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First question is related to 2 and 3 Fixed manufacturing overhead is included in product costs under : Option A Option B Option C Option
First question is related to 2 and 3
- Fixed manufacturing overhead is included in product costs under:
-
- Option A
- Option B
- Option C
- Option D
- Evans Company produces a single product. During the most recent year, the company had a net operating income of $90,000 using absorption costing and $84,000 using variable costing. The fixed overhead application rate was $6 per unit. There were no beginning inventories. If 22,000 were produced last year, then sales for last year were:
- 15,000 units
- 21,000 units
- 23,000 units
- 28,000 unit
- A national retail company has segmented its income statement by sales
territories. If each sales territory statement is further segmented by individual stores, which of the following will most likely occur?
-
- some common fixed expenses in the sales territory segmented statement will become traceable fixed expenses in the individual store segmented statement.
- Some traceable fixed expenses in the sales territory segmented statement will become fixed expenses in the individual store segmented statement
- The sum total of the individual stores segment margins in each sales territory will be equal to the segment margin for the sales territory
- The sum total of the sales territory segment margins will equal the total net operating income for the entire company.
- Under variable costing, fixed manufacturing overhead is:
- Carried in a liability account
- Carried in an asset account
- Ignored
- Expensed as a period cost
- If a cost is a common cost of the segments on a segmented income statement, the cost should:
- Be allocated to the segments on the basis of segment sales
- Not be allocated to the segments
- Excluded from the income statement
- Treated as a product cost rather than as a period cost
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