Exam 7: Master Budgeting

Kosco Corporation produces a single product. The company's absorption costing income statement for March follows: During March, the company's variable production costs were $8 per unit and its fixed manufacturing overhead totaled $5,000. The contribution margin per unit during March was:

Aaker Corporation, 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 variable costing?

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

Hanks Corporation produces a single product. Operating data for the company and its absorption costing income statements for the last two years are presented below: Variable manufacturing costs are $4 per unit. Fixed manufacturing overhead was $18,000 in each year. This fixed manufacturing overhead was applied at a rate of $2 per unit. Variable selling and administrative expenses were $1 per unit sold. Required: a. Compute the unit product cost in each year under variable costing. b. Prepare new income statements for each year using variable costing. c. Reconcile the absorption costing and variable costing net operating income for each year.

Harris Corporation 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:

Zimmerli 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 last year. Show your work! b. Determine the absorption costing net operating income this year. Show your work!

A company produces a single product. Variable production costs are $12 per unit and variable selling and administrative expenses are $3 per unit. Fixed manufacturing overhead totals $36,000 and fixed selling and administration expenses total $40,000. Assuming a beginning inventory of zero, production of 4,000 units and sales of 3,600 units, the dollar value of the ending inventory under variable costing would be:

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?

Criblez Corporation has two divisions: Blue Division and Gold Division. The following report is for the most recent operating period: The Blue Division's break-even sales is closest to:

A company that produces a single product had a net operating income of $75,000 using variable costing and a net operating income of $95,000 using absorption costing. Total fixed manufacturing overhead was $50,000 and production was 10,000 units both this year and last year. Last year was the first year of operations. Between the beginning and the end of the year, the inventory level:

A manufacturing company that produces a single 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?

Under variable costing, fixed manufacturing overhead is:

Higgins Corporation sells three products, Product A, Product B, and Product C Data concerning the company's most recent month of operations, June, appear below:

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

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

Khanam 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 net operating income for the month under absorption costing?

Hatfield Corporation, 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 variable costing is:

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?

The following data were provided by Rider, Inc, which produces a single product: Under variable costing, the unit product cost is:

Oakes Corporation, which has only one product, has provided the following data concerning its most recent month of operations: 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.