Question 1

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

Accepted Answer

A)  $128 per unit 
B)  $125 per unit 
C)  $202 per unit 
D)  $131 per unit 
A)  $128 per unit 
B)  $125 per unit 
C)  $202 per unit 
D)  $131 per unit

Question 2

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

Accepted Answer

A)  $59 per unit 
B)  $83 per unit 
C)  $87 per unit 
D)  $55 per unit 
A)  $59 per unit 
B)  $83 per unit 
C)  $87 per unit 
D)  $55 per unit

Question 3

Neef 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 released from inventories is $12,000 
B)  The amount of fixed manufacturing overhead released from inventories is $654,000 
C)  The amount of fixed manufacturing overhead deferred in inventories is $12,000 
D)  The amount of fixed manufacturing overhead deferred in inventories is $654,000 
A)  The amount of fixed manufacturing overhead released from inventories is $12,000 
B)  The amount of fixed manufacturing overhead released from inventories is $654,000 
C)  The amount of fixed manufacturing overhead deferred in inventories is $12,000 
D)  The amount of fixed manufacturing overhead deferred in inventories is $654,000

Question 4

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 5

Fowler Corporation manufactures 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 $6 per unit. Fixed manufacturing overhead totals $72,000 in each year. This fixed manufacturing overhead is applied at the rate of $4 per unit. Variable selling and administrative expenses are $2 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.

Accepted Answer

a.The unit product cost under variable c

Question 6

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

Accepted Answer

A)  $21.00 
B)  $31.00 
C)  $35.00 
D)  $10.00 
A)  $21.00 
B)  $31.00 
C)  $35.00 
D)  $10.00

Question 7

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

Accepted Answer

A)  $124 per unit 
B)  $132 per unit 
C)  $113 per unit 
D)  $143 per unit 
A)  $124 per unit 
B)  $132 per unit 
C)  $113 per unit 
D)  $143 per unit

Question 8

Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations:   The total gross margin for the month under the absorption costing approach is:

Accepted Answer

A)  $73,920 
B)  $95,040 
C)  $73,920. 
D)  $147,840 
A)  $73,920 
B)  $95,040 
C)  $73,920. 
D)  $147,840

Question 9

Aaron Corporation, 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?

Accepted Answer

A)  $12,000 
B)  $(20,400) 
C)  $5,600 
D)  $6,400 
A)  $12,000 
B)  $(20,400) 
C)  $5,600 
D)  $6,400

Question 10

Neef Corporation has provided the following data for its two most recent years of operation:   The net operating income (loss) under absorption costing in Year 1 is closest to:

Accepted Answer

A)  $137,000 
B)  $198,000 
C)  $29,000 
D)  $243,000 
A)  $137,000 
B)  $198,000 
C)  $29,000 
D)  $243,000

Question 11

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 12

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?

Accepted Answer

A)  $260,700 
B)  $157,500 
C)  $380,700 
D)  $418,200 
A)  $260,700 
B)  $157,500 
C)  $380,700 
D)  $418,200

Question 13

Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $38,300 and the Export Products Division's divisional segment margin is $90,700. The total amount of common fixed expenses not traceable to the individual divisions is $102,000. What is the company's net operating income (loss)?

Accepted Answer

A)  $231,000 
B)  $129,000 
C)  $27,000 
D)  ($129,000) 
A)  $231,000 
B)  $129,000 
C)  $27,000 
D)  ($129,000)

Question 14

Eyestone Corporation has two divisions, A and B. The following data pertain to operations in October:   If common fixed expenses were $17,000, total fixed expenses were:

Accepted Answer

A)  $48,000 
B)  $13,000 
C)  $31,000 
D)  $53,000 
A)  $48,000 
B)  $13,000 
C)  $31,000 
D)  $53,000

Question 15

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

Accepted Answer

A)  $21.00 
B)  $31.00 
C)  $35.00 
D)  $25.00 
A)  $21.00 
B)  $31.00 
C)  $35.00 
D)  $25.00

Question 16

Assuming that direct labor is a variable cost, the primary difference between the absorption and variable costing is that:

Accepted Answer

A)  variable costing treats only direct materials and direct labor as product cost while absorption costing treats direct materials, direct labor, and the variable portion of manufacturing overhead as product costs. 
B)  variable costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs while absorption costing treats only direct materials, direct labor, and the variable portion of manufacturing overhead as product costs. 
C)  variable costing treats only direct materials, direct labor, the variable portion of manufacturing overhead, and the variable portion of selling and administrative expenses as product cost while absorption costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs. 
D)  variable costing treats only direct materials, direct labor, and the variable portion of manufacturing overhead as product costs while absorption costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs. 
A)  variable costing treats only direct materials and direct labor as product cost while absorption costing treats direct materials, direct labor, and the variable portion of manufacturing overhead as product costs. 
B)  variable costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs while absorption costing treats only direct materials, direct labor, and the variable portion of manufacturing overhead as product costs. 
C)  variable costing treats only direct materials, direct labor, the variable portion of manufacturing overhead, and the variable portion of selling and administrative expenses as product cost while absorption costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs. 
D)  variable costing treats only direct materials, direct labor, and the variable portion of manufacturing overhead as product costs while absorption costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs.

Question 17

Letcher Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:   The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 56,000 units and sold 54,000 units. The company's only product is sold for $227 per unit.The company is considering using either super-variable costing or an absorption costing system that assigns $11 of direct labor cost and $62 of fixed manufacturing overhead to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?

Accepted Answer

A)  Super-variable costing net operating income exceeds absorption costing net operating income by $146,000. 
B)  Absorption costing net operating income exceeds super-variable costing net operating income by $124,000. 
C)  Super-variable costing net operating income exceeds absorption costing net operating income by $124,000. 
D)  Absorption costing net operating income exceeds super-variable costing net operating income by $146,000. 
A)  Super-variable costing net operating income exceeds absorption costing net operating income by $146,000. 
B)  Absorption costing net operating income exceeds super-variable costing net operating income by $124,000. 
C)  Super-variable costing net operating income exceeds absorption costing net operating income by $124,000. 
D)  Absorption costing net operating income exceeds super-variable costing net operating income by $146,000.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

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

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

Neef Corporation has provided the following data for its two most recent years of operation: Which of the following statements is true for Year 2?

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:

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

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

Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: The total gross margin for the month under the absorption costing approach is:

Aaron Corporation, 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?

Neef Corporation has provided the following data for its two most recent years of operation: The net operating income (loss) under absorption costing in Year 1 is closest to:

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?

Eyestone Corporation has two divisions, A and B. The following data pertain to operations in October: If common fixed expenses were $17,000, total fixed expenses were:

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

Assuming that direct labor is a variable cost, the primary difference between the absorption and variable costing is that:

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

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?

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:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Responsibility Accounting Systems

Strategic Performance Measurement

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

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Exam 6: Variable Costing and Segment Reporting: Tools for Management

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

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

Neef Corporation has provided the following data for its two most recent years of operation: Which of the following statements is true for Year 2?

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:

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

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

Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: The total gross margin for the month under the absorption costing approach is:

Aaron Corporation, 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?

Neef Corporation has provided the following data for its two most recent years of operation: The net operating income (loss) under absorption costing in Year 1 is closest to:

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?

Eyestone Corporation has two divisions, A and B. The following data pertain to operations in October: If common fixed expenses were $17,000, total fixed expenses were:

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

Assuming that direct labor is a variable cost, the primary difference between the absorption and variable costing is that:

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

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?

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:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Responsibility Accounting Systems

Strategic Performance Measurement

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters