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

Masley Corporation has provided the following data for its two most recent years of operation: In Year 1, 10,000 units were produced and in Year 2, 7,000 units were produced. Required: a.Assume the company uses absorption costing.Compute the unit product cost in each year. B.Assume the company uses variable costing.Compute the unit product cost in each year.

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

Under absorption costing, for November the company would report a:

The costing method that treats all fixed costs as period costs is:

What is the company's overall net operating income if it operates at the break-even points for its two divisions?

The value of the company's inventory on November 30 under absorption costing would be:

Mckissic Corporation has two divisions: Domestic and Foreign.Data from the most recent month appear below: The break-even in sales dollars for the company as a whole is closest to:

Rhea 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:

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

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

Worrel Corporation manufactures a single product.The following data pertain to the company's operations over the last two years: Required: a.Determine the absorption costing net operating income last year.Show your work! b.Determine the absorption costing net operating income this year.Show your work!

The unit product cost under absorption costing in Year 1 is closest to:

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

The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:

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 variable costing unit product cost for the month?

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

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

The net operating income (loss)under variable costing in Year 2 is closest to:

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