Question 1

An allocated portion of fixed manufacturing overhead is included in product costs under which of the following?

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 2

What was the operating income for the month under variable costing?

Accepted Answer

A)  $2,100. 
B)  $17,800. 
C)  $18,500. 
D)  $25,900. 
A)  $2,100. 
B)  $17,800. 
C)  $18,500. 
D)  $25,900.

Question 3

The Dean Company produces and sells a single product: a laser printer.The following data refer to the year just completed:   
Assume that direct labour is a variable cost.
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 Dean Company produces and sells a...

Question 4

Under variable costing,what was the unit product cost?

Accepted Answer

A)  $43. 
B)  $58. 
C)  $72. 
D)  $91. 
A)  $43. 
B)  $58. 
C)  $72. 
D)  $91.

Question 5

What is the amount of fixed overhead deferred under absorption costing?

Accepted Answer

A)  $0 
B)  $3,200 
C)  $4,000 
D)  $67,200 
A)  $0 
B)  $3,200 
C)  $4,000 
D)  $67,200

Question 6

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

Accepted Answer

A)  ($19,600). 
B)  $8,400. 
C)  $9,600. 
D)  $18,000. 
A)  ($19,600). 
B)  $8,400. 
C)  $9,600. 
D)  $18,000.

Question 7

Which of the following statements is true for a firm that uses variable costing?

Accepted Answer

A)  The unit product cost changes as a result of changes in the number of units manufactured. 
B)  Both variable selling costs and variable production costs are included in the unit product cost. 
C)  Operating income moves in the same direction as sales. 
D)  Operating income is greatest in periods when production is highest. 
A)  The unit product cost changes as a result of changes in the number of units manufactured. 
B)  Both variable selling costs and variable production costs are included in the unit product cost. 
C)  Operating income moves in the same direction as sales. 
D)  Operating income is greatest in periods when production is highest.

Question 8

What was the total period cost for the month under the absorption costing approach?

Accepted Answer

A)  $7,200. 
B)  $28,500. 
C)  $42,000. 
D)  $49,200. 
A)  $7,200. 
B)  $28,500. 
C)  $42,000. 
D)  $49,200.

Question 9

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

Accepted Answer

A)  $76. 
B)  $84. 
C)  $98. 
D)  $106. 
A)  $76. 
B)  $84. 
C)  $98. 
D)  $106.

Question 10

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

Accepted Answer

A)  $78. 
B)  $87. 
C)  $115. 
D)  $124. 
A)  $78. 
B)  $87. 
C)  $115. 
D)  $124.

Question 11

Under the absorption costing method,what was the dollar value of the company's inventory on August 31?

Accepted Answer

A)  $27,000. 
B)  $36,000. 
C)  $42,000. 
D)  $47,000.FOH = 105,000/35,000 = $3/unit.EI = $27,000/9 = 3,000 units * (9 + 3)= $36,000. 
A)  $27,000. 
B)  $36,000. 
C)  $42,000. 
D)  $47,000.FOH = 105,000/35,000 = $3/unit.EI = $27,000/9 = 3,000 units * (9 + 3)= $36,000.

Question 12

What was the carrying value on the balance sheet of the ending finished goods inventory under variable costing?

Accepted Answer

A)  $10,000. 
B)  $12,000. 
C)  $16,000. 
D)  $19,000. 
A)  $10,000. 
B)  $12,000. 
C)  $16,000. 
D)  $19,000.

Question 13

Operating income reported under absorption costing will generally exceed operating income reported under variable costing for a given period in which of the following cases?

Accepted Answer

A)  If production equals sales for that period. 
B)  If production exceeds sales for that period. 
C)  If sales exceed production for that period. 
D)  If the variable manufacturing overhead exceeds the fixed manufacturing overheaD. 
A)  If production equals sales for that period. 
B)  If production exceeds sales for that period. 
C)  If sales exceed production for that period. 
D)  If the variable manufacturing overhead exceeds the fixed manufacturing overheaD.

