Question 1

The unit product cost under super-variable costing is:

Accepted Answer

A) $213 per unit 
B) $88 per unit 
C) $174 per unit 
D) $104 per unit 
A) $213 per unit 
B) $88 per unit 
C) $174 per unit 
D) $104 per unit

Question 2

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?

Accepted Answer

A) Super-variable costing net operating income exceeds absorption costing net operating income by $616,000. 
B) Absorption costing net operating income exceeds super-variable costing net operating income by $616,000. 
C) Absorption costing net operating income exceeds super-variable costing net operating income by $504,000. 
D) Super-variable costing net operating income exceeds absorption costing net operating income by $504,000. 
A) Super-variable costing net operating income exceeds absorption costing net operating income by $616,000. 
B) Absorption costing net operating income exceeds super-variable costing net operating income by $616,000. 
C) Absorption costing net operating income exceeds super-variable costing net operating income by $504,000. 
D) Super-variable costing net operating income exceeds absorption costing net operating income by $504,000.

Question 3

The company is considering using either super-variable costing or an absorption costing system that assigns $25 of direct labor cost and $56 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?

Accepted Answer

A) Super-variable costing net operating income exceeds absorption costing net operating income by $486,000. 
B) Absorption costing net operating income exceeds super-variable costing net operating income by $336,000. 
C) Absorption costing net operating income exceeds super-variable costing net operating income by $486,000. 
D) Super-variable costing net operating income exceeds absorption costing net operating income by $336,000. 
A) Super-variable costing net operating income exceeds absorption costing net operating income by $486,000. 
B) Absorption costing net operating income exceeds super-variable costing net operating income by $336,000. 
C) Absorption costing net operating income exceeds super-variable costing net operating income by $486,000. 
D) Super-variable costing net operating income exceeds absorption costing net operating income by $336,000.

Question 4

Assume that the company uses an absorption costing system that assigns $19 of direct labor cost and $55 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:

Accepted Answer

A) $1,321,000 
B) $1,225,000 
C) $1,395,000 
D) $1,340,000 
A) $1,321,000 
B) $1,225,000 
C) $1,395,000 
D) $1,340,000

Question 5

Assume that the company uses a variable costing system that assigns $28 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:

Accepted Answer

A) $179 per unit 
B) $227 per unit 
C) $109 per unit 
D) $81 per unit 
A) $179 per unit 
B) $227 per unit 
C) $109 per unit 
D) $81 per unit

Question 6

Tisch 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 20,000 units and sold 13,000 units. The company's only product is sold for $242 per unit. The net operating income for the year under super-variable costing is:

Accepted Answer

A) $(109,000) 
B) $507,000 
C) $(676,000) 
D) $(11,000) 
A) $(109,000) 
B) $507,000 
C) $(676,000) 
D) $(11,000)

Question 7

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?

Accepted Answer

A) Variable costing net operating income exceeds super-variable costing net operating income by $427,000. 
B) Variable costing net operating income exceeds super-variable costing net operating income by $154,000. 
C) Super-variable costing net operating income exceeds variable costing net operating income by $154,000. 
D) Super-variable costing net operating income exceeds variable costing net operating income by $427,000. 
A) Variable costing net operating income exceeds super-variable costing net operating income by $427,000. 
B) Variable costing net operating income exceeds super-variable costing net operating income by $154,000. 
C) Super-variable costing net operating income exceeds variable costing net operating income by $154,000. 
D) Super-variable costing net operating income exceeds variable costing net operating income by $427,000.

Question 8

Assume that the company uses an absorption costing system that assigns $16 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. The unit product cost under this costing system is:

Accepted Answer

A) $88 per unit 
B) $213 per unit 
C) $174 per unit 
D) $104 per unit 
A) $88 per unit 
B) $213 per unit 
C) $174 per unit 
D) $104 per unit

Question 9

The company is considering using either super-variable costing or an absorption costing system that assigns $28 of direct labor cost and $70 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?

Accepted Answer

A) Super-variable costing net operating income exceeds absorption costing net operating income by $6,000. 
B) Absorption costing net operating income exceeds super-variable costing net operating income by $588,000. 
C) Absorption costing net operating income exceeds super-variable costing net operating income by $6,000. 
D) Super-variable costing net operating income exceeds absorption costing net operating income by $588,000. 
A) Super-variable costing net operating income exceeds absorption costing net operating income by $6,000. 
B) Absorption costing net operating income exceeds super-variable costing net operating income by $588,000. 
C) Absorption costing net operating income exceeds super-variable costing net operating income by $6,000. 
D) Super-variable costing net operating income exceeds absorption costing net operating income by $588,000.

