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Wolanski Corporation has provided the following data for its most recent year of operations: Wolanski Corporation has provided the following data for its most recent year of operations: The unit product cost under absorption costing is closest to: A) $21.00 B) $31.00 C) $35.00 D) $10.00 The unit product cost under absorption costing is closest to:


A) $21.00
B) $31.00
C) $35.00
D) $10.00

E) All of the above
F) B) and C)

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Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $580,000, variable expenses of $301,600, and traceable fixed expenses of $186,500. The Alpha Division has sales of $510,000, variable expenses of $178,500, and traceable fixed expenses of $222,100. The total amount of common fixed expenses not traceable to the individual divisions is $235,500. What is the company's net operating income?


A) $374,400
B) $201,300
C) $609,900
D) ($34,200)

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

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Baraban Corporation has provided the following data for its most recent year of operation: Baraban Corporation has provided the following data for its most recent year of operation: The net operating income (loss) under variable costing is closest to: A) $234,000 B) $9,000 C) ($4,000) D) $189,000 The net operating income (loss) under variable costing is closest to:


A) $234,000
B) $9,000
C) ($4,000)
D) $189,000

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

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Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the total period cost for the month under variable costing? A) $75,500 B) $43,200 C) $55,700 D) $32,300 What is the total period cost for the month under variable costing?


A) $75,500
B) $43,200
C) $55,700
D) $32,300

E) All of the above
F) None of the above

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Neef Corporation has provided the following data for its two most recent years of operation: Neef Corporation has provided the following data for its two most recent years of operation: The net operating income (loss) under absorption costing in Year 1 is closest to: A) $137,000 B) $198,000 C) $29,000 D) $243,000 The net operating income (loss) under absorption costing in Year 1 is closest to:


A) $137,000
B) $198,000
C) $29,000
D) $243,000

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

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A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the variable costing unit product cost for the month? A) $59 per unit B) $83 per unit C) $87 per unit D) $55 per unit What is the variable costing unit product cost for the month?


A) $59 per unit
B) $83 per unit
C) $87 per unit
D) $55 per unit

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

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Assuming that direct labor is a variable cost, the primary difference between the absorption and variable costing is that:


A) variable costing treats only direct materials and direct labor as product cost while absorption costing treats direct materials, direct labor, and the variable portion of manufacturing overhead as product costs.
B) variable costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs while absorption costing treats only direct materials, direct labor, and the variable portion of manufacturing overhead as product costs.
C) variable costing treats only direct materials, direct labor, the variable portion of manufacturing overhead, and the variable portion of selling and administrative expenses as product cost while absorption costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs.
D) variable costing treats only direct materials, direct labor, and the variable portion of manufacturing overhead as product costs while absorption costing treats direct materials, direct labor, the variable portion of manufacturing overhead, and an allocated portion of fixed manufacturing overhead as product costs.

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

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When using segmented income statements, the dollar sales for a company to break even equals the traceable fixed expenses divided by the overall CM ratio.

A) True
B) False

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Neef Corporation has provided the following data for its two most recent years of operation: Neef Corporation has provided the following data for its two most recent years of operation: Which of the following statements is true for Year 2? A) The amount of fixed manufacturing overhead released from inventories is $12,000 B) The amount of fixed manufacturing overhead released from inventories is $654,000 C) The amount of fixed manufacturing overhead deferred in inventories is $12,000 D) The amount of fixed manufacturing overhead deferred in inventories is $654,000 Which of the following statements is true for Year 2?


A) The amount of fixed manufacturing overhead released from inventories is $12,000
B) The amount of fixed manufacturing overhead released from inventories is $654,000
C) The amount of fixed manufacturing overhead deferred in inventories is $12,000
D) The amount of fixed manufacturing overhead deferred in inventories is $654,000

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

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Fowler Corporation manufactures a single product. Operating data for the company and its absorption costing income statements for the last two years are presented below: Fowler Corporation manufactures a single product. Operating data for the company and its absorption costing income statements for the last two years are presented below: Variable manufacturing costs are $6 per unit. Fixed manufacturing overhead totals $72,000 in each year. This fixed manufacturing overhead is applied at the rate of $4 per unit. Variable selling and administrative expenses are $2 per unit sold.Required:a. Compute the unit product cost in each year under variable costing.b. Prepare new income statements for each year using variable costing.c. Reconcile the absorption costing and variable costing net operating income for each year. Variable manufacturing costs are $6 per unit. Fixed manufacturing overhead totals $72,000 in each year. This fixed manufacturing overhead is applied at the rate of $4 per unit. Variable selling and administrative expenses are $2 per unit sold.Required:a. Compute the unit product cost in each year under variable costing.b. Prepare new income statements for each year using variable costing.c. Reconcile the absorption costing and variable costing net operating income for each year.

