Question 1

Under variable costing, only variable production costs are treated as product costs.

Accepted Answer

A) True 
 B)False  True

Question 2

Kray 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 variable costing unit product cost was:

Accepted Answer

A)  $91 per unit 
B)  $67 per unit 
C)  $69 per unit 
D)  $61 per unit 
A)  $91 per unit 
B)  $67 per unit 
C)  $69 per unit 
D)  $61 per unit B

Question 3

When unit sales are constant, but the number of units produced fluctuates and everything else remains the same, net operating income under variable costing will:

Accepted Answer

A)  fluctuate in direct proportion to changes in production. 
B)  remain constant. 
C)  fluctuate inversely with changes in production. 
D)  be greater than net operating income under absorption costing. 
A)  fluctuate in direct proportion to changes in production. 
B)  remain constant. 
C)  fluctuate inversely with changes in production. 
D)  be greater than net operating income under absorption costing. B

Question 4

Beamish 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 absorption costing unit product cost was:

Accepted Answer

A)  $93 per unit 
B)  $97 per unit 
C)  $136 per unit 
D)  $194 per unit 
A)  $93 per unit 
B)  $97 per unit 
C)  $136 per unit 
D)  $194 per unit

Question 5

Baraban Corporation has provided the following data for its most recent year of operation:     The net operating income (loss) under absorption costing closest to:

Accepted Answer

A)  ($4,000) 
B)  $9,000 
C)  $117,000 
D)  $72,000 
A)  ($4,000) 
B)  $9,000 
C)  $117,000 
D)  $72,000

Question 6

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:

Accepted Answer

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

Question 7

Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period:   The common fixed expenses have been allocated to the divisions on the basis of sales.
The Northern Division's break-even sales is closest to:

Accepted Answer

A)  $141,558 
B)  $197,078 
C)  $244,701 
D)  $386,408 
A)  $141,558 
B)  $197,078 
C)  $244,701 
D)  $386,408

Question 8

Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period:   The common fixed expenses have been allocated to the divisions on the basis of sales.
The Southern Division's break-even sales is closest to:

Accepted Answer

A)  $192,661 
B)  $265,119 
C)  $386,408 
D)  $130,508 
A)  $192,661 
B)  $265,119 
C)  $386,408 
D)  $130,508

Question 9

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

Accepted Answer

A)  $24.00 
B)  $33.00 
C)  $19.00 
D)  $38.00 
A)  $24.00 
B)  $33.00 
C)  $19.00 
D)  $38.00

Question 10

Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows:   Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost.
The contribution margin per unit was:

Accepted Answer

A)  $23.80 per unit 
B)  $31.00 per unit 
C)  $25.60 per unit 
D)  $19.00 per unit 
A)  $23.80 per unit 
B)  $31.00 per unit 
C)  $25.60 per unit 
D)  $19.00 per unit

Question 11

Muckleroy Corporation has two divisions: Division K and Division L. Data from the most recent month appear below:   Management has allocated common fixed expenses to the Divisions based on their sales. The break-even in sales dollars for Division K is closest to:

Accepted Answer

A)  $244,103 
B)  $206,154 
C)  $174,359 
D)  $470,945 
A)  $244,103 
B)  $206,154 
C)  $174,359 
D)  $470,945

Question 12

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?

Accepted Answer

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 
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

Question 13

Wyrich Corporation has two divisions: Blue Division and Gold Division. The following report is for the most recent operating period:   The company's overall break-even sales is closest to:

Accepted Answer

A)  $412,564 
B)  $506,409 
C)  $518,750 
D)  $106,186 
A)  $412,564 
B)  $506,409 
C)  $518,750 
D)  $106,186

Question 14

Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows:   Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. 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:

Accepted Answer

A)  $101,250 lower than under absorption costing. 
B)  $60,000 lower than under absorption costing. 
C)  $101,250 higher than under absorption costing. 
D)  $60,000 higher than under absorption costing. 
A)  $101,250 lower than under absorption costing. 
B)  $60,000 lower than under absorption costing. 
C)  $101,250 higher than under absorption costing. 
D)  $60,000 higher than under absorption costing.

Question 15

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

Accepted Answer

A)  $19.00 
B)  $24.00 
C)  $26.00 
D)  $31.00 
A)  $19.00 
B)  $24.00 
C)  $26.00 
D)  $31.00

Question 16

Gardella Corporation has two divisions: Domestic Division and Foreign Division. The following data are for the most recent operating period:   The common fixed expenses have been allocated to the divisions on the basis of sales.
The Foreign Division's break-even sales is closest to:

Accepted Answer

A)  $305,000 
B)  $249,412 
C)  $470,663 
D)  $177,941 
A)  $305,000 
B)  $249,412 
C)  $470,663 
D)  $177,941

Question 17

Corbett Corporation manufactures a single product. Last year, variable costing net operating income was $72,000. The fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $29,000.
Required:
Determine the absorption costing net operating income last year. Show your work!

