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Harris Company produces a single product.Last year,Harris manufactured 17,000 units and sold 13,000 units.Production costs for the year were as follows: Harris Company produces a single product.Last year,Harris manufactured 17,000 units and sold 13,000 units.Production costs for the year were as follows: Sales were $780,000 for the year,variable selling and administrative expenses were $88,400,and fixed selling and administrative expenses were $170,000.There was no beginning inventory.Assume that direct labor is a variable cost. -The contribution margin per unit was: A) $17.50 B) $32.50 C) $27.30 D) $25.70 Sales were $780,000 for the year,variable selling and administrative expenses were $88,400,and fixed selling and administrative expenses were $170,000.There was no beginning inventory.Assume that direct labor is a variable cost. -The contribution margin per unit was:


A) $17.50
B) $32.50
C) $27.30
D) $25.70

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

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Faxon Company,which has only one product,has provided the following data concerning its most recent month of operations: Faxon Company,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) $2,300 B) $(600) C) $9,300 D) $11,600 -What is the net operating income for the month under variable costing?


A) $2,300
B) $(600)
C) $9,300
D) $11,600

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

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Caparros Corporation manufactures a variety of products.Variable costing net operating income was $62,800 last year and was $74,900 this year.Last year,ending inventory decreased by 3,300 units.This year,ending inventory increased by 1,900 units.Fixed manufacturing overhead cost is $7 per unit. -What was the absorption costing net operating income last year?


A) $72,600
B) $85,900
C) $62,800
D) $39,700

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

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Last year,Brunkow Corporation's variable costing net operating income was $93,500 and ending inventory increased by 800 units.Fixed manufacturing overhead cost per unit was $7. Required: Determine the absorption costing net operating income for last year.Show your work!

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Net operating income computed using variable costing would exceed net operating income computed using absorption costing if:


A) units sold exceed units produced.
B) units sold are less than units produced.
C) units sold equal units produced.
D) the average fixed cost per unit is zero.

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

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Jarmon Company,which has only one product,has provided the following data concerning its most recent month of operations: Jarmon Company,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? A) $78 B) $73 C) $105 D) $110 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?


A) $78
B) $73
C) $105
D) $110

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

Correct Answer

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Ilford Company,which has only one product,has provided the following data concerning its most recent month of operations: Ilford Company,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? A) $87 B) $64 C) $68 D) $83 -What is the unit product cost for the month under variable costing?


A) $87
B) $64
C) $68
D) $83

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

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Botwinick Corporation manufactures a variety of products.The following data pertain to the company's operations over the last two years: Botwinick Corporation manufactures a variety of products.The following data pertain to the company's operations over the last two years: -What was the absorption costing net operating income last year? A) $57,000 B) $28,000 C) $58,000 D) $88,000 -What was the absorption costing net operating income last year?


A) $57,000
B) $28,000
C) $58,000
D) $88,000

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

Correct Answer

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Slovick Inc. ,which produces a single product,has provided the following data for its most recent month of operations: Slovick Inc. ,which produces a single product,has provided the following data for its most recent month of operations: There were no beginning or ending inventories. -The unit product cost under absorption costing was: A) $161 B) $199 C) $262 D) $168 There were no beginning or ending inventories. -The unit product cost under absorption costing was:


A) $161
B) $199
C) $262
D) $168

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

Correct Answer

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Faxon Company,which has only one product,has provided the following data concerning its most recent month of operations: Faxon Company,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) $99 B) $131 C) $122 D) $108 -What is the unit product cost for the month under absorption costing?


A) $99
B) $131
C) $122
D) $108

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

Correct Answer

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Abdol Company,which has only one product,has provided the following data concerning its most recent month of operations: Abdol Company,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? A) $73 B) $44 C) $79 D) $38 -What is the unit product cost for the month under variable costing?


A) $73
B) $44
C) $79
D) $38

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

Correct Answer

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Which of the following statements is true?


A) When production exceeds sales,a manufacturing company's variable costing net operating income will usually be greater than its absorption costing net operating income.
B) The variable costing method is usually not used for external reporting purposes.
C) The absorption costing method treats fixed production costs as period costs.
D) All of the above.

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

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Clubb Company,which has only one product,has provided the following data concerning its most recent month of operations: Clubb Company,which has only one product,has provided the following data concerning its most recent month of operations: -The total contribution margin for the month under the variable costing approach is: A) $38,000 B) $92,000 C) $170,200 D) $119,600 -The total contribution margin for the month under the variable costing approach is:


A) $38,000
B) $92,000
C) $170,200
D) $119,600

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

Correct Answer

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A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: The total contribution margin for the month under variable costing is: A) $83,900 B) $221,400 C) $135,000 D) $270,000 The total contribution margin for the month under variable costing is:


A) $83,900
B) $221,400
C) $135,000
D) $270,000

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

Correct Answer

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Kidwell Company,which has only one product,has provided the following data concerning its most recent month of operations: Kidwell Company,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 net operating income for the month under variable costing? A) $5,800 B) $5,400 C) $8,300 D) $16,000 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 net operating income for the month under variable costing?


A) $5,800
B) $5,400
C) $8,300
D) $16,000

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

Correct Answer

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Direct labor is always considered to be a product cost under variable costing.

A) True
B) False

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Under variable costing,the company's net operating income for the year would be:


A) $60,000 higher than under absorption costing
B) $108,000 higher than under absorption costing
C) $108,000 lower than under absorption costing
D) $60,000 lower than under absorption costing

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

Correct Answer

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Showing 121 - 137 of 137

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