Exam 9: Inventory Costing and Capacity Analysis

Venus Corporation incurred fixed manufacturing costs of $6,300 during 2017.Other information for 2017 includes: The budgeted denominator level is 1,600 units. Units produced total 770 units. Units sold total 600 units. Beginning inventory was zero. The company uses variable costing and the fixed manufacturing cost rate is based on the budgeted denominator level.Manufacturing variances are closed to cost of goods sold. Fixed manufacturing costs expensed on the income statement (excluding adjustments for variances)total ________.

Product-sustaining costs in activity-based costing are similar to ________.

Which of the following is a reason for companies to use absorption costing for internal accounting?

Which of the following statements is true of absorption costing?

Which of the following is true of absorption costing?

Swansea Finishing produces and sells a decorative pillow for $100.00 per unit.In the first month of operation,2,000 units were produced and 1,800 units were sold.Actual fixed costs are the same as the amount budgeted for the month.Other information for the month includes: Variable manufacturing costs \ 23.00 per unit Variable marketing costs \ 5.00 per unit Fixed manufacturing costs \ 13 per unit Administrative expenses, all fixed \ 19.50 per unit Ending inventories: Direct materials -0- WIP -0- Finished goods 200 units What is cost of goods sold using variable costing?

Freetown Corporation incurred fixed manufacturing costs of $26,000 during 2017.Other information for 2017 includes: The budgeted denominator level is 2,600 units. Units produced total 1,800 units. Units sold total 1,200 units. Beginning inventory was zero. The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level.Manufacturing variances are closed to cost of goods sold. The production-volume variance is ________.(Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar. )