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Labadie Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Labadie Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit. Assume that the company uses a variable costing system that assigns $23 of direct labor cost to each unit that is produced. The unit product cost under this costing system is: A) $181 per unit B) $117 per unit C) $94 per unit D) $215 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit. Assume that the company uses a variable costing system that assigns $23 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:


A) $181 per unit
B) $117 per unit
C) $94 per unit
D) $215 per unit

E) A) and B)
F) A) and C)

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B

Grandin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Grandin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 44,000 units and sold 41,000 units. The company's only product is sold for $242 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $24 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year? A) Super-variable costing net operating income exceeds variable costing net operating income by $72,000. B) Variable costing net operating income exceeds super-variable costing net operating income by $156,000. C) Super-variable costing net operating income exceeds variable costing net operating income by $156,000. D) Variable costing net operating income exceeds super-variable costing net operating income by $72,000. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 44,000 units and sold 41,000 units. The company's only product is sold for $242 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $24 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?


A) Super-variable costing net operating income exceeds variable costing net operating income by $72,000.
B) Variable costing net operating income exceeds super-variable costing net operating income by $156,000.
C) Super-variable costing net operating income exceeds variable costing net operating income by $156,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $72,000.

E) A) and D)
F) B) and D)

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Leheny Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Leheny Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit. Assume that the company uses a variable costing system that assigns $21 of direct labor cost to each unit that is produced. The net operating income under this costing system is: A) $1,400,000 B) $1,005,000 C) $1,110,000 D) $580,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit. Assume that the company uses a variable costing system that assigns $21 of direct labor cost to each unit that is produced. The net operating income under this costing system is:


A) $1,400,000
B) $1,005,000
C) $1,110,000
D) $580,000

E) A) and B)
F) A) and C)

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Drucker Corporation manufactures and sells one product. In the company's first year of operations, the variable cost consisted solely of direct materials of $84 per unit. The annual fixed costs were $288,000 of direct labor cost, $1,728,000 of fixed manufacturing overhead expense, and $782,000 of fixed selling and administrative expense. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 24,000 units and sold 17,000 units. The company's only product is sold for $249 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year. b. Assume the company uses super-variable costing. Prepare an income statement for the year.

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a. Under super-variable costin...

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Shelko Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Shelko Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 42,000 units and sold 37,000 units. The company's only product is sold for $272 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses an absorption costing system that assigns $28 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year. c. Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 42,000 units and sold 37,000 units. The company's only product is sold for $272 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses an absorption costing system that assigns $28 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year. c. Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes.

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a. Under super-variable costing, the uni...

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Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit. Assume that the company uses an absorption costing system that assigns $10 of direct labor cost and $67 of fixed manufacturing overhead to each unit that is produced. The unit product cost under this costing system is: A) $103 per unit B) $214 per unit C) $170 per unit D) $93 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit. Assume that the company uses an absorption costing system that assigns $10 of direct labor cost and $67 of fixed manufacturing overhead to each unit that is produced. The unit product cost under this costing system is:


A) $103 per unit
B) $214 per unit
C) $170 per unit
D) $93 per unit

E) A) and B)
F) B) and D)

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Guillaume Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Guillaume Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 46,000 units and sold 41,000 units. The company's only product is sold for $260 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses a variable costing system that assigns $28 of direct labor cost to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 46,000 units and sold 41,000 units. The company's only product is sold for $260 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses a variable costing system that assigns $28 of direct labor cost to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.

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a. Under super-variable costin...

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Leheny Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Leheny Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit. The net operating income for the year under super-variable costing is: A) $1,400,000 B) $1,110,000 C) $1,005,000 D) $580,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit. The net operating income for the year under super-variable costing is:


A) $1,400,000
B) $1,110,000
C) $1,005,000
D) $580,000

E) A) and D)
F) None of the above

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Stubenrauch Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Stubenrauch Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 38,000 units and sold 32,000 units. The company's only product is sold for $240 per unit. The net operating income for the year under super-variable costing is: A) $912,000 B) $1,248,000 C) $282,000 D) $828,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 38,000 units and sold 32,000 units. The company's only product is sold for $240 per unit. The net operating income for the year under super-variable costing is:


A) $912,000
B) $1,248,000
C) $282,000
D) $828,000

E) None of the above
F) A) and C)

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D

Nurre Corporation manufactures and sells one product. In the company's first year of operations, the variable cost consisted solely of direct materials of $88 per unit. The annual fixed costs were $729,000 of direct labor cost, $1,917,000 of fixed manufacturing overhead expense, and $814,000 of fixed selling and administrative expense. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 27,000 units and sold 22,000 units. The company's only product is sold for $247 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses an absorption costing system that assigns $27 of direct labor cost and $71 of fixed manufacturing overhead to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.

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a. Under super-variable costin...

