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

A national retail company has segmented its income statement by sales territories.If each sales territory statement is further segmented by individual stores, which of the following will most likely occur?

Waltz Corporation has two divisions: Xi and Sigma.Data from the most recent month appear below: The company's common fixed expenses total $65, 100.The break-even in sales dollars for Sigma Division is closest to:

Clemmens Corporation has two major business segments: Consumer and Commercial.Data for the segments and for the company for August appear below: In addition, common fixed expenses totaled $265, 000 and were allocated as follows: $135, 000 to the Consumer business segment and $130, 000 to the Commercial business segment. The contribution margin of the Commercial business segment is:

Nantua Corporation has two divisions, Southern and Northern.The following information was taken from last year's income statement segmented by division: Net operating income last year for Nantua Corporation was $400, 000. In last year's income statement segmented by division, what were Nantua's total common fixed expenses?

Mahugh Corporation, which has only one product, has provided the following data concerning its most recent month of operations: 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 a contribution format income statement for the month using variable costing. d.Prepare an income statement for the month using absorption costing. e.Reconcile the variable costing and absorption costing net operating incomes for the month.

Bateman Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the unit product cost for the month under variable costing?

Meyer Corporation has two sales areas: North and South.During April, the contribution margin in the North was $90, 000, or 30% of sales.The segment margin in the South was $25, 000, or 10% of sales.Traceable fixed expenses were $30, 000 in the North and $15, 000 in the South.Meyer Corporation reported a total net operating income of $52, 000. The total sales for Meyer Corporation were:

When the number of units in work in process and finished goods inventories decrease, absorption costing net operating income will typically be greater than variable costing net operating income.

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

Iancu Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the net operating income for the month under variable costing?

Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the unit product cost for the month under variable costing?

Meyer Corporation has two sales areas: North and South.During April, the contribution margin in the North was $90, 000, or 30% of sales.The segment margin in the South was $25, 000, or 10% of sales.Traceable fixed expenses were $30, 000 in the North and $15, 000 in the South.Meyer Corporation reported a total net operating income of $52, 000. The variable costs for the South area were:

Jarvix Corporation, 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. What is the net operating income for the month under variable costing?

Data for March concerning Mauger Corporation's two major business segments-Fibers and Feedstocks-appear below: Common fixed expenses totaled $461, 000 and were allocated as follows: $249, 000 to the Fibers business segment and $212, 000 to the Feedstocks business segment. Required: Prepare a segmented income statement in the contribution format for the company.Omit percentages;show only dollar amounts.

Gunderman Corporation has two divisions: the Alpha Division and the Charlie Division.The Alpha Division has sales of $230, 000, variable expenses of $131, 100, and traceable fixed expenses of $63, 300.The Charlie Division has sales of $540, 000, variable expenses of $307, 800, and traceable fixed expenses of $120, 700.The total amount of common fixed expenses not traceable to the individual divisions is $119, 200.What is the company's net operating income?

Crossbow Corp.produces a single product.Data concerning June's operations follow: Under absorption costing, ending inventory on the balance sheet would be valued at:

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the absorption costing unit product cost for the month?

Meyer Corporation has two sales areas: North and South.During April, the contribution margin in the North was $90, 000, or 30% of sales.The segment margin in the South was $25, 000, or 10% of sales.Traceable fixed expenses were $30, 000 in the North and $15, 000 in the South.Meyer Corporation reported a total net operating income of $52, 000. The total fixed expenses for Meyer Corporation were:

Pevy Corporation has two divisions: Southern Division and Northern Division.The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The Northern Division's break-even sales is closest to:

Quinnett Corporation has two divisions: the Export Products Division and the Business Products Division.The Export Products Division's divisional segment margin is $34, 300 and the Business Products Division's divisional segment margin is $86, 700.The total amount of common fixed expenses not traceable to the individual divisions is $95, 600.What is the company's net operating income?