Kelsay Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (9,000 units)	$	540,000
Variable expenses		405,000
Contribution margin		135,000
Fixed expenses		130,500
Net operating income	$	4,500

The contribution margin per unit is closest to:

Multiple Choice

• $15.00

• $0.50

• $45.00

• $60.00

Maruca Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (9,000 units)	$	270,000
Variable expenses		175,500
Contribution margin		94,500
Fixed expenses		86,100
Net operating income	$	8,400

The margin of safety in dollars is closest to:

Multiple Choice

• $86,100

• $8,400

• $24,000

• $94,500

Which of the following will usually be found on an income statement prepared using absorption costing?

	Contribution Margin	Gross Margin
A)	Yes	Yes
B)	Yes	No
C)	No	Yes
D)	No	No

Multiple Choice

• Choice A

• Choice B

• Choice C

• Choice D

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price	$	121
Units in beginning inventory		0
Units produced		6,000
Units sold		5,600
Units in ending inventory		400
Variable costs per unit:
Direct materials	$	38
Direct labor	$	53
Variable manufacturing overhead	$	3
Variable selling and administrative expense	$	11
Fixed costs:
Fixed manufacturing overhead	$	60,000
Fixed selling and administrative expense	$	28,000

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

Multiple Choice

• $149,600

• $60,000

• $88,000

• $89,600

Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced		8,000
Variable costs per unit:
Direct materials	$	37
Direct labor	$	56
Variable manufacturing overhead	$	4
Variable selling and administrative expense	$	2
Fixed costs:
Fixed manufacturing overhead	$	312,000
Fixed selling and administrative expense	$	448,000

There were no beginning or ending inventories. The absorption costing unit product cost was:

Multiple Choice

• $93 per unit

• $97 per unit

• $136 per unit

• $194 per unit

Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$	126
Units in beginning inventory		0
Units produced		1,900
Units sold		1,800
Units in ending inventory		100

Variable costs per unit:
Direct materials	$	49
Direct labor	$	28
Variable manufacturing overhead	$	5
Variable selling and administrative expense	$	11
Fixed costs:
Fixed manufacturing overhead	$	32,300
Fixed selling and administrative expense	$	23,400

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

Multiple Choice

• $75,500

• $43,200

• $55,700

• $32,300

Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$	126
Units in beginning inventory		0
Units produced		1,900
Units sold		1,800
Units in ending inventory		100

Variable costs per unit:
Direct materials	$	49
Direct labor	$	28
Variable manufacturing overhead	$	5
Variable selling and administrative expense	$	11
Fixed costs:
Fixed manufacturing overhead	$	32,300
Fixed selling and administrative expense	$	23,400

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

Multiple Choice

• $5,400

• $1,700

• $(4,500)

• $3,700

Scheney Company uses the weighted-average method in its process costing system. The company's work in process inventory on March 31 consisted of 26,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 80% complete with respect to labor and overhead. If the cost per equivalent unit for March was $3.00 for materials and $4.90 for labor and overhead, the total cost in the March 31 work in process inventory was:

Multiple Choice

• $164,320

• $103,480

• $179,920

• $205,400