Question 1

The total gross margin for the month under the absorption costing approach is:

Accepted Answer

A) $19,500 
B) $51,000 
C) $74,000 
D) $55,500 
A) $19,500 
B) $51,000 
C) $74,000 
D) $55,500

Question 2

The unit product cost under absorption costing was:

Accepted Answer

A) $5.43 
B) $3.81 
C) $4.71 
D) $4.12 
A) $5.43 
B) $3.81 
C) $4.71 
D) $4.12

Question 3

If sales for Division F increase $40,000 with a $10,000 increase in the Division's traceable fixed costs, the overall company net operating income should:

Accepted Answer

A) increase by $30,000 
B) increase by $6,000 
C) increase by $2,889 
D) decrease by $4,000 
A) increase by $30,000 
B) increase by $6,000 
C) increase by $2,889 
D) decrease by $4,000

Question 4

The unit product cost under variable costing is:

Accepted Answer

A) $182 
B) $92 
C) $87 
D) $94 
A) $182 
B) $92 
C) $87 
D) $94

Question 5

A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:

Accepted Answer

A) $270,000 
B) $119,000 
C) $207,000 
D) $192,000 
A) $270,000 
B) $119,000 
C) $207,000 
D) $192,000

Question 6

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

Accepted Answer

A) $125,600 
B) $108,800 
C) $176,800 
D) $68,000 
A) $125,600 
B) $108,800 
C) $176,800 
D) $68,000

Question 7

The ARB Company has two divisions: Electronics and DVD/Video Sales. Electronics has traceable fixed expenses of $146,280 and the DBD/Video Sales has traceable fixed expenses of $81,765. If ARB Company has a total of $322,490 in fixed expenses, what are its common fixed expenses?

Accepted Answer

A) $94,445 
B) $322,490 
C) $228,045 
D) $47,223 
A) $94,445 
B) $322,490 
C) $228,045 
D) $47,223

Question 8

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

Accepted Answer

A) $412,000 
B) $676,000 
C) -$148,000 
D) $132,000 
A) $412,000 
B) $676,000 
C) -$148,000 
D) $132,000

Question 9

Krasnow Inc., which produces a single product, has provided the following data for its most recent month of operation:   The company had no beginning or ending inventories.
Required:
Compute the unit product cost under absorption costing. Show your work!

Accepted Answer

The answer of Krasnow Inc., which produces a single product,...

Question 10

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

Accepted Answer

a. Absorpt

Question 11

Selling and administrative expenses are considered to be:

Accepted Answer

A) a product cost under variable costing. 
B) a product cost under absorption costing. 
C) part of fixed manufacturing overhead under variable costing. 
D) a period cost under variable costing. 
A) a product cost under variable costing. 
B) a product cost under absorption costing. 
C) part of fixed manufacturing overhead under variable costing. 
D) a period cost under variable costing.

Question 12

The contribution margin in dollars for Product B for June was:

Accepted Answer

A) $20,000 
B) $111,000 
C) $120,000 
D) $200,000 
A) $20,000 
B) $111,000 
C) $120,000 
D) $200,000

Question 13

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

Accepted Answer

A) $(56,000) 
B) $89,000 
C) $343,000 
D) $234,000 
A) $(56,000) 
B) $89,000 
C) $343,000 
D) $234,000

Question 14

Under variable costing, fixed manufacturing overhead cost is treated as a product cost.

Accepted Answer

A) True 
 B)False

Question 15

Cassin Corporation manufactures a variety of products. Last year, the company's variable costing net operating income was $86,300 and ending inventory decreased by 1,700 units. Fixed manufacturing overhead cost per unit was $8.
Required:
Determine the absorption costing net operating income for last year. Show your work!

Accepted Answer

The answer of Cassin Corporation manufactures a variety of products....

Question 16

Phillipson Corporation has two divisions: the IEB Division and the PIH Division. The corporation's net operating income is $83,900. The IEB Division's divisional segment margin is $149,700 and the PIH Division's divisional segment margin is $60,100. What is the amount of the common fixed expense not traceable to the individual divisions?

Accepted Answer

A) $233,600 
B) $209,800 
C) $144,000 
D) $125,900 
A) $233,600 
B) $209,800 
C) $144,000 
D) $125,900

Question 17

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

Accepted Answer

A) $15,200 
B) $4,000 
C) $(9,200) 
D) $19,200 
A) $15,200 
B) $4,000 
C) $(9,200) 
D) $19,200

Question 18

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:   The total contribution margin for the month under variable costing is:

Accepted Answer

A) $183,600 
B) $90,000 
C) $70,400 
D) $169,200 
A) $183,600 
B) $90,000 
C) $70,400 
D) $169,200

Question 19

The unit product cost under absorption costing does not include fixed manufacturing overhead cost.

Accepted Answer

A) True 
 B)False

Question 20

Last year, Holroyd Corporation's variable costing net operating income was $95,000. The fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $29,000.
Required:
Determine the absorption costing net operating income last year. Show your work!

Accepted Answer

The answer of Last year, Holroyd Corporation's variable costing net...

The total gross margin for the month under the absorption costing approach is:

The unit product cost under absorption costing was:

If sales for Division F increase $40,000 with a $10,000 increase in the Division's traceable fixed costs, the overall company net operating income should:

The unit product cost under variable costing is:

A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:

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

The ARB Company has two divisions: Electronics and DVD/Video Sales. Electronics has traceable fixed expenses of $146,280 and the DBD/Video Sales has traceable fixed expenses of $81,765. If ARB Company has a total of $322,490 in fixed expenses, what are its common fixed expenses?

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

Krasnow Inc., which produces a single product, has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. Required: Compute the unit product cost under absorption costing. Show your work!

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

Selling and administrative expenses are considered to be:

The contribution margin in dollars for Product B for June was:

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

Under variable costing, fixed manufacturing overhead cost is treated as a product cost.

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

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: The total contribution margin for the month under variable costing is:

The unit product cost under absorption costing does not include fixed manufacturing overhead cost.

Last year, Holroyd Corporation's variable costing net operating income was $95,000. The fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $29,000. Required: Determine the absorption costing net operating income last year. Show your work!

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters

Exam 4: Variable Costing and Segment Reporting: Tools for Management

The total gross margin for the month under the absorption costing approach is:

The unit product cost under absorption costing was:

If sales for Division F increase $40,000 with a $10,000 increase in the Division's traceable fixed costs, the overall company net operating income should:

The unit product cost under variable costing is:

A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:

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

The ARB Company has two divisions: Electronics and DVD/Video Sales. Electronics has traceable fixed expenses of $146,280 and the DBD/Video Sales has traceable fixed expenses of $81,765. If ARB Company has a total of $322,490 in fixed expenses, what are its common fixed expenses?

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

Krasnow Inc., which produces a single product, has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. Required: Compute the unit product cost under absorption costing. Show your work!

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

Selling and administrative expenses are considered to be:

The contribution margin in dollars for Product B for June was:

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

Under variable costing, fixed manufacturing overhead cost is treated as a product cost.

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

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: The total contribution margin for the month under variable costing is:

The unit product cost under absorption costing does not include fixed manufacturing overhead cost.

Last year, Holroyd Corporation's variable costing net operating income was $95,000. The fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $29,000. Required: Determine the absorption costing net operating income last year. Show your work!

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters