Exam 5: Variable Costing and Segment Reporting: Tools for Management

Data for June for Ozaki Corporation and its two major business segments, North and South, appear below: In addition, common fixed expenses totaled $145,000 and were allocated as follows: $73,000 to the North business segment and $72,000 to the South 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:

The ARB Company has two divisions: Electronics and DVD/Video Sales.Electronics has traceable fixed expenses of $146,280 and the DVD/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?

O'Keefe Company,which has only one product,has provided the following data concerning its most recent month of operations: Required: a.Prepare a contribution format income statement for the month using variable costing. b.Prepare an income statement for the month using absorption costing.

The Gasson Company sells three products, Product A, Product B and Product C, and had sales of $1,000,000 during the month of June. The company's overall contribution margin ratio was 37% and fixed expenses totaled $350,000. Sales were: Product A, $500,000; Product B, $300,000; and Product C, $200,000. Traceable fixed costs were: Product A, $120,000; Product B, $100,000; and Product C, $60,000. The variable expenses of Product A were $300,000 and the variable expenses of Product B were $180,000. -The common fixed expense for Gasson Company for the month of June was:

During the last year, Snyder Co. produced 10,000 units of its only product. Costs incurred by Snyder during the year were as follows: -The unit product cost under absorption costing was:

Favini Company, 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?

Hansen Company produces a single product.During the last year,Hansen had net operating income under absorption costing that was $5,500 lower than its income under variable costing.The company sold 9,000 units during the year,and its variable costs were $10 per unit,of which $6 was variable selling expense.If fixed production cost is $5 per unit under absorption costing every year,then how many units did the company produce during the year?

Whitney, Inc., produces a single product. The following data pertain to one month's operations: -The carrying value on the balance sheet of the ending finished goods inventory under variable costing would be:

Enz Corporation manufactures a variety of products. The following data pertain to the company's operations over the last two years: -What was the absorption costing net operating income this year?

Gordon Company produces a single product that sells for $10 per unit. Last year there were no beginning inventories, 100,000 units were produced, and 80,000 units were sold. The company has the following cost structure: -The carrying value on the balance sheet of the ending finished goods inventory under absorption costing would be:

Which of the following are considered to be product costs under variable costing? I.Variable manufacturing overhead. II)Fixed manufacturing overhead. III)Selling and administrative expenses.

Deboer Company, which has only one product, has provided the following data concerning its most recent month of operations: -What is the total period cost for the month under the variable costing approach?

Green Enterprises produces a single product. The following data were provided by the company for the most recent period: -Under variable costing,the unit product cost is:

Galino Company, which has only one product, has provided the following data concerning its most recent month of operations: -What is the total period cost for the month under the absorption costing approach?

Abe Company, 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:

Leigh Company,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. 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.

DeAnne Company produces a single product. The company's variable costing income statement for August appears below: The company produced 35,000 units in August and the beginning inventory consisted of 8,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months. -Under absorption costing,for the month ended August 31,the company would report a:

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 variable costing?

The contribution margin tells us what happens to profits as volume changes if a segment's capacity and fixed costs change as well.

Abe Company, 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?