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a.The unit product cost under variable c...

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A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the absorption costing unit product cost for the month? A) $124 per unit B) $132 per unit C) $113 per unit D) $143 per unit What is the absorption costing unit product cost for the month?


A) $124 per unit
B) $132 per unit
C) $113 per unit
D) $143 per unit

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

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Wolanski Corporation has provided the following data for its most recent year of operations: Wolanski Corporation has provided the following data for its most recent year of operations: The unit product cost under variable costing is closest to: A) $21.00 B) $31.00 C) $35.00 D) $25.00 The unit product cost under variable costing is closest to:


A) $21.00
B) $31.00
C) $35.00
D) $25.00

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

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Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $38,300 and the Export Products Division's divisional segment margin is $90,700. The total amount of common fixed expenses not traceable to the individual divisions is $102,000. What is the company's net operating income (loss) ?


A) $231,000
B) $129,000
C) $27,000
D) ($129,000)

E) All of the above
F) B) and C)

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Letcher Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Letcher 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 56,000 units and sold 54,000 units. The company's only product is sold for $227 per unit.The company is considering using either super-variable costing or an absorption costing system that assigns $11 of direct labor cost and $62 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 $146,000. B) Absorption costing net operating income exceeds super-variable costing net operating income by $124,000. C) Super-variable costing net operating income exceeds absorption costing net operating income by $124,000. D) Absorption costing net operating income exceeds super-variable costing net operating income by $146,000. 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 56,000 units and sold 54,000 units. The company's only product is sold for $227 per unit.The company is considering using either super-variable costing or an absorption costing system that assigns $11 of direct labor cost and $62 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 $146,000.
B) Absorption costing net operating income exceeds super-variable costing net operating income by $124,000.
C) Super-variable costing net operating income exceeds absorption costing net operating income by $124,000.
D) Absorption costing net operating income exceeds super-variable costing net operating income by $146,000.

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

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Plummer Corporation has provided the following data for its two most recent years of operation: Plummer Corporation has provided the following data for its two most recent years of operation: The unit product cost under variable costing in Year 1 is closest to: A) $19.00 B) $24.00 C) $26.00 D) $31.00 The unit product cost under variable costing in Year 1 is closest to:


A) $19.00
B) $24.00
C) $26.00
D) $31.00

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

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Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the net operating income for the month under variable costing? A) $12,000 B) $(20,400) C) $5,600 D) $6,400 What is the net operating income for the month under variable costing?


A) $12,000
B) $(20,400)
C) $5,600
D) $6,400

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

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Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: The total gross margin for the month under the absorption costing approach is: A) $73,920 B) $95,040 C) $73,920. D) $147,840 The total gross margin for the month under the absorption costing approach is:


A) $73,920
B) $95,040
C) $73,920.
D) $147,840

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

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Stoneberger Corporation produces a single product and has the following cost structure: Stoneberger Corporation produces a single product and has the following cost structure: The variable costing unit product cost is: A) $128 per unit B) $125 per unit C) $202 per unit D) $131 per unit The variable costing unit product cost is:


A) $128 per unit
B) $125 per unit
C) $202 per unit
D) $131 per unit

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

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Eyestone Corporation has two divisions, A and B. The following data pertain to operations in October: Eyestone Corporation has two divisions, A and B. The following data pertain to operations in October: If common fixed expenses were $17,000, total fixed expenses were: A) $48,000 B) $13,000 C) $31,000 D) $53,000 If common fixed expenses were $17,000, total fixed expenses were:


A) $48,000
B) $13,000
C) $31,000
D) $53,000

E) All of the above
F) B) and C)

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A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the total period cost for the month under variable costing? A) $260,700 B) $157,500 C) $380,700 D) $418,200 What is the total period cost for the month under variable costing?


A) $260,700
B) $157,500
C) $380,700
D) $418,200

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

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