Question 1

A cost that would be included in product costs under both absorption costing and variable costing is:

Accepted Answer

A)  supervisory salaries. 
B)  factory rent. 
C)  variable manufacturing costs. 
D)  variable selling expenses. 
A)  supervisory salaries. 
B)  factory rent. 
C)  variable manufacturing costs. 
D)  variable selling expenses.

Question 2

The Dorset Corporation produces and sells a single product.The following data refer to the year just completed:
   Assume that direct labor is a variable cost.
Required:
a.Compute the unit product cost under both the absorption costing and variable costing approaches.
b.Prepare an income statement for the year using absorption costing.
c.Prepare an income statement for the year using variable costing.
d.Reconcile the absorption costing and variable costing net operating income figures in (b)and (c)above.

Accepted Answer

a.Cost per unit under absorption costing

Question 3

Azuki Corporation operates in two sales territories, Urban and Rural. Data concerning last year's operations appear below:
   Azuki's common fixed expenses were $25,000 last year.
-If operations in the Rural Sales Territory would have been discontinued at the beginning of last year,how would this have changed the net operating income of Azuki Corporation as a whole?

Accepted Answer

A)  $5,000 increase 
B)  $6,000 increase 
C)  $11,000 increase 
D)  $24,000 decrease 
A)  $5,000 increase 
B)  $6,000 increase 
C)  $11,000 increase 
D)  $24,000 decrease

Question 4

Bryans 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)  $37,000 
B)  $132,000 
C)  $108,000 
D)  $16,000 
A)  $37,000 
B)  $132,000 
C)  $108,000 
D)  $16,000

Question 5

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 6

Mandato 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)  $74,000 
B)  $216,000 
C)  $261,000 
D)  $68,000 
A)  $74,000 
B)  $216,000 
C)  $261,000 
D)  $68,000

Question 7

Mandato 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)  $126,000 
B)  $96,000 
C)  $26,000 
D)  $2,000 
A)  $126,000 
B)  $96,000 
C)  $26,000 
D)  $2,000

Question 8

Farris 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?

Accepted Answer

A)  $61 per unit 
B)  $37 per unit 
C)  $32 per unit 
D)  $66 per unit 
A)  $61 per unit 
B)  $37 per unit 
C)  $32 per unit 
D)  $66 per unit

Question 9

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

The answer of In its first year of operations,Bronfren Corporation...

Question 10

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:

Accepted Answer

A)  $146,756 
B)  $336,719 
C)  $214,902 
D)  $107,317 
A)  $146,756 
B)  $336,719 
C)  $214,902 
D)  $107,317

Question 11

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 12

Neef Corporation has provided the following data for its two most recent years of operation:
    
-Which of the following statements is true for Year 1?

Accepted Answer

A)  The amount of fixed manufacturing overhead released from inventories is $108,000 
B)  The amount of fixed manufacturing overhead deferred in inventories is $513,000 
C)  The amount of fixed manufacturing overhead released from inventories is $513,000 
D)  The amount of fixed manufacturing overhead deferred in inventories is $108,000 
A)  The amount of fixed manufacturing overhead released from inventories is $108,000 
B)  The amount of fixed manufacturing overhead deferred in inventories is $513,000 
C)  The amount of fixed manufacturing overhead released from inventories is $513,000 
D)  The amount of fixed manufacturing overhead deferred in inventories is $108,000

Question 13

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 14

Pacheo Corporation,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.
Required:
a.What is the unit product cost for the month under variable costing?
b.Prepare a contribution format income statement for the month using variable costing.
c.Without preparing an income statement,determine the absorption costing net operating income for the month.(Hint:
 Use the reconciliation method.)

Accepted Answer

a.Variable costing unit product cost
 @#IMG-DLM& b

Question 15

Kern Corporation produces a single product. Selected information concerning the operations of the company follow:
   Assume that direct labor is a variable cost.
-Under variable costing,the value of the ending finished goods inventory would be:

Accepted Answer

A)  $7,200 
B)  $7,650 
C)  $8,000 
D)  $9,700 
A)  $7,200 
B)  $7,650 
C)  $8,000 
D)  $9,700

Question 16

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

Accepted Answer

A)  $102,174 
B)  $261,043 
C)  $142,043 
D)  $518,750 
A)  $102,174 
B)  $261,043 
C)  $142,043 
D)  $518,750

Question 17

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 18

Lenart Corporation has provided the following data for its two most recent years of operation:
    
-The unit product cost under absorption costing in Year 2 is closest to:

Accepted Answer

A)  $39.00 
B)  $23.00 
C)  $10.00 
D)  $33.00 
A)  $39.00 
B)  $23.00 
C)  $10.00 
D)  $33.00

Question 19

Last year,Rasband Corporation's variable costing net operating income was $57,000.The fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $30,000.
Required:
Determine the absorption costing net operating income last year.Show your work!

Accepted Answer

The answer of Last year,Rasband Corporation's variable costing net operating...

Question 20

Pavelko Corporation has provided the following data for its two most recent years of operation:
    
-The unit product cost under variable costing in Year 2 is closest to:

Accepted Answer

A)  $23.00 
B)  $38.00 
C)  $32.00 
D)  $29.00 
A)  $23.00 
B)  $38.00 
C)  $32.00 
D)  $29.00

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

A cost that would be included in product costs under both absorption costing and variable costing is:

Bryans 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:

Mandato 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:

Mandato 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:

Farris 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?

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:

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:

Neef Corporation has provided the following data for its two most recent years of operation: -Which of the following statements is true for Year 1?

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:

Kern Corporation produces a single product. Selected information concerning the operations of the company follow: Assume that direct labor is a variable cost. -Under variable costing,the value of the ending finished goods inventory would be:

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

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:

Lenart Corporation has provided the following data for its two most recent years of operation: -The unit product cost under absorption costing in Year 2 is closest to:

Last year,Rasband Corporation's variable costing net operating income was $57,000.The fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $30,000. Required: Determine the absorption costing net operating income last year.Show your work!

Pavelko Corporation has provided the following data for its two most recent years of operation: -The unit product cost under variable costing in Year 2 is closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Super-Variable Costing

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Cost of Quality

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Job-Order Costing: a Microsoft Excel-Based Approach

Fifo Method

Service Department Allocations

Analyzing Mixed Costs

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

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Transfer Pricing

Service Department Charges

Pricing Decisions

The Concept of Present Value

Income Taxes and the Present Value Method

the Direct Method of Determining the Net Cash Provided by Operating Activities

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