Exam 6: Variable Costing: a Tool for Management

Abdol Company,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 the variable costing approach is:

Slovick 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 unit product cost under variable costing was:

Elder 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?

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 absorption costing,the unit product cost would be:

Since variable costing emphasizes costs by behavior,it works well with cost-volume-profit analysis.

Faxon 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?

Gallager 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?

Przygocki Inc. ,which produces a single product,has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. Required: Compute the unit product cost under absorption costing.Show your work!

During its first year of operations,Holt Manufacturing Company incurred the following costs to produce 200,000 units of its only product: Holt also incurred the following costs in the sale of 180,000 units of product during its first year: Assume that direct labor is a variable cost. -If Holt's variable costing net operating income for this first year is $397,800,what would its absorption costing net operating income be for this first year?

Neuman 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.Prepare a contribution format income statement for the month using variable costing. b.Prepare an income statement for the month using absorption costing.

Variable selling and administrative expenses are part of product costs under the variable costing approach.

Which of the following statements is true?

Nimocks Inc. ,which produces a single product,has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. 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!

Abdol 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:

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

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 net operating income for the month under variable costing?

The gross margin for a manufacturing company is the excess of sales over:

Ross Company produces a single product.The company has direct materials costs of $8 per unit,direct labor costs of $6 per unit,and manufacturing overhead of $10 per unit.Sixty percent of the manufacturing overhead is for fixed costs.In addition,variable selling and administrative costs are $2 per unit,and fixed selling and administrative costs are $3 per unit at the current activity level.Assume that direct labor is a variable cost. -Under absorption costing,the unit product cost is:

Gallager 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?

Abdol 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?