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Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit. The unit product cost under super-variable costing is: A) $180 per unit B) $105 per unit C) $94 per unit D) $210 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit. The unit product cost under super-variable costing is:


A) $180 per unit
B) $105 per unit
C) $94 per unit
D) $210 per unit

E) None of the above
F) A) and B)

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Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit. Assume that the company uses a variable costing system that assigns $17 of direct labor cost to each unit that is produced. The unit product cost under this costing system is: A) $114 per unit B) $191 per unit C) $97 per unit D) $224 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit. Assume that the company uses a variable costing system that assigns $17 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:


A) $114 per unit
B) $191 per unit
C) $97 per unit
D) $224 per unit

E) None of the above
F) B) and C)

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Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit. Assume that the company uses a variable costing system that assigns $11 of direct labor cost to each unit that is produced. The unit product cost under this costing system is: A) $105 per unit B) $180 per unit C) $94 per unit D) $210 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit. Assume that the company uses a variable costing system that assigns $11 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:


A) $105 per unit
B) $180 per unit
C) $94 per unit
D) $210 per unit

E) B) and C)
F) A) and D)

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Michelman Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Michelman Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 34,000 units and sold 31,000 units. The company's only product is sold for $254 per unit. The company is considering using either super-variable costing or an absorption costing system that assigns $28 of direct labor cost and $75 of fixed manufacturing overhead to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year? A) Absorption costing net operating income exceeds super-variable costing net operating income by $309,000. B) Absorption costing net operating income exceeds super-variable costing net operating income by $225,000. C) Super-variable costing net operating income exceeds absorption costing net operating income by $309,000. D) Super-variable costing net operating income exceeds absorption costing net operating income by $225,000. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 34,000 units and sold 31,000 units. The company's only product is sold for $254 per unit. The company is considering using either super-variable costing or an absorption costing system that assigns $28 of direct labor cost and $75 of fixed manufacturing overhead to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?


A) Absorption costing net operating income exceeds super-variable costing net operating income by $309,000.
B) Absorption costing net operating income exceeds super-variable costing net operating income by $225,000.
C) Super-variable costing net operating income exceeds absorption costing net operating income by $309,000.
D) Super-variable costing net operating income exceeds absorption costing net operating income by $225,000.

E) B) and C)
F) A) and D)

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Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit. Assume that the company uses a variable costing system that assigns $10 of direct labor cost to each unit that is produced. The unit product cost under this costing system is: A) $170 per unit B) $214 per unit C) $93 per unit D) $103 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit. Assume that the company uses a variable costing system that assigns $10 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:


A) $170 per unit
B) $214 per unit
C) $93 per unit
D) $103 per unit

E) A) and C)
F) None of the above

Correct Answer

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Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit. The company is considering using either super-variable costing or an absorption costing system that assigns $10 of direct labor cost and $67 of fixed manufacturing overhead to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year? A) Super-variable costing net operating income exceeds absorption costing net operating income by $1,000. B) Super-variable costing net operating income exceeds absorption costing net operating income by $77,000. C) Absorption costing net operating income exceeds super-variable costing net operating income by $77,000. D) Absorption costing net operating income exceeds super-variable costing net operating income by $1,000. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit. The company is considering using either super-variable costing or an absorption costing system that assigns $10 of direct labor cost and $67 of fixed manufacturing overhead to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?


A) Super-variable costing net operating income exceeds absorption costing net operating income by $1,000.
B) Super-variable costing net operating income exceeds absorption costing net operating income by $77,000.
C) Absorption costing net operating income exceeds super-variable costing net operating income by $77,000.
D) Absorption costing net operating income exceeds super-variable costing net operating income by $1,000.

E) A) and B)
F) A) and C)

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Marcelin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Marcelin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $22 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year? A) Variable costing net operating income exceeds super-variable costing net operating income by $110,000. B) Super-variable costing net operating income exceeds variable costing net operating income by $385,000. C) Super-variable costing net operating income exceeds variable costing net operating income by $110,000. D) Variable costing net operating income exceeds super-variable costing net operating income by $385,000. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $22 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?


A) Variable costing net operating income exceeds super-variable costing net operating income by $110,000.
B) Super-variable costing net operating income exceeds variable costing net operating income by $385,000.
C) Super-variable costing net operating income exceeds variable costing net operating income by $110,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $385,000.

E) A) and B)
F) A) and C)

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A

Marcelin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Marcelin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit. The unit product cost under super-variable costing is: A) $191 per unit B) $233 per unit C) $114 per unit D) $92 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit. The unit product cost under super-variable costing is:


A) $191 per unit
B) $233 per unit
C) $114 per unit
D) $92 per unit

E) A) and B)
F) None of the above

Correct Answer

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Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $10 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year? A) Variable costing net operating income exceeds super-variable costing net operating income by $10,000. B) Super-variable costing net operating income exceeds variable costing net operating income by $10,000. C) Super-variable costing net operating income exceeds variable costing net operating income by $67,000. D) Variable costing net operating income exceeds super-variable costing net operating income by $67,000. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $10 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?


A) Variable costing net operating income exceeds super-variable costing net operating income by $10,000.
B) Super-variable costing net operating income exceeds variable costing net operating income by $10,000.
C) Super-variable costing net operating income exceeds variable costing net operating income by $67,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $67,000.

E) A) and D)
F) All of the above

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Woodall Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Woodall Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 46,000 units and sold 44,000 units. The company's only product is sold for $235 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses a variable costing system that assigns $14 of direct labor cost to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year. c. Assume that the company uses an absorption costing system that assigns $14 of direct labor cost and $56 of fixed manufacturing overhead to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year. d. Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes. e. Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 46,000 units and sold 44,000 units. The company's only product is sold for $235 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses a variable costing system that assigns $14 of direct labor cost to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year. c. Assume that the company uses an absorption costing system that assigns $14 of direct labor cost and $56 of fixed manufacturing overhead to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year. d. Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes. e. Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes.

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a. Under super-variable costing, the uni...

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