Accepted Answer

The answer of Corbett Corporation manufactures a single product. Last...

Question 18

When sales exceed production and the company uses the LIFO inventory flow assumption, the net operating income reported under variable costing generally will be:

Accepted Answer

A)  less than net operating income reported under absorption costing. 
B)  greater than net operating income reported under absorption costing. 
C)  equal to net operating income reported under absorption costing. 
D)  higher or lower because no generalization can be made. 
A)  less than net operating income reported under absorption costing. 
B)  greater than net operating income reported under absorption costing. 
C)  equal to net operating income reported under absorption costing. 
D)  higher or lower because no generalization can be made.

Question 19

Danahy Corporation manufactures a single product. The following data pertain to the company's operations over the last two years:   What was the absorption costing net operating income this year?

Accepted Answer

A)  $62,000 
B)  $74,000 
C)  $70,000 
D)  $66,000 
A)  $62,000 
B)  $74,000 
C)  $70,000 
D)  $66,000

Question 20

Boylston Corporation has provided the following data for its two most recent years of operation. The company makes a product that it sells for $75 per unit. It began Year 1 with no units in beginning inventory.
     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.
c. Assume the company uses absorption costing. Prepare an income statement for each year.
d. Assume the company uses variable costing. Prepare an income statement for each year.

Accepted Answer

a. Absorption costing unit pro

Under variable costing, only variable production costs are treated as product costs.

Kray 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 variable costing unit product cost was:

When unit sales are constant, but the number of units produced fluctuates and everything else remains the same, net operating income under variable costing will:

Beamish 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 absorption costing unit product cost was:

Baraban Corporation has provided the following data for its most recent year of operation: The net operating income (loss) under absorption costing closest to:

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:

Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The Northern Division's break-even sales is closest to:

Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The Southern Division's break-even sales is closest to:

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

Muckleroy Corporation has two divisions: Division K and Division L. Data from the most recent month appear below: Management has allocated common fixed expenses to the Divisions based on their sales. The break-even in sales dollars for Division K is closest to:

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?

Wyrich Corporation has two divisions: Blue Division and Gold Division. The following report is for the most recent operating period: The company's overall break-even sales is closest to:

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

Gardella Corporation has two divisions: Domestic Division and Foreign Division. The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The Foreign Division's break-even sales is closest to:

When sales exceed production and the company uses the LIFO inventory flow assumption, the net operating income reported under variable costing generally will be:

Danahy Corporation manufactures a single product. The following data pertain to the company's operations over the last two years: What was the absorption costing net operating income this year?

Managerial Accounting and Cost Concepts

Costvolumeprofit Relationships

Joborder Costing: Calculating Unit Product Costs

Activitybased Costing: a Tool to Aid Decision Making

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Cost of Quality

Analyzing Mixed Costs

Activity-Based Absorption Costing

the Predetermined Overhead Rate and Capacity

Super-Variable Costing

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Pricing Decisions

the Concept of Present Value

Income Taxes and the Net Present Value Method

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

Filters

Exam 4: Variable Costing and Segment Reporting: Tools for Management

Under variable costing, only variable production costs are treated as product costs.

Kray 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 variable costing unit product cost was:

When unit sales are constant, but the number of units produced fluctuates and everything else remains the same, net operating income under variable costing will:

Beamish 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 absorption costing unit product cost was:

Baraban Corporation has provided the following data for its most recent year of operation: The net operating income (loss) under absorption costing closest to:

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:

Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The Northern Division's break-even sales is closest to:

Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The Southern Division's break-even sales is closest to:

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

Muckleroy Corporation has two divisions: Division K and Division L. Data from the most recent month appear below: Management has allocated common fixed expenses to the Divisions based on their sales. The break-even in sales dollars for Division K is closest to:

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?

Wyrich Corporation has two divisions: Blue Division and Gold Division. The following report is for the most recent operating period: The company's overall break-even sales is closest to:

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

Gardella Corporation has two divisions: Domestic Division and Foreign Division. The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The Foreign Division's break-even sales is closest to:

When sales exceed production and the company uses the LIFO inventory flow assumption, the net operating income reported under variable costing generally will be:

Danahy Corporation manufactures a single product. The following data pertain to the company's operations over the last two years: What was the absorption costing net operating income this year?

Managerial Accounting and Cost Concepts

Costvolumeprofit Relationships

Joborder Costing: Calculating Unit Product Costs

Activitybased Costing: a Tool to Aid Decision Making

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Cost of Quality

Analyzing Mixed Costs

Activity-Based Absorption Costing

the Predetermined Overhead Rate and Capacity

Super-Variable Costing

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Pricing Decisions

the Concept of Present Value

Income Taxes and the Net Present Value Method

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

Filters