Question 1

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

Accepted Answer

A) $190 per unit 
B) $95 per unit 
C) $102 per unit 
D) $96 per unit 
A) $190 per unit 
B) $95 per unit 
C) $102 per unit 
D) $96 per unit

Question 2

Net operating income under variable costing for March would be:

Accepted Answer

A) $7,200 
B) $7,000 
C) $7,600 
D) $6,800 
A) $7,200 
B) $7,000 
C) $7,600 
D) $6,800

Question 3

For the year in question, one would expect the net operating income under absorption costing to be:

Accepted Answer

A) higher than the net operating income under variable costing. 
B) lower than the net operating income under variable costing. 
C) the same as the net operating income under variable costing. 
D) the relation between absorption costing and variable costing net operating incomes cannot be determineD.Manufacturing exceeds sales, so absorption costing net operating income will exceed variable costing net operating income. 
A) higher than the net operating income under variable costing. 
B) lower than the net operating income under variable costing. 
C) the same as the net operating income under variable costing. 
D) the relation between absorption costing and variable costing net operating incomes cannot be determineD.Manufacturing exceeds sales, so absorption costing net operating income will exceed variable costing net operating income.

Question 4

What was the absorption costing net operating income last year?

Accepted Answer

A) $47,000 
B) $49,000 
C) $58,000 
D) $69,000 
A) $47,000 
B) $49,000 
C) $58,000 
D) $69,000

Question 5

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

Accepted Answer

A) $25,900 
B) $2,100 
C) $17,800 
D) $18,500 
A) $25,900 
B) $2,100 
C) $17,800 
D) $18,500

Question 6

Under variable 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) $14,000 
A) $15,000 
B) $42,125 
C) $44,000 
D) $14,000

Question 7

Sorto Corporation has two divisions: the East Division and the West Division. The corporation's net operating income is $93,200. The East Division's divisional segment margin is $223,200 and the West Division's divisional segment margin is $15,900. What is the amount of the common fixed expense not traceable to the individual divisions?

Accepted Answer

A) $316,400 
B) $145,900 
C) $109,100 
D) $239,100 
A) $316,400 
B) $145,900 
C) $109,100 
D) $239,100

Question 8

Waltz Corporation has two divisions: Xi and Sigma. Data from the most recent month appear below:   The company's common fixed expenses total $65,100. The break-even in sales dollars for Sigma Division is closest to:

Accepted Answer

A) $283,218 
B) $379,037 
C) $414,904 
D) $131,685 
A) $283,218 
B) $379,037 
C) $414,904 
D) $131,685

Question 9

Last year, Hruska Corporation's variable costing net operating income was $92,200 and ending inventory decreased by 600 units. Fixed manufacturing overhead cost per unit was $3 in both beginning and ending inventory.
Required:
Determine the absorption costing net operating income for last year. Show your work!

Accepted Answer

Manufacturing overhead deferred in (rele

Question 10

What is the unit product cost for the month under variable costing?

Accepted Answer

A) $89 per unit 
B) $97 per unit 
C) $108 per unit 
D) $78 per unit 
A) $89 per unit 
B) $97 per unit 
C) $108 per unit 
D) $78 per unit

Question 11

In last year's income statement segmented by division, what were Nantua's total common fixed expenses?

Accepted Answer

A) $450,000 
B) $800,000 
C) $1,250,000 
D) $1,300,000 
A) $450,000 
B) $800,000 
C) $1,250,000 
D) $1,300,000

Question 12

Swifton Corporation produces a single product. Last year, the company had net operating income of $40,000 using variable costing. Beginning and ending inventories were 22,000 and 27,000 units, respectively. If the fixed manufacturing overhead cost was $3 per unit both last year and this year, what was the income using absorption costing?

Accepted Answer

A) $15,000 
B) $25,000 
C) $40,000 
D) $55,000 
A) $15,000 
B) $25,000 
C) $40,000 
D) $55,000

Question 13

The term gross margin is used in reports prepared using:

Accepted Answer

A) both absorption costing and variable costing. 
B) absorption costing but not variable costing. 
C) variable costing but not absorption costing. 
D) neither variable costing nor absorption costing. 
A) both absorption costing and variable costing. 
B) absorption costing but not variable costing. 
C) variable costing but not absorption costing. 
D) neither variable costing nor absorption costing.

