Question 1

Simila Corporation has provided the following data for its most recent year of operation:     Which of the following statements is true?

Accepted Answer

A)  The amount of fixed manufacturing overhead released from inventories is $459,000 
B)  The amount of fixed manufacturing overhead deferred in inventories is $56,000 
C)  The amount of fixed manufacturing overhead released from inventories is $56,000 
D)  The amount of fixed manufacturing overhead deferred in inventories is $459,000 
A)  The amount of fixed manufacturing overhead released from inventories is $459,000 
B)  The amount of fixed manufacturing overhead deferred in inventories is $56,000 
C)  The amount of fixed manufacturing overhead released from inventories is $56,000 
D)  The amount of fixed manufacturing overhead deferred in inventories is $459,000

Question 2

Ober Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
   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.

Accepted Answer

a. Unit product cost under var

Question 3

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 Retail Division's break-even sales is closest to:

Accepted Answer

A)  $369,408 
B)  $421,526 
C)  $584,815 
D)  $285,526 
A)  $369,408 
B)  $421,526 
C)  $584,815 
D)  $285,526

Question 4

Ieso Corporation has two stores: J and K. During November, Ieso Corporation reported a net operating income of $30,000 and sales of $450,000. The contribution margin in Store J was $100,000, or 40% of sales. The segment margin in Store K was $30,000, or 15% of sales. Traceable fixed expenses are $60,000 in Store J, and $40,000 in Store K. Ieso Corporation's total fixed expenses for the year were:

Accepted Answer

A)  $40,000 
B)  $100,000 
C)  $140,000 
D)  $170,000 
A)  $40,000 
B)  $100,000 
C)  $140,000 
D)  $170,000

Question 5

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

Accepted Answer

A)  $234,000 
B)  $9,000 
C)  ($4,000) 
D)  $189,000 
A)  $234,000 
B)  $9,000 
C)  ($4,000) 
D)  $189,000

Question 6

In its first year of operations, Bronfren Corporation produced 800,000 sets and sold 780,000 sets of artificial tan lines. What would have happened to net operating income in this first year under the following costing methods if Bronfren had produced 20,000 fewer sets? (Assume that Bronfren has both variable and fixed production costs.)

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D

Question 7

Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $580,000, variable expenses of $301,600, and traceable fixed expenses of $186,500. The Alpha Division has sales of $510,000, variable expenses of $178,500, and traceable fixed expenses of $222,100. The total amount of common fixed expenses not traceable to the individual divisions is $235,500. What is the company's net operating income?

Accepted Answer

A)  $374,400 
B)  $201,300 
C)  $609,900 
D)  ($34,200) 
A)  $374,400 
B)  $201,300 
C)  $609,900 
D)  ($34,200)

Question 8

Fausnaught Corporation has two major business segments--Retail and Wholesale. In October, the Retail business segment had sales revenues of $730,000, variable expenses of $409,000, and traceable fixed expenses of $117,000. During the same month, the Wholesale business segment had sales revenues of $400,000, variable expenses of $220,000, and traceable fixed expenses of $48,000. Common fixed expenses totaled $218,000 and were allocated as follows: $122,000 to the Retail business segment and $96,000 to the Wholesale business segment.
Required:
Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.

Accepted Answer

The answer of Fausnaught Corporation has two major business segments--Retail...

Question 9

Gabuat 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 the absorption costing?

Accepted Answer

A)  $24,200 
B)  $8,800 
C)  $58,000 
D)  $33,800 
A)  $24,200 
B)  $8,800 
C)  $58,000 
D)  $33,800

Question 10

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:

Accepted Answer

A)  $6,000 
B)  $99,000 
C)  ($2,000) 
D)  $71,000 
A)  $6,000 
B)  $99,000 
C)  ($2,000) 
D)  $71,000

Question 11

Clouthier Corporation has two divisions: Home Division and Commercial Division. The following report is for the most recent operating period:
   The company's common fixed expenses total $29,700.
Required:
a. What is the Home Division's break-even in sales dollars?
b. What is the Commercial Division's break-even in sales dollars?
c. What is the company's overall break-even in sales dollars?

Accepted Answer

@#IMG-DLM& a. Home Division break-even:
Segment CM

Question 12

Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $255,000 and the Export Products Division's divisional segment margin is $59,800. The total amount of common fixed expenses not traceable to the individual divisions is $163,700. What is the company's net operating income?

Accepted Answer

A)  $314,800 
B)  ($314,800) 
C)  $151,100 
D)  $478,500 
A)  $314,800 
B)  ($314,800) 
C)  $151,100 
D)  $478,500

Question 13

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

Accepted Answer

A)  $518,750 
B)  $405,299 
C)  $381,481 
D)  $310,390 
A)  $518,750 
B)  $405,299 
C)  $381,481 
D)  $310,390

Question 14

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

Accepted Answer

A)  $272,067 
B)  $328,299 
C)  $114,341 
D)  $386,408 
A)  $272,067 
B)  $328,299 
C)  $114,341 
D)  $386,408

Question 15

Hadley 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?

Accepted Answer

A)  $75,500 
B)  $43,200 
C)  $55,700 
D)  $32,300 
A)  $75,500 
B)  $43,200 
C)  $55,700 
D)  $32,300

Question 16

Fernstrom Corporation has two divisions: East and West. Data from the most recent month appear below:   The company's common fixed expenses total $52,140. If the company operates at exactly the break-even sales of the East Division and West Division, what would be the company's overall net operating income?

Accepted Answer

A)  $0 
B)  ($235,140) 
C)  ($52,140) 
D)  $30,540 
A)  $0 
B)  ($235,140) 
C)  ($52,140) 
D)  $30,540

Question 17

Mccrone 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:

Accepted Answer

A)  $380,000 
B)  $340,000 
C)  $180,000 
D)  $172,000 
A)  $380,000 
B)  $340,000 
C)  $180,000 
D)  $172,000

Question 18

Plummer 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:

Accepted Answer

A)  $31,000 
B)  $26,000 
C)  $132,000 
D)  $92,000 
A)  $31,000 
B)  $26,000 
C)  $132,000 
D)  $92,000

Question 19

Ferrar Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for March appear below:   In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 to the Commercial business segment.
A properly constructed segmented income statement in a contribution format would show that the segment margin of the Consumer business segment is:

Accepted Answer

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

Question 20

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 Domestic Division's break-even sales is closest to:

Accepted Answer

A)  $309,474 
B)  $157,895 
C)  $224,211 
D)  $470,663 
A)  $309,474 
B)  $157,895 
C)  $224,211 
D)  $470,663

Simila Corporation has provided the following data for its most recent year of operation: Which of the following statements is true?

Ober Corporation, which has only one product, has provided the following data concerning its most recent month of operations: 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.

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 Retail Division's break-even sales is closest to:

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

Gabuat 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 the absorption 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:

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

Hadley 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?

Mccrone 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:

Plummer 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:

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 Domestic Division's break-even sales is closest to:

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