Question 1

Under absorption costing,what was the unit product cost? Do not round intermediate calculations.

Accepted Answer

A)  $8.00. 
B)  $10.75. 
C)  $13.00 
D)  $17.75. 
A)  $8.00. 
B)  $10.75. 
C)  $13.00 
D)  $17.75.

Question 2

For the most recent year,Atlantic Company's operating income computed using the absorption costing method was $7,400,and its operating income computed using the variable costing method was $10,100.The company's unit product cost was $17 under variable costing and $22 under absorption costing.Atlantic produces the same number of units each year.What must have been the beginning inventory if the ending inventory consisted of 1,460 units?

Accepted Answer

A)  920 units. 
B)  1,460 units. 
C)  2,000 units. 
D)  12,700 units. 
A)  920 units. 
B)  1,460 units. 
C)  2,000 units. 
D)  12,700 units.

Question 3

Pabbatti Company,which has only one product,has provided the following data concerning its most recent month of operations:   
The company produces the same number of units every month,although the sales in units vary from month to month.The company's variable costs per unit and total fixed costs have been constant from month to month.
Required:
a)What is the unit product cost for the month under variable costing?
b)Prepare an income statement for the month using the contribution format and the variable costing method.
c)Without preparing an income statement,determine the absorption costing operating income for the month.(Hint: Use the reconciliation method. )

Accepted Answer

The answer of Pabbatti Company,which has only one product,has provided...

Question 4

The total fixed manufacturing overhead costs of Cay Company are $100,000,and the total variable selling costs are $80,000.Under variable costing,how should these costs be classified?

Accepted Answer

A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D 
A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D

Question 5

The unit product cost under absorption costing contains no element of fixed manufacturing overhead cost.

Accepted Answer

A) True 
 B)False

Question 6

Lee Company,which has only one product,has provided the following data concerning its most recent month of operations:   
The company produces the same number of units every month,although the sales in units vary from month to month.The company's variable costs per unit and total fixed costs have been constant from month to month.
Required:
a)What is the unit product cost for the month under variable costing?
b)What is the unit product cost for the month under absorption costing?
c)Prepare an income statement for the month using the contribution format and the variable costing method.
d)Prepare an income statement for the month using the absorption costing method.
e)Reconcile the variable costing and absorption costing operating incomes for the month.

Accepted Answer

The answer of Lee Company,which has only one product,has provided...

Question 7

What was the unit product cost under absorption costing?

Accepted Answer

A)  $15. 
B)  $18. 
C)  $20. 
D)  $25. 
A)  $15. 
B)  $18. 
C)  $20. 
D)  $25.

Question 8

What was the company's operating income for the year under variable costing?

Accepted Answer

A)  $57,000. 
B)  $60,000. 
C)  $69,000. 
D)  $81,000. 
A)  $57,000. 
B)  $60,000. 
C)  $69,000. 
D)  $81,000.

Question 9

What was the operating income under variable costing?

Accepted Answer

A)  $114,000. 
B)  $210,000. 
C)  $234,000. 
D)  $330,000. 
A)  $114,000. 
B)  $210,000. 
C)  $234,000. 
D)  $330,000.

Question 10

Data concerning Sonderegger Company's operations last year appear below:   
Required:
a)Prepare an income statement for the year using absorption costing.
b)Prepare an income statement for the year using variable costing.
c)Prepare a report reconciling the difference in operating income between absorption and variable costing for the year.

Accepted Answer

@#IMG-DLM& 
* $4 = @200 + $1.00 + $1.00

Question 11

The following information pertains to Malcolm Corporation for a period:

Accepted Answer

@#IMG-DLM& 
a)Assume the unit standard costs data

Question 12

The EG Company produces and sells one product: a microwave oven.The following data refer to the year just completed:   
Required:
a)Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.
b)Prepare an income statement for the year using absorption costing.
c)Prepare an income statement for the year using variable costing.
d)Reconcile the absorption costing and variable costing operating income figures in b)and c)above.

Accepted Answer

The answer of The EG Company produces and sells one...

