Exam 7: Variable Costing and Segment Reporting: Tools for Management

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:

Brummitt Corporation has two divisions: the BAJ Division and the CBB Division.The corporation's net operating income is $10,700.The BAJ Division's divisional segment margin is $76,100 and the CBB Division's divisional segment margin is $42,300.What is the amount of the common fixed expense not traceable to the individual divisions?

Italia Espresso Machina Inc.produces a single product.Data concerning the company's operations last year appear below: Required: a.Compute the unit product cost under both absorption and variable costing. b.Prepare an income statement for the year using absorption costing. c.Prepare a contribution format income statement for the year using variable costing. d.Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.

Rollison Corporation has two divisions: Retail Division and Wholesale Division.The following data are for the most recent operating period: The common fixed expenses of the company are $76,300. The Wholesale Division's break-even sales in dollars is closest to:

Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period: The company's overall break-even sales is closest to:

Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period: The Gold Division's break-even sales is closest to:

Sharron 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 variable costing unit product cost was:

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

Aaker 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:

Keefe Corporation has two divisions: Western Division and Eastern Division.The following report is for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. What is the company's overall net operating income if it operates at the break-even points for its two divisions?

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. 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 absorption costing,product costs include:

George Corporation has no beginning inventory and manufactures a single product.If the number of units produced exceeds the number of units sold,then net operating income under the absorption method for the year will:

Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period: The Blue Division's break-even sales is closest to:

The following data were provided by Rider,Inc,which produces a single product: Under variable costing,the unit product cost is:

O'Neill,Incorporated's segmented income statement for the most recent month is given below. For each of the following questions,refer back to the above original data. The marketing department believes that a promotional campaign at Store A costing $6,000 will increase sales by $15,000.If its plan is adopted,overall company net operating income should:

Keefe Corporation has two divisions: Western Division and Eastern Division.The following report is for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The Eastern Division's break-even sales is closest to:

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?

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

Cutterski Corporation manufactures a propeller.Shown below is Cutterski's cost structure: In its first year of operations,Cutterski produced 60,000 propellers but only sold 54,000. What would Cutterski report as its cost of goods sold under absorption costing?