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Exam 7: Variable Costing and Segment Reporting: Tools for Management

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Question 61

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Bateman Corporation,which has only one product,has provided the following data concerning its most recent month of operations: What is the unit product cost for the month under absorption costing?

A) $97 per unit
B) $108 per unit
C) $78 per unit
D) $89 per unit

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Question 62

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Mahugh Corporation,which has only one product,has provided the following data concerning its most recent month of operations: Required: a.What is the unit product cost for the month under variable costing? b.What is the unit product cost for the month under absorption costing? c.Prepare a contribution format income statement for the month using variable costing. d.Prepare an income statement for the month using absorption costing. e.Reconcile the variable costing and absorption costing net operating incomes for the month.

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a.& b.Unit product costs c.& d.Income ...

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Question 63

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Ragins Corporation produces a single product and has the following cost structure: The absorption costing unit product cost is:

The Dean Corporation produces and sells a single product.The following data refer to the year just completed: Assume that direct labor is a variable cost. Required: a.Compute the cost of a single unit of product under both the absorption costing and variable costing approaches. b.Prepare an income statement for the year using absorption costing. c.Prepare a contribution format income statement for the year using variable costing. d.Reconcile the absorption costing and variable costing net operating income figures in (b)and (c)above.

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:

When viewed over the long term,cumulative net operating income will be the same for variable and absorption costing if ending inventories exceed beginning inventories.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the total period cost for the month under variable costing?

Gabbert 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 variable costing?

Nantua Corporation has two divisions,Southern and Northern.The following information was taken from last year's income statement segmented by division: Net operating income last year for Nantua Corporation was $400,000. If the Northern Division's sales last year were $300,000 higher,how would this have changed Nantua's net operating income? (Assume no change in selling prices,variable expenses per unit,or fixed expenses. )

When using segmented income statements,the dollar sales for a company to break even equals the sum of the traceable fixed expenses and the common fixed expenses divided by the overall CM ratio.

Yankee Corporation manufactures a single product.The company has the following cost structure: Last year,4,000 units were produced and 3,500 units were sold.There were no beginning inventories. The carrying value on the balance sheet of the ending finished goods inventory under variable costing would be:

Aaker 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 variable costing?

Kosco Corporation produces a single product.The company's absorption costing income statement for March follows: During March,the company's variable production costs were $8 per unit and its fixed manufacturing overhead totaled $5,000. The contribution margin per unit during March was:

Under variable costing,fixed manufacturing overhead is:

Hogans Corporation has two divisions: Delta and Echo.Data from the most recent month appear below: The company's common fixed expenses total $64,090.The break-even in sales dollars for Echo Division is closest to:

Hanks Corporation produces 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 $4 per unit.Fixed manufacturing overhead was $18,000 in each year.This fixed manufacturing overhead was applied at a rate of $2 per unit.Variable selling and administrative expenses were $1 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.

Aaker Corporation,which has only one product,has provided the following data concerning its most recent month of operations: What is the unit product cost for the month under absorption costing?

Farron Corporation,which has only one product,has provided the following data concerning its most recent month of operations: What is the unit product cost for the month under variable costing?

Which of the following costs at a manufacturing company would be treated as a product cost under both absorption costing and variable costing?

Last year,Walters Corporation's variable costing net operating income was $60,800 and its inventory decreased by 200 units.Fixed manufacturing overhead cost was $3 per unit for both units in beginning and in ending inventory.What was the absorption costing net operating income last year?