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

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. Sales in Store J totaled:

Wolanski Corporation has provided the following data for its most recent year of operations: The unit product cost under absorption 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 variable costing?

The Southern Corporation manufactures a single product and has the following cost structure: Last year, 7,000 units were produced and 6,800 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:

Aaron 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?

Quates Corporation produces a single product and has the following cost structure: Required: Compute the unit product cost under absorption costing. Show your work!

Carlton Corporation has two divisions: Delta and Echo. Data from the most recent month appear below: The company's common fixed expenses total $44,110. The break-even in sales dollars for Echo Division is closest to:

Hadley Corporation, 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 variable costing is:

The Carlsbad Corporation produces and markets two types of electronic calculators: Model 4A and Model 5A. The following data were gathered on activities during the third quarter: Required: Prepare a segmented income statement for last quarter. The statement should provide sufficient detail to allow the company to evaluate the performance of the manager of each product line.

Which of the following will usually be found on an income statement prepared using absorption costing?

McCoy Corporation manufactures a computer monitor. Shown below is McCoy's cost structure: In its first year of operations, McCoy produced 100,000 monitors but only sold 95,000. McCoy's gross margin in this first year was $2,629,600. McCoy's contribution margin in this first year was $2,109,000. Under absorption costing, what is McCoy's net operating income for its first year?

Helmers Corporation manufactures a single product. Variable costing net operating income last year was $86,000 and this year was $103,000. Last year, $32,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $12,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing. What was the absorption costing net operating income last year?

Segment margin is sales less variable expenses less traceable fixed expenses.

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

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

Koff Corporation has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period: Required: a. What is the Garden Division's break-even in sales dollars? b. What is the Farm Division's break-even in sales dollars? c. What is the company's overall break-even in sales dollars? d. What would be the company's overall net operating income if the company operated at its two division's break-even points?

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

Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The Eastern Division's break-even sales is closest to:

Schlenz Inc., which produces a single product, has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. Required: Compute the unit product cost under variable costing. Show your work!

Aaron 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?