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1. Bryans Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 53 Manufacturing costs: Variable
1.
Bryans Corporation has provided the following data for its two most recent years of operation:
Selling price per unit | $ | 53 |
Manufacturing costs: | ||
Variable manufacturing cost per unit produced: | ||
Direct materials | $ | 13 |
Direct labor | $ | 6 |
Variable manufacturing overhead | $ | 5 |
Fixed manufacturing overhead per year | $ | 63,000 |
Selling and administrative expenses: | ||
Variable selling and administrative expense per unit sold | $ | 4 |
Fixed selling and administrative expense per year | $ | 71,000 |
Year 1 | Year 2 | ||||
Units in beginning inventory | 0 | 3,000 | |||
Units produced | 9,000 | 7,000 | |||
Units sold | 6,000 | 7,000 | |||
Units in ending inventory | 3,000 | 3,0000 | |||
The unit product cost under variable costing in Year 1 is closest to:
Multiple Choice
$35.00
$24.00
$31.00
$28.00
2.
Danahy Corporation manufactures a single product. The following data pertain to the company's operations over the last two years:
Variable costing net operating income, last year | $ | 52,000 | |
Variable costing net operating income, this year | $ | 68,000 | |
Fixed manufacturing overhead costs released from inventory under absorption costing, last year | $ | 4,000 | |
Fixed manufacturing overhead costs deferred in inventory under absorption costing, this year | $ | 6,000 | |
What was the absorption costing net operating income this year?
Multiple Choice
$62,000
$74,000
$70,000
$66,000
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