Question 14

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

Accepted Answer

A) $376,077 
B) $317,885 
C) $244,872 
D) $584,762 
A) $376,077 
B) $317,885 
C) $244,872 
D) $584,762

Question 15

Under absorption costing, fixed manufacturing overhead cost is not included in product cost.

Accepted Answer

A) True 
 B)False

Question 16

Bartelt 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 absorption costing unit product cost was:

Accepted Answer

A) $125 per unit 
B) $246 per unit 
C) $117 per unit 
D) $183 per unit 
A) $125 per unit 
B) $246 per unit 
C) $117 per unit 
D) $183 per unit

Question 17

When production exceeds sales and the company uses the LIFO inventory flow assumption, the net operating income reported under absorption costing generally will be:

Accepted Answer

A) less than net operating income reported under variable costing. 
B) greater than net operating income reported under variable costing. 
C) equal to net operating income reported under variable costing. 
D) higher or lower because no generalization can be made. 
A) less than net operating income reported under variable costing. 
B) greater than net operating income reported under variable costing. 
C) equal to net operating income reported under variable costing. 
D) higher or lower because no generalization can be made.

Question 18

Pabbatti 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.
Required:
a. What is the unit product cost for the month under variable costing?
b. Prepare a contribution format income statement for the month using variable costing.
c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.)

Accepted Answer

a. Variable costing unit product cost @#IMG-DLM& b

Question 19

The contribution margin ratio for Product C for June was:

Accepted Answer

A) 0% 
B) 30% 
C) 38% 
D) 70% 
A) 0% 
B) 30% 
C) 38% 
D) 70%

Question 20

The contribution margin of the West business segment is:

Accepted Answer

A) $418,000 
B) -$57,000 
C) $513,000 
D) $66,000 
A) $418,000 
B) -$57,000 
C) $513,000 
D) $66,000

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

Net operating income under variable costing for March would be:

For the year in question, one would expect the net operating income under absorption costing to be:

What was the absorption costing net operating income last year?

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

Under variable costing, what is the total cost that would be assigned to Carlos' finished goods inventory at the end of the first year of operations?

Waltz Corporation has two divisions: Xi and Sigma. Data from the most recent month appear below: The company's common fixed expenses total $65,100. The break-even in sales dollars for Sigma Division is closest to:

What is the unit product cost for the month under variable costing?

In last year's income statement segmented by division, what were Nantua's total common fixed expenses?

The term gross margin is used in reports prepared using:

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

Under absorption costing, fixed manufacturing overhead cost is not included in product cost.

Bartelt 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 absorption costing unit product cost was:

When production exceeds sales and the company uses the LIFO inventory flow assumption, the net operating income reported under absorption costing generally will be:

The contribution margin ratio for Product C for June was:

The contribution margin of the West business segment is:

Managerial Accounting and Cost Concepts

Least-Squares Regression Computations

Cost of Quality

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Process Costing

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Super-Variable Costing

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

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

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

Net operating income under variable costing for March would be:

For the year in question, one would expect the net operating income under absorption costing to be:

What was the absorption costing net operating income last year?

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

Under variable costing, what is the total cost that would be assigned to Carlos' finished goods inventory at the end of the first year of operations?

Waltz Corporation has two divisions: Xi and Sigma. Data from the most recent month appear below: The company's common fixed expenses total $65,100. The break-even in sales dollars for Sigma Division is closest to:

What is the unit product cost for the month under variable costing?

In last year's income statement segmented by division, what were Nantua's total common fixed expenses?

The term gross margin is used in reports prepared using:

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

Under absorption costing, fixed manufacturing overhead cost is not included in product cost.

Bartelt 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 absorption costing unit product cost was:

When production exceeds sales and the company uses the LIFO inventory flow assumption, the net operating income reported under absorption costing generally will be:

The contribution margin ratio for Product C for June was:

The contribution margin of the West business segment is:

Managerial Accounting and Cost Concepts

Least-Squares Regression Computations

Cost of Quality

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Process Costing

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Super-Variable Costing

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

Filters