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Under absorption costing, the unit product cost is:


A) $24 per unit
B) $20 per unit
C) $26 per unit
D) $29 per unit

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

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What was the absorption costing net operating income last year?


A) $50,000
B) $48,000
C) $52,000
D) $56,000

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

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The Consumer Division's break-even sales is closest to:


A) $215,942
B) $268,710
C) $488,153
D) $307,768

E) All of the above
F) None of the above

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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 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 D)
F) A) and C)

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What is the unit product cost for the month under absorption costing?


A) $81 per unit
B) $65 per unit
C) $85 per unit
D) $69 per unit

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

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The unit product cost under absorption costing in Year 2 is closest to:


A) $33.00
B) $9.00
C) $24.00
D) $37.00

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

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What is the unit product cost for the month under variable costing?


A) $61 per unit
B) $37 per unit
C) $32 per unit
D) $66 per unit

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

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Allocating common fixed costs to segments on segmented income statements increases the usefulness of such statements.

A) True
B) False

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The company's overall break-even sales is closest to:


A) $94,243
B) $271,743
C) $264,685
D) $358,929

E) None of the above
F) All of the above

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Else Corporation has provided the following data for its two most recent years of operation: Else Corporation has provided the following data for its two most recent years of operation: Required: a.Assume the company uses absorption costing.Compute the unit product cost in each year. b.Assume the company uses variable costing.Compute the unit product cost in each year. Else Corporation has provided the following data for its two most recent years of operation: Required: a.Assume the company uses absorption costing.Compute the unit product cost in each year. b.Assume the company uses variable costing.Compute the unit product cost in each year. Required: a.Assume the company uses absorption costing.Compute the unit product cost in each year. b.Assume the company uses variable costing.Compute the unit product cost in each year.

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a.Absorption costing unit prod...

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A cost that would be included in product costs under both absorption costing and variable costing is:


A) supervisory salaries.
B) factory rent.
C) variable manufacturing costs.
D) variable selling expenses.

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

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C

The unit product cost under absorption costing is:


A) $247 per unit
B) $166 per unit
C) $332 per unit
D) $171 per unit

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

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The total contribution margin for the month under variable costing is:


A) $70,400
B) $149,600
C) $166,600
D) $91,800

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

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Gulinson Corporation has two divisions: Division A and Division B.Data from the most recent month appear below: Gulinson Corporation has two divisions: Division A and Division B.Data from the most recent month appear below: The break-even in sales dollars for Division A is closest to: A) $134,694 B) $184,531 C) $487,179 D) $267,367 The break-even in sales dollars for Division A is closest to:


A) $134,694
B) $184,531
C) $487,179
D) $267,367

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

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What is the total period cost for the month under variable costing?


A) $54,400
B) $69,400
C) $57,400
D) $15,000

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

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The net operating income (loss) under absorption costing is closest to:


A) $104,000
B) $33,000
C) $3,000
D) $136,000

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

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Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Nelter 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. Required: a.Prepare a contribution format income statement for the month using variable costing. b.Prepare an income statement for the month using absorption costing. 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. Required: a.Prepare a contribution format income statement for the month using variable costing. b.Prepare an income statement for the month using absorption costing.

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a.Unit product cost under variable costi...

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Fowler Corporation manufactures a single product.Operating data for the company and its absorption costing income statements for the last two years are presented below: Fowler Corporation manufactures a single product.Operating data for the company and its absorption costing income statements for the last two years are presented below: Variable manufacturing costs are $6 per unit.Fixed manufacturing overhead totals $72,000 in each year.This fixed manufacturing overhead is applied at the rate of $4 per unit.Variable selling and administrative expenses are $2 per unit sold. Required: a.Compute the unit product cost in each year under variable costing. b.Prepare new income statements for each year using variable costing. c.Reconcile the absorption costing and variable costing net operating income for each year. Fowler Corporation manufactures a single product.Operating data for the company and its absorption costing income statements for the last two years are presented below: Variable manufacturing costs are $6 per unit.Fixed manufacturing overhead totals $72,000 in each year.This fixed manufacturing overhead is applied at the rate of $4 per unit.Variable selling and administrative expenses are $2 per unit sold. Required: a.Compute the unit product cost in each year under variable costing. b.Prepare new income statements for each year using variable costing. c.Reconcile the absorption costing and variable costing net operating income for each year. Variable manufacturing costs are $6 per unit.Fixed manufacturing overhead totals $72,000 in each year.This fixed manufacturing overhead is applied at the rate of $4 per unit.Variable selling and administrative expenses are $2 per unit sold. Required: a.Compute the unit product cost in each year under variable costing. b.Prepare new income statements for each year using variable costing. c.Reconcile the absorption costing and variable costing net operating income for each year.

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a.The unit product cost under variable costing is the variable manufacturing cost of $6 per unit and is the same in each year. b.Fixed selling and administrative expense = Total selling and administrative expense - Variable selling and administrative expense = $80,000 - ($2 per unit × 15,000 units)= $50,000 11ea7998_5def_3924_911b_354a396b274a_TB2627_00_TB2627_00 c.Reconciliation 11ea7998_5def_6035_911b_4beb0a73867e_TB2627_00_TB2627_00 Year 1: Manufacturing overhead deferred in (released from)inventory = Fixed manufacturing overhead in ending inventory - Fixed manufacturing overhead in beginning inventory = ($4 per unit × 3,000 units)- $0 = $12,000 Year 2: Manufacturing overhead deferred in (released from)inventory = Fixed manufacturing overhead in ending inventory - Fixed manufacturing overhead in beginning inventory = ($4 per unit × 1,000 units)- ($4 per unit × 3,000 units)= -$8,000 11ea7998_5def_6036_911b_7151c2519dee_TB2627_00_TB2627_00

Truo Corporation produces a single product.Last year, the company had net operating income of $100,000 using variable costing.Beginning and ending inventories were 13,000 units and 18,000 units, respectively.If the fixed manufacturing overhead cost was $4 per unit both last year and this year, what would have been the net operating income using absorption costing?


A) $80,000
B) $100,000
C) $120,000
D) $172,000

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

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C

A properly constructed segmented income statement in a contribution format would show that the segment margin of the Consumer business segment is:


A) $164,000
B) $62,000
C) $394,000
D) $184,000

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

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