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

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:

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 last year?

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!

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

Nantor Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division: Net operating income last year for Nantua Corporation was $800,000. -If the Northern Division's sales last year were $600,000 higher,how would this have changed Nantua's net operating income? (Assume no change in selling prices,variable expenses per unit,or fixed expenses.)

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 absorption costing?

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

Succulent Juice Corporation manufactures and sells premium tomato juice by the gallon.Succulent just finished its first year of operations.The following data relates to this first year: Required: Using absorption costing,prepare Succulent Juice Corporation's income statement for the year.

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

Holts Corporation has two divisions: Xi and Sigma.Data from the most recent month appear below: The company's common fixed expenses total $78,840.The break-even in sales dollars for Sigma Division is closest to:

Hayworth Corporation has just segmented last year's income statement into its ten product lines.The chief executive officer (CEO)is curious as to what effect dropping one of the product lines at the beginning of last year would have had on overall company profit.What is the best number for the CEO to look at to determine the effect of this elimination on the net operating income of the company as a whole?

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

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. -What was Azuki Corporation's overall net operating income for last year?

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. -The contribution margin of the Commercial business segment is:

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?

Bryans 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:

Nantor Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division: Net operating income last year for Nantua Corporation was $800,000. -In last year's income statement segmented by division,what were Nantua's total common fixed expenses?

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:

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?

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: