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

Romasanta Corporation manufactures a single product.The following data pertain to the company's operations over the last two years: What was the absorption costing net operating income this year?

Hardee Inc. , which produces a single product, has provided the following data for its most recent month of operations: There were no beginning or ending inventories. The unit product cost under absorption costing was:

Aaker 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 absorption costing?

Under absorption costing, fixed manufacturing overhead cost is not included in product cost.

Harris Corporation produces a single product.Last year, Harris manufactured 17, 000 units and sold 13, 000 units.Production costs for the year were as follows: Sales were $780, 000 for the year, variable selling and administrative expenses were $88, 400, and fixed selling and administrative expenses were $170, 000.There was no beginning inventory.Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at:

Aaker 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?

Chown Corporation, which has only one product, has provided the following data concerning its most recent month of operations: The total contribution margin for the month under variable costing is:

During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8, 000 units of its only product: The company also incurred the following costs in selling 7, 500 units of product during its first year: Assume that direct labor is a variable cost. Under absorption costing, what is the total cost that would be assigned to Carlos' finished goods inventory at the end of the first year of operations?

Farron 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?

Under absorption costing, fixed manufacturing overhead costs:

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

When using data from a segmented income statement, the dollar sales for a segment to break even is equal to:

Hogans Corporation has two divisions: Delta and Echo.Data from the most recent month appear below: The company's common fixed expenses total $64, 090.The break-even in sales dollars for Echo Division is closest to:

Elliot 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 absorption costing?

The Los Angeles Division of Awercamp Manufacturing produces and markets two product lines: Racquets and Gloves.The following data were gathered on activities last month: Required: Prepare a segmented income statement for last month.

Johnston Corporation manufactures a single product that it sells for $30 per unit.The company has the following cost structure: Last year there was no beginning inventory.During the year, 20, 000 units were produced and 17, 000 units were sold. The company's net operating income for the year under variable costing is:

Under absorption costing, it is possible to defer a portion of the fixed manufacturing overhead costs of the current period to future periods through the inventory account.

Kosco Corporation produces a single product.The company's absorption costing income statement for March follows: During March, the company's variable production costs were $8 per unit and its fixed manufacturing overhead totaled $5, 000. Net operating income under variable costing for March would be:

Martz Corporation manufactures a single product.The following data pertain to the company's operations over the last two years: Required: a.Determine the absorption costing net operating income for last year.Show your work! b.Determine the absorption costing net operating income for this year.Show your work!

Qabar 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.Prepare a contribution format income statement for the month using variable costing. c.Without preparing an income statement, determine the absorption costing net operating income for the month.(Hint: Use the reconciliation method. )