Exam 7: Variable Costing and Segment Reporting: Tools for Management

The Western Division's break-even sales is closest to:

Ieso Corporation's total fixed expenses for the year were:

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.

If the Northern Division's sales last year were $600,000 higher, how would this have changed Nantuor's net operating income? (Assume no change in selling prices, variable expenses per unit, or fixed expenses.)

Cadavieco Corporation has provided the following data for its two most recent years of operation: Required: a.Assume the company uses absorption costing.Compute the unit product cost in each year. b.Assume the company uses absorption costing.Prepare an income statement for each year. c.Assume the company uses variable costing.Compute the unit product cost in each year. d.Assume the company uses variable costing.Prepare an income statement for each year.

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.

Last year, Kirsten Corporation's variable costing net operating income was $63,400.Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $10,700.What was the absorption costing net operating income last year?

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

What is the unit product cost for the month under absorption costing?

Under absorption costing, what is McCoy's net operating income for its first year?

The Business Division's break-even sales is closest to:

What is the net operating income for the month under absorption costing?

Segmented statements for internal use should not be prepared using the contribution format.

The unit product cost under absorption costing in Year 2 is closest to:

J Corporation has two divisions.Division A has a contribution margin of $79,300 and Division B has a contribution margin of $126,200.If total traceable fixed expenses are $72,400 and total common fixed expenses are $34,900, what is J Corporation's net operating income?

A company has two divisions, each selling several products.If segment reports are prepared for each product, the division managers' salaries should be considered as common fixed costs of the products.

When unit sales are constant, but the number of units produced fluctuates and everything else remains the same, net operating income under variable costing will:

Badoni 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:

What is the total period cost for the month under variable costing?

Omstadt Corporation produces and sells only two products that are referred to as RIPS and PITS.Production is "for order" only, and no finished goods inventories are maintained; work in process inventories are negligible.The following data relate to last month's operations: $36,000 of the manufacturing overhead assigned to RIPS and $72,000 of that assigned to PITS is fixed.The balance of the overhead is variable.Selling expenses consist entirely of commissions paid as a percentage of sales.Direct labor is completely variable.Administrative expenses are fixed and cannot be traced to the products but have been arbitrarily allocated to the products. Required: Prepare a segmented income statement, in total and for the two products.Use the contribution approach.