Exam 17: Super-Variable Costing

(Appendix 5A)Wienecke Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 44, 000 units and sold 41, 000 units.The company's only product is sold for $239 per unit. The net operating income for the year under super-variable costing is:

(Appendix 5A)Capello Corporation manufactures and sells one product.In the company's first year of operations, the variable cost consisted solely of direct materials of $93 per unit.The annual fixed costs were $675, 000 of direct labor cost, $1, 701, 000 of fixed manufacturing overhead expense, and $780, 000 of fixed selling and administrative expense.The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 27, 000 units and sold 20, 000 units.The company's only product is sold for $258 per unit. Required: a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year. b.Assume that the company uses an absorption costing system that assigns $25 of direct labor cost and $63 of fixed manufacturing overhead to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.

(Appendix 5A)Phoeuk Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 41, 000 units and sold 40, 000 units.The company's only product is sold for $231 per unit. The net operating income for the year under super-variable costing is:

(Appendix 5A)Griffy Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 30, 000 units and sold 23, 000 units.The company's only product is sold for $239 per unit. Required: a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year. b.Assume that the company uses an absorption costing system that assigns $14 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year. c.Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes.

(Appendix 5A)Albanese Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 36, 000 units and sold 29, 000 units.The company's only product is sold for $236 per unit. The company is considering using either super-variable costing or an absorption costing system that assigns $16 of direct labor cost and $72 of fixed manufacturing overhead to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

(Appendix 5A)Phoeuk Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 41, 000 units and sold 40, 000 units.The company's only product is sold for $231 per unit. Assume that the company uses a variable costing system that assigns $22 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:

(Appendix 5A)Schaadt Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 23, 000 units and sold 16, 000 units.The company's only product is sold for $243 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $22 of direct labor cost to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

(Appendix 5A)Slezak Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 35, 000 units and sold 31, 000 units.The company's only product is sold for $264 per unit. Required: a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year. b.Assume that the company uses an absorption costing system that assigns $28 of direct labor cost and $68 of fixed manufacturing overhead to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.

(Appendix 5A)Mendoza Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 47, 000 units and sold 45, 000 units.The company's only product is sold for $275 per unit. Required: a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year. b.Assume that the company uses a variable costing system that assigns $24 of direct labor cost to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year. c.Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes.