Question 1

Mcgougan Corporation produces a single product and has the following cost structure:  
-The unit product cost under absorption costing is:

Accepted Answer

A) $126 
B) $158 
C) $139 
D) $121 
A) $126 
B) $158 
C) $139 
D) $121 C

Question 2

Under variable costing,product cost contains some fixed manufacturing overhead cost.

Accepted Answer

A) True 
 B)False  False

Question 3

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:   What is the variable costing unit product cost for the month?

Accepted Answer

A) $97 
B) $90 
C) $68 
D) $75 
A) $97 
B) $90 
C) $68 
D) $75 C

Question 4

Erie Company manufactures a single product.Assume the following data for the year just completed:   There were no units in inventory at the beginning of the year.During the year 30,000 units were produced and 25,000 units were sold.Each unit sells for $35.
-Under absorption costing,the unit product cost would be:

Accepted Answer

A) $8.00 
B) $17.75 
C) $13.00 
D) $10.75 
A) $8.00 
B) $17.75 
C) $13.00 
D) $10.75

Question 5

Hackney 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?

Accepted Answer

A) $92 
B) $107 
C) $100 
D) $85 
A) $92 
B) $107 
C) $100 
D) $85

Question 6

Kidwell 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.
-What is the net operating income for the month under absorption costing?

Accepted Answer

A) $5,800 
B) $16,000 
C) $5,400 
D) $8,300 
A) $5,800 
B) $16,000 
C) $5,400 
D) $8,300

Question 7

Abdol 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 absorption costing?

Accepted Answer

A) $9,500 
B) $3,500 
C) $5,700 
D) $13,000 
A) $9,500 
B) $3,500 
C) $5,700 
D) $13,000

Question 8

Boyar Corporation manufactures a variety of products.The following data pertain to the company's operations over the last two years:   Required:
a.Determine the absorption costing net operating income last year.Show your work!
b.Determine the absorption costing net operating income this year.Show your work!

Accepted Answer

The answer of Boyar Corporation manufactures a variety of products.The...

Question 9

Walsh Company produces a single product.Last year,the company manufactured 25,000 units and sold 22,000 units.Production costs were as follows:   Sales totaled $440,000,variable selling and administrative expenses were $110,000,and fixed selling and administrative expenses were $45,000.There was no beginning inventory.Assume that direct labor is a variable cost.
-The net operating income under variable costing would be:

Accepted Answer

A) $2,000 
B) $21,000 
C) $12,000 
D) $9,000 
A) $2,000 
B) $21,000 
C) $12,000 
D) $9,000

Question 10

Crystal Company produces a single product.The company's variable costing income statement for the month of May appears below:   The company produced 80,000 units in May and the beginning inventory consisted of 25,000 units.Variable production costs per unit and total fixed costs have remained constant over the past several months.
-The dollar value of the company's inventory on May 31 under the absorption costing method would be:

Accepted Answer

A) $120,000 
B) $90,000 
C) $75,000 
D) $60,000 
A) $120,000 
B) $90,000 
C) $75,000 
D) $60,000

Question 11

Qiu Company,which has only one product,has provided the following data concerning its most recent month of operations:   Required:
a.What is the unit product cost for the month under variable costing?
b.Prepare a contribution format income statement for the month using variable costing.
c.Without preparing an income statement,determine the absorption costing net operating income for the month.(Hint: Use the reconciliation method. )

Accepted Answer

The answer of Qiu Company,which has only one product,has provided...

Question 12

Leibson 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.

Accepted Answer

a.& b.Unit product c

Question 13

Schubert Corporation manufactures a variety of products.Variable costing net operating income last year was $59,000 and this year was $70,000.Last year,$31,000 in fixed manufacturing overhead costs were released from inventory under absorption costing.This year,$22,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing.
-What was the absorption costing net operating income this year?

Accepted Answer

A) $92,000 
B) $58,000 
C) $79,000 
D) $61,000 
A) $92,000 
B) $58,000 
C) $79,000 
D) $61,000

Question 14

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:   What is the total period cost for the month under absorption costing?

Accepted Answer

A) $48,000 
B) $275,100 
C) $86,400 
D) $188,700 
A) $48,000 
B) $275,100 
C) $86,400 
D) $188,700

Question 15

Schubert Corporation manufactures a variety of products.Variable costing net operating income last year was $59,000 and this year was $70,000.Last year,$31,000 in fixed manufacturing overhead costs were released from inventory under absorption costing.This year,$22,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing.
-What was the absorption costing net operating income last year?

Accepted Answer

A) $90,000 
B) $59,000 
C) $28,000 
D) $68,000 
A) $90,000 
B) $59,000 
C) $28,000 
D) $68,000

Question 16

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

Accepted Answer

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

Question 17

Lee Company produces a single product.At the end of last year,the company had 30,000 units in its ending inventory.Lee's variable production costs are $10 per unit and its fixed manufacturing overhead costs are $5 per unit every year.The company's net operating income for the year was $12,000 higher under variable costing than under absorption costing.Given these facts,the number of units of product in inventory at the beginning of the year must have been:

Accepted Answer

A) 28,800 units 
B) 27,600 units 
C) 32,400 units 
D) 42,000 units 
A) 28,800 units 
B) 27,600 units 
C) 32,400 units 
D) 42,000 units

Question 18

Jarmon 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.
-What is the unit product cost for the month under variable costing?

Accepted Answer

A) $78 
B) $105 
C) $73 
D) $110 
A) $78 
B) $105 
C) $73 
D) $110

Question 19

Walsh Company produces a single product.Last year,the company manufactured 25,000 units and sold 22,000 units.Production costs were as follows:   Sales totaled $440,000,variable selling and administrative expenses were $110,000,and fixed selling and administrative expenses were $45,000.There was no beginning inventory.Assume that direct labor is a variable cost.
-Under variable costing,the total amount of fixed manufacturing cost in the ending inventory would be:

Accepted Answer

A) $0 
B) $9,000 
C) $14,400 
D) $27,000 
A) $0 
B) $9,000 
C) $14,400 
D) $27,000

Question 20

Assuming that direct labor is a variable cost,product costs under variable costing include only:

Accepted Answer

A) direct materials and direct labor. 
B) direct materials,direct labor,and variable manufacturing overhead. 
C) direct materials,direct labor,variable manufacturing overhead,and variable selling and administrative expenses. 
D) direct material,variable manufacturing overhead,and variable selling and administrative expenses. 
A) direct materials and direct labor. 
B) direct materials,direct labor,and variable manufacturing overhead. 
C) direct materials,direct labor,variable manufacturing overhead,and variable selling and administrative expenses. 
D) direct material,variable manufacturing overhead,and variable selling and administrative expenses.

Mcgougan Corporation produces a single product and has the following cost structure: -The unit product cost under absorption costing is:

Under variable costing,product cost contains some fixed manufacturing overhead cost.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the variable costing unit product cost for the month?

Hackney 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?

Abdol 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 absorption costing?

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the total period cost for the month under absorption costing?

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

Assuming that direct labor is a variable cost,product costs under variable costing include only:

Managerial Accounting and the Business Environment

Managerial Accounting and Cost Concepts

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Activity-Based Costing: a Tool to Aid Decision Making

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Operating Performance Measures

Segment Reporting,decentralization,and the Balanced Scorecard

Relevant Costs for Decision Making

Capital Budgeting Decisions

Pricing Products and Services

Profitability Analysis

Least-Squares Regression Computations

The Predetermined Overhead Rate and Capacity

Abc Action Analysis

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

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Exam 6: Variable Costing: a Tool for Management

Mcgougan Corporation produces a single product and has the following cost structure: -The unit product cost under absorption costing is:

Under variable costing,product cost contains some fixed manufacturing overhead cost.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the variable costing unit product cost for the month?

Hackney 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?

Abdol 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 absorption costing?

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the total period cost for the month under absorption costing?

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

Assuming that direct labor is a variable cost,product costs under variable costing include only:

Managerial Accounting and the Business Environment

Managerial Accounting and Cost Concepts

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Activity-Based Costing: a Tool to Aid Decision Making

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Operating Performance Measures

Segment Reporting,decentralization,and the Balanced Scorecard

Relevant Costs for Decision Making

Capital Budgeting Decisions

Pricing Products and Services

Profitability Analysis

Least-Squares Regression Computations

The Predetermined Overhead Rate and Capacity

Abc Action Analysis

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

Filters