Question 13

What is the operating income (loss)for the month under absorption costing?

Accepted Answer

A)  ($14,100). 
B)  $3,900. 
C)  $8,100. 
D)  $12,000. 
A)  ($14,100). 
B)  $3,900. 
C)  $8,100. 
D)  $12,000.

Question 14

What was the total gross margin for the month under the absorption costing approach?

Accepted Answer

A)  $7,800. 
B)  $179,400. 
C)  $196,800. 
D)  $390,000. 
A)  $7,800. 
B)  $179,400. 
C)  $196,800. 
D)  $390,000.

Question 15

Under absorption costing,what was the gross margin?

Accepted Answer

A)  $21,000. 
B)  $66,000. 
C)  $176,000. 
D)  $242,000. 
A)  $21,000. 
B)  $66,000. 
C)  $176,000. 
D)  $242,000.

Question 16

Last year,Ben Company's operating income under absorption costing was $4,400 lower than its operating income under variable costing.The company sold 8,000 units during the year,and its variable costs were $8 per unit,of which $3 was variable selling expense.Fixed manufacturing overhead was $1 per unit in beginning inventory under absorption costing.Ending inventory was zero.How many units did the company produce during the year?

Accepted Answer

A)  3,600 units. 
B)  7,120 units. 
C)  7,450 units. 
D)  12,400 units. 
A)  3,600 units. 
B)  7,120 units. 
C)  7,450 units. 
D)  12,400 units.

Question 17

Sales volume is the only driver of operating income under absorption costing.

Accepted Answer

A) True 
 B)False

Question 18

What is the total gross margin for the month under the absorption costing approach?

Accepted Answer

A)  $12,000. 
B)  $72,000. 
C)  $98,100. 
D)  $198,000. 
A)  $12,000. 
B)  $72,000. 
C)  $98,100. 
D)  $198,000.

Question 19

Absorption costing treats fixed manufacturing overhead as a period cost,rather than as a product cost.

Accepted Answer

A) True 
 B)False

Question 20

What was the unit product cost under variable costing?

Accepted Answer

A)  $15. 
B)  $18. 
C)  $20. 
D)  $22. 
A)  $15. 
B)  $18. 
C)  $20. 
D)  $22.

Under absorption costing,what was the unit product cost? Do not round intermediate calculations.

The total fixed manufacturing overhead costs of Cay Company are $100,000,and the total variable selling costs are $80,000.Under variable costing,how should these costs be classified?

The unit product cost under absorption costing contains no element of fixed manufacturing overhead cost.

What was the unit product cost under absorption costing?

What was the company's operating income for the year under variable costing?

What was the operating income under variable costing?

The following information pertains to Malcolm Corporation for a period:

What is the operating income (loss)for the month under absorption costing?

What was the total gross margin for the month under the absorption costing approach?

Under absorption costing,what was the gross margin?

Sales volume is the only driver of operating income under absorption costing.

What is the total gross margin for the month under the absorption costing approach?

Absorption costing treats fixed manufacturing overhead as a period cost,rather than as a product cost.

What was the unit product cost under variable costing?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

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Exam 8: Variable Costing: a Tool for Management

Under absorption costing,what was the unit product cost? Do not round intermediate calculations.

The total fixed manufacturing overhead costs of Cay Company are $100,000,and the total variable selling costs are $80,000.Under variable costing,how should these costs be classified?

The unit product cost under absorption costing contains no element of fixed manufacturing overhead cost.

What was the unit product cost under absorption costing?

What was the company's operating income for the year under variable costing?

What was the operating income under variable costing?

The following information pertains to Malcolm Corporation for a period:

What is the operating income (loss)for the month under absorption costing?

What was the total gross margin for the month under the absorption costing approach?

Under absorption costing,what was the gross margin?

Sales volume is the only driver of operating income under absorption costing.

What is the total gross margin for the month under the absorption costing approach?

Absorption costing treats fixed manufacturing overhead as a period cost,rather than as a product cost.

What was the unit product cost under variable costing?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

Filters