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

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

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

Generally speaking, net operating income under variable and absorption costing will:

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:

Fausnaught Corporation has two major business segments--Retail and Wholesale.In October, the Retail business segment had sales revenues of $730,000, variable expenses of $409,000, and traceable fixed expenses of $117,000.During the same month, the Wholesale business segment had sales revenues of $400,000, variable expenses of $220,000, and traceable fixed expenses of $48,000.Common fixed expenses totaled $218,000 and were allocated as follows: $122,000 to the Retail business segment and $96,000 to the Wholesale business segment. Required: Prepare a segmented income statement in the contribution format for the company.Omit percentages; show only dollar amounts.

Which of the following statements is true for Year 1?

The unit product cost under variable costing is closest to:

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

Silver Corporation produces a single product.Last year, the company's variable production costs totaled $7,500 and its fixed manufacturing overhead costs totaled $4,500.The company produced 3,000 units during the year and sold 2,400 units.There were no units in the beginning inventory.Which of the following statements is true?

The unit product cost under variable 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: The total contribution margin for the month under variable costing is:

The total contribution margin for the month under variable costing is:

Which of the following statements is true for Year 1?

If a cost must be arbitrarily allocated in order to be assigned to a particular segment, then that cost should be considered a common cost.

A company produces a single product.Variable production costs are $21 per unit and variable selling and administrative expenses are $4 per unit.Fixed manufacturing overhead totals $30.000 and fixed selling and administration expenses total $36.000.Assuming a beginning inventory of zero, production of 6,000 units and sales of 5,600 units, the dollar value of the ending inventory under variable costing would be:

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.)

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

Foggs 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:

Bellue Inc.manufactures a single product.Variable costing net operating income was $96,300 last year and its inventory decreased by 2,600 units.Fixed manufacturing overhead cost was $1 per unit for both units in beginning and in ending inventory.What was the absorption costing net operating income last year?

Which of the following costs at a manufacturing company would be treated as a product cost under variable costing?