Question 1

Kray 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 variable costing unit product cost was:

Accepted Answer

A)  $91 per unit
B)  $67 per unit
C)  $69 per unit
D)  $61 per unitE) None of the above
F) B) and C)

Question 2

The unit product cost under variable costing in Year 1 is closest to:

Accepted Answer

A)  $35.00
B)  $24.00
C)  $31.00
D)  $28.00E) None of the above
F) A) and B)

Question 3

The net operating income (loss) under absorption costing closest to:

Accepted Answer

A)  ($4,000) 
B)  $9,000
C)  $117,000
D)  $72,000E) None of the above
F) C) and D)

Question 4

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

Accepted Answer

A)  $141,558
B)  $197,078
C)  $244,701
D)  $386,408E) A) and B)
F) B) and C)

Question 5

Borunda Corporation has provided the following data for its two most recent years of operation:    Required:
a.Assume the company uses absorption costing.Prepare an income statement for each year.
b.Assume the company uses variable costing.Prepare an income statement for each year.
c.Prepare a report in good form reconciling the variable costing and absorption costing net incomes.

Accepted Answer

a.Absorption costing unit product costs:...

Question 6

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

Accepted Answer

A)  $294,000
B)  $422,000
C)  $132,000
D)  ($30,000) E) A) and B)
F) None of the above

Question 7

The contribution margin of the West business segment is:

Accepted Answer

A)  $84,000
B)  $234,000
C)  $422,000
D)  $145,000E) A) and B)
F) A) and C)

Question 8

The following data pertain to last year's operations at Clarkson, Incorporated, a company that produces a single product:  What was the absorption costing net operating income last year?

Accepted Answer

A)  $44,000
B)  $48,000
C)  $50,000
D)  $49,000E) B) and D)
F) A) and D)

Question 9

The net operating income (loss) under variable costing is closest to:

Accepted Answer

A)  $184,000
B)  $216,000
C)  $3,000
D)  $33,000E) A) and B)
F) A) and C)

Question 10

Chang Corporation has two divisions, T and W.The company's overall contribution margin ratio is 40%, with sales in the two divisions totaling $900,000.If variable expenses are $200,000 in Division T and if Division W's contribution margin ratio is 20%, the sales in Division W must be:

Accepted Answer

A)  $200,000
B)  $425,000
C)  $700,000
D)  $340,000E) C) and D)
F) B) and D)

Question 11

The net operating income (loss) under variable costing in Year 2 is closest to:

Accepted Answer

A)  $74,000
B)  $216,000
C)  $261,000
D)  $68,000E) B) and C)
F) None of the above

Question 12

Last year, Rasband Corporation's variable costing net operating income was $57,000.The fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $30,000.
Required:
Determine the absorption costing net operating income last year.Show your work!

Accepted Answer

The answer of Last year, Rasband Corporation's variable costing net...

Question 13

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

Accepted Answer

A)  $398,837
B)  $288,296
C)  $488,153
D)  $89,316E) A) and B)
F) B) and C)

Question 14

The unit product cost under absorption costing in Year 1 is closest to:

Accepted Answer

A)  $38.00
B)  $32.00
C)  $23.00
D)  $9.00E) B) and D)
F) A) and B)

Question 15

The company's net operating income under variable costing would be:

Accepted Answer

A)  $407,500
B)  $421,250
C)  $431,250
D)  $417,500E) All of the above
F) B) and C)

Question 16

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)  $149,600
B)  $60,000
C)  $88,000
D)  $89,600E) A) and D)
F) All of the above

Question 17

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

Accepted Answer

A)  $5,400
B)  $1,700
C)  $(4,500) 
D)  $3,700E) None of the above
F) B) and D)

Question 18

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

Accepted Answer

A)  $93,100
B)  $133,100
C)  $40,000
D)  $73,500E) All of the above
F) C) and D)

Question 19

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

Accepted Answer

A)  $14,500
B)  $17,400
C)  $11,300
D)  $2,900E) C) and D)
F) All of the above

Question 20

The net operating income (loss) under variable costing is closest to:

Accepted Answer

A)  $234,000
B)  $9,000
C)  ($4,000) 
D)  $189,000E) A) and C)
F) B) and C)

Exam 7: Variable Costing and Segment Reporting: Tools for Management

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

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

Correct Answer
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The company's net operating income under variable costing would be:

Correct Answer
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The unit product cost under variable costing in Year 1 is closest to:

Correct Answer
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The net operating income (loss) under absorption costing closest to:

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

Correct Answer
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Chang Corporation has two divisions, T and W.The company's overall contribution margin ratio is 40%, with sales in the two divisions totaling $900,000.If variable expenses are $200,000 in Division T and if Division W's contribution margin ratio is 20%, the sales in Division W must be:

Correct Answer
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Correct Answer
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a.Absorption costing unit product costs:...
View Answer

The net operating income (loss) under variable costing in Year 2 is closest to:

Correct Answer
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The contribution margin of the West business segment is:

Correct Answer
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Last year, Rasband Corporation's variable costing net operating income was $57,000.The fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $30,000. Required: Determine the absorption costing net operating income last year.Show your work!

Correct Answer
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The net operating income (loss) under variable costing is closest to:

Correct Answer
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The unit product cost under absorption costing in Year 1 is closest to:

Correct Answer
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Kray 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 variable costing unit product cost was:

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
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The net operating income (loss) under variable costing is closest to:

Correct Answer
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The following data pertain to last year's operations at Clarkson, Incorporated, a company that produces a single product: What was the absorption costing net operating income last year?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Exam 7: Variable Costing and Segment Reporting: Tools for Management

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The company's net operating income under variable costing would be:

Correct AnswerverifiedShow Answer

The unit product cost under variable costing in Year 1 is closest to:

Correct AnswerverifiedShow Answer

The net operating income (loss) under absorption costing closest to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Chang Corporation has two divisions, T and W.The company's overall contribution margin ratio is 40%, with sales in the two divisions totaling $900,000.If variable expenses are $200,000 in Division T and if Division W's contribution margin ratio is 20%, the sales in Division W must be:

Correct AnswerverifiedShow Answer

Correct Answerverifieda.Absorption costing unit product costs:...View AnswerShow Answer

The net operating income (loss) under variable costing in Year 2 is closest to:

Correct AnswerverifiedShow Answer

The contribution margin of the West business segment is:

Correct AnswerverifiedShow Answer

Last year, Rasband Corporation's variable costing net operating income was $57,000.The fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $30,000. Required: Determine the absorption costing net operating income last year.Show your work!

Correct AnswerverifiedShow Answer

The net operating income (loss) under variable costing is closest to:

Correct AnswerverifiedShow Answer

The unit product cost under absorption costing in Year 1 is closest to:

Correct AnswerverifiedShow Answer

Kray 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 variable costing unit product cost was:

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The net operating income (loss) under variable costing is closest to:

Correct AnswerverifiedShow Answer

The following data pertain to last year's operations at Clarkson, Incorporated, a company that produces a single product: What was the absorption costing net operating income last year?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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a.Absorption costing unit product costs:...
View Answer

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