Question 14

Under variable costing,it may be possible to report a positive operating income even if the company sells less than the break-even volume of sales.

Accepted Answer

A) True 
 B)False

Question 15

Under variable costing,the unit product cost contains some fixed manufacturing overhead cost.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  $407,500. 
B)  $417,500. 
C)  $421,250. 
D)  $431,250. 
A)  $407,500. 
B)  $417,500. 
C)  $421,250. 
D)  $431,250.

Question 17

Under absorption costing,what was the cost of goods sold for the year?

Accepted Answer

A)  $206,400. 
B)  $278,400. 
C)  $345,600. 
D)  $360,000. 
A)  $206,400. 
B)  $278,400. 
C)  $345,600. 
D)  $360,000.

Question 18

Indiana Corporation produces a single product that it sells for $9 per unit.During the first year of operations,100,000 units were produced and 90,000 units were sold.Manufacturing costs and selling and administrative expenses for the year were as follows:  
What was Indiana Corporation's operating income for the year using variable costing?

Accepted Answer

A)  $181,000. 
B)  $271,000. 
C)  $281,000. 
D)  $371,000. 
A)  $181,000. 
B)  $271,000. 
C)  $281,000. 
D)  $371,000.

Question 19

What was the dollar value of the company's inventory on May 31 under the absorption costing method?

Accepted Answer

A)  $60,000. 
B)  $75,000. 
C)  $90,000. 
D)  $120,000.Units in ending inventory = $75,000/$5 = 15,000.EI = 15,000 * (3 + 5)= $120,000. 
A)  $60,000. 
B)  $75,000. 
C)  $90,000. 
D)  $120,000.Units in ending inventory = $75,000/$5 = 15,000.EI = 15,000 * (3 + 5)= $120,000.

Question 20

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

Accepted Answer

A)  $24,000. 
B)  $60,000. 
C)  $170,100. 
D)  $230,100. 
A)  $24,000. 
B)  $60,000. 
C)  $170,100. 
D)  $230,100.

An allocated portion of fixed manufacturing overhead is included in product costs under which of the following?

What was the operating income for the month under variable costing?

Under variable costing,what was the unit product cost?

What is the amount of fixed overhead deferred under absorption costing?

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

Which of the following statements is true for a firm that uses variable costing?

What was the total period cost for the month under the absorption costing approach?

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

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

Under the absorption costing method,what was the dollar value of the company's inventory on August 31?

What was the carrying value on the balance sheet of the ending finished goods inventory under variable costing?

Operating income reported under absorption costing will generally exceed operating income reported under variable costing for a given period in which of the following cases?

Under variable costing,it may be possible to report a positive operating income even if the company sells less than the break-even volume of sales.

Under variable costing,the unit product cost contains some fixed manufacturing overhead cost.

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

Under absorption costing,what was the cost of goods sold for the year?

What was the dollar value of the company's inventory on May 31 under the absorption costing method?

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

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

Exam 8: Variable Costing: a Tool for Management

An allocated portion of fixed manufacturing overhead is included in product costs under which of the following?

What was the operating income for the month under variable costing?

Under variable costing,what was the unit product cost?

What is the amount of fixed overhead deferred under absorption costing?

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

Which of the following statements is true for a firm that uses variable costing?

What was the total period cost for the month under the absorption costing approach?

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

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

Under the absorption costing method,what was the dollar value of the company's inventory on August 31?

What was the carrying value on the balance sheet of the ending finished goods inventory under variable costing?

Operating income reported under absorption costing will generally exceed operating income reported under variable costing for a given period in which of the following cases?

Under variable costing,it may be possible to report a positive operating income even if the company sells less than the break-even volume of sales.

Under variable costing,the unit product cost contains some fixed manufacturing overhead cost.

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

Under absorption costing,what was the cost of goods sold for the year?

What was the dollar value of the company's inventory on May 31 under the absorption costing method?

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

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