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

A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

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!

Chang Corporation has two divisions, T and W.The company's overall contribution margin ratio is 40%, with sales in the two divisions totaling $900,000.If variable expenses are $200,000 in Division T and if Division W's contribution margin ratio is 20%, the sales in Division W must be:

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:

The company's net operating income under variable costing would be:

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

The contribution margin of the West business segment is:

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

Borunda Corporation has provided the following data for its two most recent years of operation: Required: a.Assume the company uses absorption costing.Prepare an income statement for each year. b.Assume the company uses variable costing.Prepare an income statement for each year. c.Prepare a report in good form reconciling the variable costing and absorption costing net incomes.

The net operating income (loss)under absorption costing closest to:

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

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

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

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

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 variable costing?

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

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

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

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

The following data pertain to last year's operations at Clarkson, Incorporated, a company that produces a single product: What was the absorption costing net operating income last year?