Question 10

Wahler Corporation manufactures and sells one product. In the company's first year of operations, the variable cost consisted solely of direct materials of $85 per unit. The annual fixed costs were $640,000 of direct labor cost, $2,208,000 of fixed manufacturing overhead expense, and $1,140,000 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 32,000 units and sold 30,000 units. The company's only product is sold for $249 per unit. The net operating income for the year under super-variable costing is:

Accepted Answer

A) $1,110,000 
B) $932,000 
C) $972,000 
D) $762,000 
A) $1,110,000 
B) $932,000 
C) $972,000 
D) $762,000

Question 11

Assume that the company uses an absorption costing system that assigns $19 of direct labor cost and $50 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:

Accepted Answer

A) $882,000 
B) $399,000 
C) $(210,000) 
D) $532,000 
A) $882,000 
B) $399,000 
C) $(210,000) 
D) $532,000

Question 12

Assume that the company uses an absorption costing system that assigns $28 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. The unit product cost under this costing system is:

Accepted Answer

A) $81 per unit 
B) $109 per unit 
C) $227 per unit 
D) $179 per unit 
A) $81 per unit 
B) $109 per unit 
C) $227 per unit 
D) $179 per unit

Question 13

The unit product cost under super-variable costing is:

Accepted Answer

A) $88 per unit 
B) $166 per unit 
C) $110 per unit 
D) $209 per unit 
A) $88 per unit 
B) $166 per unit 
C) $110 per unit 
D) $209 per unit

Question 14

Ellert 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 52,000 units and sold 51,000 units. The company's only product is sold for $251 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 $26 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.

Accepted Answer

a. Under super-variable costin

Question 15

Assume that the company uses an absorption costing system that assigns $16 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:

Accepted Answer

A) $1,066,000 
B) $856,000 
C) $544,000 
D) $808,000 
A) $1,066,000 
B) $856,000 
C) $544,000 
D) $808,000

Question 16

The company is considering using either super-variable costing or a variable costing system that assigns $28 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?

Accepted Answer

A) Super-variable costing net operating income exceeds variable costing net operating income by $168,000. 
B) Super-variable costing net operating income exceeds variable costing net operating income by $420,000. 
C) Variable costing net operating income exceeds super-variable costing net operating income by $420,000. 
D) Variable costing net operating income exceeds super-variable costing net operating income by $168,000. 
A) Super-variable costing net operating income exceeds variable costing net operating income by $168,000. 
B) Super-variable costing net operating income exceeds variable costing net operating income by $420,000. 
C) Variable costing net operating income exceeds super-variable costing net operating income by $420,000. 
D) Variable costing net operating income exceeds super-variable costing net operating income by $168,000.

Question 17

Grand 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 21,000 units. The company's only product is sold for $254 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 $20 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. Assume that the company uses an absorption costing system that assigns $20 of direct labor cost and $71 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.
d. Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes.
e. Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes.

Accepted Answer

a. Under super-variable costing, the uni

Question 18

Super-variable costing is a costing method that treats direct labor and manufacturing overhead costs as period costs and includes only direct materials cost in unit product costs.

Accepted Answer

A) True 
 B)False

Question 19

All differences between super-variable costing and absorption costing net operating income are explained by the accounting for direct materials costs.

Accepted Answer

A) True 
 B)False

Question 20

The net operating income for the year under super-variable costing is:

Accepted Answer

A) $1,291,000 
B) $1,193,000 
C) $542,000 
D) $1,739,000 
A) $1,291,000 
B) $1,193,000 
C) $542,000 
D) $1,739,000

The unit product cost under super-variable costing is:

The company is considering using either super-variable costing or an absorption costing system that assigns $25 of direct labor cost and $56 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?

Assume that the company uses an absorption costing system that assigns $19 of direct labor cost and $55 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:

Assume that the company uses a variable costing system that assigns $28 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:

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?

Assume that the company uses an absorption costing system that assigns $16 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. The unit product cost under this costing system is:

The company is considering using either super-variable costing or an absorption costing system that assigns $28 of direct labor cost and $70 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?

Assume that the company uses an absorption costing system that assigns $19 of direct labor cost and $50 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:

Assume that the company uses an absorption costing system that assigns $28 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. The unit product cost under this costing system is:

The unit product cost under super-variable costing is:

Assume that the company uses an absorption costing system that assigns $16 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:

The company is considering using either super-variable costing or a variable costing system that assigns $28 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?

Super-variable costing is a costing method that treats direct labor and manufacturing overhead costs as period costs and includes only direct materials cost in unit product costs.

All differences between super-variable costing and absorption costing net operating income are explained by the accounting for direct materials costs.

The net operating income for the year under super-variable costing is:

Managerial Accounting and Cost Concepts

Least-Squares Regression Computations

Cost of Quality

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Process Costing

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

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Exam 12: Super-Variable Costing

The unit product cost under super-variable costing is:

The company is considering using either super-variable costing or an absorption costing system that assigns $25 of direct labor cost and $56 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?

Assume that the company uses an absorption costing system that assigns $19 of direct labor cost and $55 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:

Assume that the company uses a variable costing system that assigns $28 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:

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?

Assume that the company uses an absorption costing system that assigns $16 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. The unit product cost under this costing system is:

The company is considering using either super-variable costing or an absorption costing system that assigns $28 of direct labor cost and $70 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?

Assume that the company uses an absorption costing system that assigns $19 of direct labor cost and $50 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:

Assume that the company uses an absorption costing system that assigns $28 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. The unit product cost under this costing system is:

The unit product cost under super-variable costing is:

Assume that the company uses an absorption costing system that assigns $16 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. The net operating income under this costing system is:

The company is considering using either super-variable costing or a variable costing system that assigns $28 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?

Super-variable costing is a costing method that treats direct labor and manufacturing overhead costs as period costs and includes only direct materials cost in unit product costs.

All differences between super-variable costing and absorption costing net operating income are explained by the accounting for direct materials costs.

The net operating income for the year under super-variable costing is:

Managerial Accounting and Cost Concepts

Least-Squares Regression Computations

Cost of Quality

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Process Costing

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

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