Exam 11: Variable Costing and Segment Reporting: Tools for Management

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!

The company's overall break-even sales in dollars is closest to:

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: What is the net operating income for the month under absorption costing?

The total contribution margin for the month under variable costing is:

Carrejo Corporation has two divisions: Division M and Division N. Data from the most recent month appear below: Management has allocated common fixed expenses to the Divisions based on their sales. The break-even in sales dollars for Division N is closest to:

The break-even point in units for the month under variable costing would be:

Under absorption costing, ending inventory on the balance sheet would be valued at:

Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $10,700. The BAJ Division's divisional segment margin is $76,100 and the CBB Division's divisional segment margin is $42,300. What is the amount of the common fixed expense not traceable to the individual divisions?

The Northern Division's break-even sales is closest to:

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.

Last year, Walters Corporation's variable costing net operating income was $60,800 and its inventory decreased by 200 units. Fixed manufacturing overhead cost was $3 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year?

A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

What is the net operating income for the month under absorption costing?

Under absorption costing, the cost of goods sold for the year would be:

Craft Corporation produces a single product. Last year, the company had a net operating income of $80,000 using absorption costing and $74,500 using variable costing. The fixed manufacturing overhead cost was $5 per unit. There were no beginning inventories. If 21,500 units were produced last year, then sales last year were:

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

The Dean Corporation produces and sells a single product. The following data refer to the year just completed: Assume that direct labor is a variable cost. Required: a. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches. 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. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.

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?

What is the total period cost for the month under variable costing?