.What is the unit product cost for the month under absorption costing?