Question
11. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory
11.
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: |
Units in beginning inventory | 0 |
Units produced | 4,150 |
Units sold | 4,050 |
Units in ending inventory | 100 |
Variable costs per unit:
Direct materials | $ | 44 |
Direct labor | $ | 46 |
Variable manufacturing overhead | $ | 9 |
Variable selling and administrative | $ | 7 |
Fixed costs:
Fixed manufacturing overhead | $ | 87,150 |
Fixed selling and administrative | $ | 40,500 |
What is the variable costing unit product cost for the month?
$106 per unit
$127 per unit
$99 per unit
$117 per unit
12.
Olds Inc., which produces a single product, has provided the following data for its most recent month of operations: |
Number of units produced | 10,700 |
Variable costs per unit: | |
Direct materials | $108 |
Direct labor | $51 |
Variable manufacturing overhead | $7 |
Variable selling and administrative expense | $9 |
Fixed costs: | |
Fixed manufacturing overhead | $417,300 |
Fixed selling and administrative expense | $834,600 |
There were no beginning or ending inventories. The absorption costing unit product cost was: |
$159 per unit
$205 per unit
$166 per unit
$292 per unit
13.
A company produces a single product. Variable production costs are $12.5 per unit and variable selling and administrative expenses are $3.5 per unit. Fixed manufacturing overhead totals $41,000 and fixed selling and administration expenses total $45,000. Assuming a beginning inventory of zero, production of 4,500 units and sales of 3,850 units, the dollar value of the ending inventory under variable costing would be: |
$8,125
$13,975
$10,400
$5,850
14.
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: |
Selling price | $176 |
Units in beginning inventory | 0 |
Units produced | 12,900 |
Units sold | 12,500 |
Units in ending inventory | 400 |
Variable cost per unit: | |
Direct materials | $54 |
Direct labor | $48 |
Variable manufacturing overhead | $12 |
Variable selling and administrative | $8 |
Fixed costs: | |
Fixed manufacturing overhead | $412,800 |
Fixed selling and administrative | $225,000 |
What is the total period cost for the month under variable costing? |
$412,800
$325,000
$637,800
$737,800
15.
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: |
Selling price | $140 |
Units in beginning inventory | 0 |
Units produced | 3,150 |
Units sold | 2,760 |
Units in ending inventory | 390 |
Variable cost per unit: | |
Direct materials | $47 |
Direct labor | $18 |
Variable manufacturing overhead | $10 |
Variable selling and administrative | $19 |
Fixed costs: | |
Fixed manufacturing overhead | $107,100 |
Fixed selling and administrative expenses | $24,840 |
The total gross margin for the month under absorption costing is: |
$85,560
$8,280
$116,160
$126,960
16.
Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $11,400. The BAJ Division's divisional segment margin is $79,600 and the CBB Division's divisional segment margin is $45,100. What is the amount of the common fixed expense not traceable to the individual divisions? |
$91,000
$113,300
$56,500
$124,700
17.
Koen Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $40,000 for Division A. Division B had a contribution margin ratio of 30% and its sales were $257,000. Net operating income for the company was $36,300 and traceable fixed expenses were $59,900. Koen Corporation's common fixed expenses were: |
$20,900
$59,900
$80,800
$117,100
18.
Insider Corporation has two divisions, J and K. During March, the contribution margin in Division J was $33,000. The contribution margin ratio in Division K was 40%, its sales were $128,000, and its segment margin was $35,000. The common fixed expenses in the company were $43,000, and the company's net operating income was $19,500. The segment margin for Division J was: |
$27,500
$35,000
$8,000
$62,500
19.
Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: |
Selling price | $104 |
Units in beginning inventory | 0 |
Units produced | 8,850 |
Units sold | 8,450 |
Units in ending inventory | 400 |
Variable costs per unit: | |
Direct materials | $16 |
Direct labor | $58 |
Variable manufacturing overhead | $4 |
Variable selling and administrative | $8 |
Fixed costs: | |
Fixed manufacturing overhead | $132,750 |
Fixed selling and administrative | $8,600 |
What is the net operating income for the month under variable costing?
$10,750
$(20,450)
$16,750
$6,000
20.
Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: |
Selling price | $124 |
Units in beginning inventory | 0 |
Units produced | 9,100 |
Units sold | 8,700 |
Units in ending inventory | 400 |
Variable costs per unit: | |
Direct materials | $21 |
Direct labor | $63 |
Variable manufacturing overhead | $9 |
Variable selling and administrative | $13 |
Fixed costs: | |
Fixed manufacturing overhead | $136,500 |
Fixed selling and administrative | $9,100 |
What is the net operating income for the month under absorption costing?
$26,200
$11,000
$17,000
$6,000
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