Question 1

The contribution margin of the Commercial business segment is:

Accepted Answer

A) $17,000 
B) $152,000 
C) $476,000 
D) $265,000 
A) $17,000 
B) $152,000 
C) $476,000 
D) $265,000

Question 2

What is the net operating income for the month under variable costing?

Accepted Answer

A) $6,600 
B) $5,600 
C) $(17,200) 
D) $12,200 
A) $6,600 
B) $5,600 
C) $(17,200) 
D) $12,200

Question 3

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

Accepted Answer

The answer of Jimerson Corporation produces a single product and...

Question 4

Gunderman Corporation has two divisions: the Alpha Division and the Charlie Division. The Alpha Division has sales of $230,000, variable expenses of $131,100, and traceable fixed expenses of $63,300. The Charlie Division has sales of $540,000, variable expenses of $307,800, and traceable fixed expenses of $120,700. The total amount of common fixed expenses not traceable to the individual divisions is $119,200. What is the company's net operating income?

Accepted Answer

A) $147,100 
B) $331,100 
C) $27,900 
D) $211,900 
A) $147,100 
B) $331,100 
C) $27,900 
D) $211,900

Question 5

The Domestic Division's break-even sales is closest to:

Accepted Answer

A) $252,632 
B) $466,116 
C) $178,947 
D) $316,737 
A) $252,632 
B) $466,116 
C) $178,947 
D) $316,737

Question 6

What is the unit product cost for the month under absorption costing?

Accepted Answer

A) $90 per unit 
B) $74 per unit 
C) $81 per unit 
D) $83 per unit 
A) $90 per unit 
B) $74 per unit 
C) $81 per unit 
D) $83 per unit

Question 7

What is the net operating income for the month under variable costing?

Accepted Answer

A) $10,600 
B) $(17,000) 
C) $16,600 
D) $6,000 
A) $10,600 
B) $(17,000) 
C) $16,600 
D) $6,000

Question 8

The principal difference between variable costing and absorption costing centers on:

Accepted Answer

A) whether variable manufacturing costs should be included in product costs. 
B) whether fixed manufacturing costs should be included in product costs. 
C) whether fixed manufacturing costs and fixed selling and administrative costs should be included in product costs. 
D) whether selling and administrative costs should be included in product costs. 
A) whether variable manufacturing costs should be included in product costs. 
B) whether fixed manufacturing costs should be included in product costs. 
C) whether fixed manufacturing costs and fixed selling and administrative costs should be included in product costs. 
D) whether selling and administrative costs should be included in product costs.

Question 9

The total contribution margin for the month under variable costing is:

Accepted Answer

A) $62,800 
B) $95,200 
C) $183,600 
D) $156,400 
A) $62,800 
B) $95,200 
C) $183,600 
D) $156,400

Question 10

Under absorption costing, fixed manufacturing overhead costs:

Accepted Answer

A) are deferred in inventory when production exceeds sales. 
B) are always treated as period costs. 
C) are released from inventory when production exceeds sales. 
D) are ignored. 
A) are deferred in inventory when production exceeds sales. 
B) are always treated as period costs. 
C) are released from inventory when production exceeds sales. 
D) are ignored.

Question 11

What is the net operating income for the month under variable costing?

Accepted Answer

A) $27,300 
B) $16,200 
C) $(7,200) 
D) $11,100 
A) $27,300 
B) $16,200 
C) $(7,200) 
D) $11,100

Question 12

Errera Corporation has two major business segments-Retail and Wholesale. In July, the Retail business segment had sales revenues of $100,000, variable expenses of $54,000, and traceable fixed expenses of $16,000. During the same month, the Wholesale business segment had sales revenues of $920,000, variable expenses of $386,000, and traceable fixed expenses of $156,000. Common fixed expenses totaled $269,000 and were allocated as follows: $156,000 to the Retail business segment and $113,000 to the Wholesale business segment.
Required:
Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.

Accepted Answer

The answer of Errera Corporation has two major business segments-Retail...

Question 13

Direct materials is considered to be a product cost under variable costing but not absorption costing.

Accepted Answer

A) True 
 B)False

Question 14

DC Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $62,000 annually and one salaried estimator who is paid $36,000 annually. The corporate office has two office administrative assistants who are paid salaries of $40,000 and $32,000 annually. The president's salary is $138,000. How much of these salaries are common fixed expenses?

Accepted Answer

A) $138,000 
B) $210,000 
C) $72,000 
D) $258,000 
A) $138,000 
B) $210,000 
C) $72,000 
D) $258,000

Question 15

Under absorption costing, the profit for a period is affected by a change in the number of units of finished goods in inventory.

Accepted Answer

A) True 
 B)False

Question 16

Common fixed expenses for Higgins Corporation for June were:

Accepted Answer

A) $45,000 
B) $420,000 
C) $150,000 
D) $105,000 
A) $45,000 
B) $420,000 
C) $150,000 
D) $105,000

Question 17

Under variable costing, the unit product cost is:

Accepted Answer

A) $14 per unit 
B) $13 per unit 
C) $10 per unit 
D) $16 per unit 
A) $14 per unit 
B) $13 per unit 
C) $10 per unit 
D) $16 per unit

Question 18

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

Accepted Answer

The answer of Ronan Corporation produces a single product and...

Question 19

What was the absorption costing net operating income last year?

Accepted Answer

A) $63,000 
B) $86,000 
C) $90,000 
D) $82,000 
A) $63,000 
B) $86,000 
C) $90,000 
D) $82,000

Question 20

Minick Corporation has two divisions: Grocery Division and Convenience 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.
Required:
a. What is the Grocery Division's break-even in sales dollars?
b. What is the Convenience Division's break-even in sales dollars?
c. What is the company's overall break-even in sales dollars?
d. What would be the company's overall net operating income if the company operated at its two division's break-even points?

Accepted Answer

a. Grocery Division break-even:
Segment

The contribution margin of the Commercial business segment is:

What is the net operating income for the month under variable costing?

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

The Domestic Division's break-even sales is closest to:

What is the unit product cost for the month under absorption costing?

What is the net operating income for the month under variable costing?

The principal difference between variable costing and absorption costing centers on:

The total contribution margin for the month under variable costing is:

Under absorption costing, fixed manufacturing overhead costs:

What is the net operating income for the month under variable costing?

Direct materials is considered to be a product cost under variable costing but not absorption costing.

Under absorption costing, the profit for a period is affected by a change in the number of units of finished goods in inventory.

Common fixed expenses for Higgins Corporation for June were:

Under variable costing, the unit product cost is:

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

What was the absorption costing net operating income last year?

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

Super-Variable Costing

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

Filters

Exam 11: Variable Costing and Segment Reporting: Tools for Management

The contribution margin of the Commercial business segment is:

What is the net operating income for the month under variable costing?

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

The Domestic Division's break-even sales is closest to:

What is the unit product cost for the month under absorption costing?

What is the net operating income for the month under variable costing?

The principal difference between variable costing and absorption costing centers on:

The total contribution margin for the month under variable costing is:

Under absorption costing, fixed manufacturing overhead costs:

What is the net operating income for the month under variable costing?

Direct materials is considered to be a product cost under variable costing but not absorption costing.

Under absorption costing, the profit for a period is affected by a change in the number of units of finished goods in inventory.

Common fixed expenses for Higgins Corporation for June were:

Under variable costing, the unit product cost is:

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

What was the absorption costing net operating income last year?

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

Super-Variable Costing

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

Filters