Exam 6: Variable Costing: a Tool for Management

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 variable costing?

Which of the following statements is true?

Botwinick 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 last year?

Caparros Corporation manufactures a variety of products.Variable costing net operating income was $62,800 last year and was $74,900 this year.Last year,ending inventory decreased by 3,300 units.This year,ending inventory increased by 1,900 units.Fixed manufacturing overhead cost is $7 per unit. -What was the absorption costing net operating income last year?

Harris Company produces a single product.Last year,Harris manufactured 17,000 units and sold 13,000 units.Production costs for the year were as follows: Sales were $780,000 for the year,variable selling and administrative expenses were $88,400,and fixed selling and administrative expenses were $170,000.There was no beginning inventory.Assume that direct labor is a variable cost. -The contribution margin per unit was:

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: The total contribution margin for the month under variable costing is:

Last year,Brunkow Corporation's variable costing net operating income was $93,500 and ending inventory increased by 800 units.Fixed manufacturing overhead cost per unit was $7. Required: Determine the absorption costing net operating income for last year.Show your work!

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 variable costing?

Net operating income computed using variable costing would exceed net operating income computed using absorption costing if:

Faxon 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 absorption costing?

Abdol 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?

Ilford 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?

Under variable costing,the company's net operating income for the year would be:

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 absorption costing?

Clubb 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 absorption costing was:

Direct labor is always considered to be a product cost under variable costing.