Exam 7: Super-Variable Costing

Paparelli 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 expenses.During its first year of operations,the company produced 40,000 units and sold 33,000 units.The company's only product is sold for $240 per unit. The net operating income for the year under super-variable costing is:

(Appendix 6A) Tremble 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 expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit. -The unit product cost under super-variable costing is:

Dattilio 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 expenses.During its first year of operations,the company produced 54,000 units and sold 49,000 units.The company's only product is sold for $238 per unit. Required: a.Assume the company uses super-variable costing.Compute the unit product cost for the year. b.Assume the company uses super-variable costing.Prepare an income statement for the year.

(Appendix 6A) Letcher 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 expenses. During its first year of operations, the company produced 56,000 units and sold 54,000 units. The company's only product is sold for $227 per unit. -The net operating income for the year under super-variable costing is:

(Appendix 6A) Buckbee 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 expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit. -The unit product cost under super-variable costing is:

Sawicki 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 expenses.During its first year of operations,the company produced 25,000 units and sold 18,000 units.The company's only product is sold for $224 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 an absorption costing system that assigns $10 of direct labor cost and $62 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.

(Appendix 6A) Union 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 expenses. During its first year of operations, the company produced 24,000 units and sold 17,000 units. The company's only product is sold for $232 per unit. -Assume that the company uses an absorption costing system that assigns $22 of direct labor cost and $68 of fixed manufacturing overhead to each unit that is produced.The net operating income under this costing system is:

(Appendix 6A) Marcelin 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 expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit. -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?

(Appendix 6A) Tremble 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 expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit. -Assume that the company uses an absorption costing system that assigns $11 of direct labor cost and $75 of fixed manufacturing overhead to each unit that is produced.The unit product cost under this costing system is:

(Appendix 6A) Leheny 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 expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit. -Assume that the company uses a variable costing system that assigns $21 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

All differences between super-variable costing and variable costing net operating income are explained by the accounting for manufacturing overhead costs.

(Appendix 6A) Buckbee 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 expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit. -Assume that the company uses a variable costing system that assigns $17 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

(Appendix 6A) Dallavalle 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 expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit. -Assume that the company uses an absorption costing system that assigns $10 of direct labor cost and $67 of fixed manufacturing overhead to each unit that is produced.The unit product cost under this costing system is:

(Appendix 6A) Marcelin 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 expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit. -The unit product cost under super-variable costing is:

(Appendix 6A) Tremble 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 expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit. -Assume that the company uses a variable costing system that assigns $11 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:

Super-variable costing is most appropriate where:

(Appendix 6A) Stubenrauch 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 expenses. During its first year of operations, the company produced 38,000 units and sold 32,000 units. The company's only product is sold for $240 per unit. -The net operating income for the year under super-variable costing is:

Michelman 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 expenses.During its first year of operations,the company produced 34,000 units and sold 31,000 units.The company's only product is sold for $254 per unit. The company is considering using either super-variable costing or an absorption costing system that assigns $28 of direct labor cost and $75 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?

Woodall 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 expenses.During its first year of operations,the company produced 46,000 units and sold 44,000 units.The company's only product is sold for $235 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 $14 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 $14 of direct labor cost and $56 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.

Shelko 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 expenses.During its first year of operations,the company produced 42,000 units and sold 37,000 units.The company's only product is sold for $272 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 an absorption costing system that assigns $28 of direct labor cost and $70 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. c.Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes.