Question
1. Condit Corporation manufactures a variety of products. Variable costing net operating income was $75,600 last year and was $80,100 this year. Last year, inventory
1. Condit Corporation manufactures a variety of products. Variable costing net operating income was $75,600 last year and was $80,100 this year. Last year, inventory decreased by 3,400 units. This year, inventory increased by 3,000 units. Fixed manufacturing overhead cost is $5 per unit. What was the absorption costing net operating income this year?
$78,100 | |
$95,100 | |
$65,100 | |
$73,600 |
2. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price | $225 |
Units in beginning inventory | 0 |
Units produced | 4,600 |
Units sold | 2,500 |
Units in ending inventory | 2,100 |
Variable costs per unit: | |
Direct materials | $29.25 |
Direct labor | $45.25 |
Variable manufacturing overhead | $10.25 |
Variable selling and administrative | $10.25 |
Fixed costs: | |
Fixed manufacturing overhead | $126,000 |
Fixed selling and administrative | $80,000 |
What is the net operating income (loss) for the month under variable costing? |
$144,000 | |
$119,000 | |
$(80,500) | |
$25,000 |
3.
9.
value: 10.00 points
The Gasson Company sells three products, Product A, Product B and Product C, and had sales of $1,400,000 during the month of June. The company's overall contribution margin ratio was 37% and fixed expenses totaled $370,000. Sales were: Product A, $660,000; Product B, $380,000; and Product C, $360,000. Traceable fixed costs were: Product A, $136,000; Product B, $132,000; and Product C, $69,600. The variable expenses of Product A were $380,000 and the variable expenses of Product B were $208,800.
The contribution margin ratio for Product C is: (Round your final percentage to one decimal place.) |
19.3% | |
18.6% | |
81.4% | |
25.7% |
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