Question 1

Peterson Corporation produces a single product. Data from the company's records for last year follow:   Under variable costing, net operating income would be:

Accepted Answer

A) $217,000 
B) $307,000 
C) $352,000 
D) $374,500 
A) $217,000 
B) $307,000 
C) $352,000 
D) $374,500

Question 2

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

Accepted Answer

a. and b.
Year 1:
Manufacturing overhead

Question 3

Lasorsa Corporation manufactures a single product. Variable costing net operating income last year was $86,000 and this year was $98,000. Last year, $4,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $27,000 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) $63,000 
B) $86,000 
C) $90,000 
D) $82,000 
A) $63,000 
B) $86,000 
C) $90,000 
D) $82,000

Question 4

Mahugh Corporation, 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. 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 costs @#IMG-DLM& @#IMG-DLM& c. & d. Inc

Question 5

During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8,000 units of its only product:   The company also incurred the following costs in selling 7,500 units of product during its first year:   Assume that direct labor is a variable cost. Under absorption costing, what is the total cost that would be assigned to Carlos' finished goods inventory at the end of the first year of operations?

Accepted Answer

A) $15,000 
B) $42,125 
C) $44,000 
D) $47,125 
A) $15,000 
B) $42,125 
C) $44,000 
D) $47,125

Question 6

Crossbow Corp. produces a single product. Data concerning June's operations follow:   Under absorption costing, ending inventory on the balance sheet would be valued at:

Accepted Answer

A) $10,000 
B) $7,000 
C) $9,000 
D) $12,000 
A) $10,000 
B) $7,000 
C) $9,000 
D) $12,000

Question 7

When using data from a segmented income statement, the dollar sales for the company to break even overall is equal to:

Accepted Answer

A) (Allocated fixed expenses + Traceable fixed expenses) ÷ Overall CM ratio 
B) (Traceable fixed expenses + Common fixed expenses) ÷ Overall CM ratio 
C) (Non-traceable fixed expenses + Common fixed expenses) ÷ Overall CM ratio 
D) (Traceable fixed expenses) ÷ Overall CM ratio 
A) (Allocated fixed expenses + Traceable fixed expenses) ÷ Overall CM ratio 
B) (Traceable fixed expenses + Common fixed expenses) ÷ Overall CM ratio 
C) (Non-traceable fixed expenses + Common fixed expenses) ÷ Overall CM ratio 
D) (Traceable fixed expenses) ÷ Overall CM ratio

Question 8

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 variable costing?

Accepted Answer

A) $124,200 
B) $123,200 
C) $168,200 
D) $45,000 
A) $124,200 
B) $123,200 
C) $168,200 
D) $45,000

Question 9

Under variable costing, product costs consist of direct materials, direct labor, and variable manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 10

Cutterski Corporation manufactures a propeller. Shown below is Cutterski's cost structure:   In its first year of operations, Cutterski produced 60,000 propellers but only sold 54,000. What is the total cost that would be assigned to Cutterski's finished goods inventory at the end of the first year of operations under variable costing?

Accepted Answer

A) $765,000 
B) $684,000 
C) $804,000 
D) $912,000 
A) $765,000 
B) $684,000 
C) $804,000 
D) $912,000

Question 11

Keefe Corporation has two divisions: Western Division and Eastern 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. The Eastern Division's break-even sales is closest to:

Accepted Answer

A) $104,872 
B) $368,309 
C) $75,641 
D) $172,103 
A) $104,872 
B) $368,309 
C) $75,641 
D) $172,103

Question 12

Hogans Corporation has two divisions: Delta and Echo. Data from the most recent month appear below:   The company's common fixed expenses total $64,090. The break-even in sales dollars for Echo Division is closest to:

Accepted Answer

A) $250,143 
B) $387,059 
C) $173,469 
D) $304,265 
A) $250,143 
B) $387,059 
C) $173,469 
D) $304,265

Question 13

Yuvil Corporation produces a single product. At the end of the company's first year of operations, 1,000 units of inventory remained on hand. Its variable manufacturing overhead cost is $45 per unit and its fixed manufacturing overhead cost is $10 per unit. Yuvil's absorption costing net operating income would be higher than its variable costing net operating income by:

Accepted Answer

A) $0 
B) $10,000 
C) $35,000 
D) $45,000 
A) $0 
B) $10,000 
C) $35,000 
D) $45,000

Question 14

Hardee 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:

Accepted Answer

A) $35 per unit 
B) $32 per unit 
C) $103 per unit 
D) $33 per unit 
A) $35 per unit 
B) $32 per unit 
C) $103 per unit 
D) $33 per unit

Question 15

Jarvix Corporation, 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?

