Question 1:

Meltable chose

1- All of the following are expensed under variable costing except:

Select one:

a. variable selling and administrative costs and fixed selling and administrative costs.

b. fixed selling and administrative costs. c. variable selling and administrative costs. d. variable manufacturing overhead. e. fixed manufacturing overhead.

2- Al-Ain Inc. has computed the following unit costs for the year just ended:

Direct material used $15

Direct labor 21

Variable manufacturing overhead 28

Fixed manufacturing overhead 32

Variable selling and administrative cost 13

Fixed selling and administrative cost 18

Under absorption costing, the product cost per unit will be:

Select one: a. $127 b. $77 c. Other answer d. $64 e. $96

3- Drops Corp., which began business at the start of the current year, had the following data: Planned and actual production: 20,000 units Sales: 17,000 units at $15 per unit Production costs: Variable: $4 per unit Fixed: $130,000 Selling and administrative costs: Variable: $1 per unit Fixed: $32,000

The net income that the company would disclose on an absorption-costing is:

Select one:

a. $138,000. b. $44,500. c. $76,500. d. $95,500. e. $27,500

4- The underlying difference between absorption costing and variable costing lies in the treatment of:

Select one:

a. variable selling and administrative expenses. b. fixed manufacturing overhead. c. variable manufacturing overhead. d. fixed selling and administrative expenses. e. direct labor.

5- Abraj Inc. has computed the following unit costs for the year just ended:

Direct material used $14

Direct labor 20

Variable manufacturing overhead 27

Fixed manufacturing overhead 31

Variable selling and administrative cost 12

Fixed selling and administrative cost 19

Under variable costing, the product cost per unit will be: Select one:

a. $123

b. 61

c. $104

d. $34

e. $92