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 16

Breedon Corporation produces a single product. Data concerning the company's operations last year appear below:   Required:
a. Compute the unit product cost under both absorption and variable costing.
b. Prepare an income statement for the year using absorption costing.
c. Prepare a contribution format income statement for the year using variable costing.
d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.

Accepted Answer

a. @#IMG-DLM& b. @#IMG-DLM& c. @#IMG-DLM& d. Reconciliation
Units in e

Question 17

Clemmens Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for August appear below:   In addition, common fixed expenses totaled $265,000 and were allocated as follows: $135,000 to the Consumer business segment and $130,000 to the Commercial business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the Consumer business segment is:

Accepted Answer

A) $152,000 
B) $76,000 
C) $17,000 
D) $179,000 
A) $152,000 
B) $76,000 
C) $17,000 
D) $179,000

Question 18

Roskos Corporation has two divisions: Town Division and Country Division. The following report is for the most recent operating period:   The company's common fixed expenses total $52,900.
Required:
a. What is the Town Division's break-even in sales dollars?
b. What is the Country Division's break-even in sales dollars?
c. What is the company's overall break-even in sales dollars?

Accepted Answer

@#IMG-DLM& a. Town Division break-even:
Segment CM

Question 19

Yankee Corporation manufactures a single product. The company has the following cost structure:   Last year, 4,000 units were produced and 3,500 units were sold. There were no beginning inventories. Under variable costing, the unit product cost would be:

Accepted Answer

A) $4 per unit 
B) $5 per unit 
C) $7 per unit 
D) $8 per unit 
A) $4 per unit 
B) $5 per unit 
C) $7 per unit 
D) $8 per unit

Question 20

Lee Corporation, 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. Assume direct labor is a variable cost.
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 costs @#IMG-DLM& c. & d. Inco

Peterson Corporation produces a single product. Data from the company's records for last year follow: Under variable costing, net operating income would be:

Crossbow Corp. produces a single product. Data concerning June's operations follow: Under absorption costing, ending inventory on the balance sheet would be valued at:

When using data from a segmented income statement, the dollar sales for the company to break even overall is equal to:

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 variable costing?

Under variable costing, product costs consist of direct materials, direct labor, and variable manufacturing overhead.

Keefe Corporation has two divisions: Western Division and Eastern 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. The Eastern Division's break-even sales is closest to:

Hogans Corporation has two divisions: Delta and Echo. Data from the most recent month appear below: The company's common fixed expenses total $64,090. The break-even in sales dollars for Echo Division is closest to:

Hardee 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:

Yankee Corporation manufactures a single product. The company has the following cost structure: Last year, 4,000 units were produced and 3,500 units were sold. There were no beginning inventories. Under variable costing, the unit product cost would be:

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based Costing

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Flexible Budgets, Standard Costs, and Variance Analysis

Performance Measurement in Decentralized Organizations

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

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Exam 7: Master Budgeting

Peterson Corporation produces a single product. Data from the company's records for last year follow: Under variable costing, net operating income would be:

Crossbow Corp. produces a single product. Data concerning June's operations follow: Under absorption costing, ending inventory on the balance sheet would be valued at:

When using data from a segmented income statement, the dollar sales for the company to break even overall is equal to:

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 variable costing?

Under variable costing, product costs consist of direct materials, direct labor, and variable manufacturing overhead.

Keefe Corporation has two divisions: Western Division and Eastern 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. The Eastern Division's break-even sales is closest to:

Hogans Corporation has two divisions: Delta and Echo. Data from the most recent month appear below: The company's common fixed expenses total $64,090. The break-even in sales dollars for Echo Division is closest to:

Hardee 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:

Yankee Corporation manufactures a single product. The company has the following cost structure: Last year, 4,000 units were produced and 3,500 units were sold. There were no beginning inventories. Under variable costing, the unit product cost would be:

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based Costing

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Flexible Budgets, Standard Costs, and Variance Analysis

Performance Measurement in Decentralized Organizations

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

Filters