144. During its first year of operations, Carlos Manufacturing Corporation incurred the
following costs to produce 8,000 units of its only product:
Direct materials $7 per unit
Direct labor $3 per unit
Variable manufacturing overhead $18 per unit
Fixed manufacturing overhead $450,000 in total
The company also incurred the following costs in selling 7,500 units of product during its first
year:
Variable selling and administrative $2 per unit
Fixed selling and administrative $60,000 in total
Assume that direct labor is a variable cost.
If Carlos’ absorption costing net operating income for this first year is $118,125, what would its
variable costing net operating income be for this first year?
145. The following data were provided by Rider, Inc, which produces a single product:
Units in beginning inventory 0
Units produced 5,000
Units sold 4,500
Variable costs per unit:
Manufacturing $10
Selling and administrative $4
Fixed costs, in total:
Manufacturing $15,000
Selling and administrative $10,000
Under variable costing, the unit product cost is:
146. The following data were provided by Rider, Inc, which produces a single product:
Units in beginning inventory 0
Units produced 5,000
Units sold 4,500
Variable costs per unit:
Manufacturing $10
Selling and administrative $4
Fixed costs, in total:
Manufacturing $15,000
Selling and administrative $10,000
Under absorption costing, the unit product cost is:
147. The following data were provided by Rider, Inc, which produces a single product:
Units in beginning inventory 0
Units produced 5,000
Units sold 4,500
Variable costs per unit:
Manufacturing $10
Selling and administrative $4
Fixed costs, in total:
Manufacturing $15,000
Selling and administrative $10,000
For the year in question, one would expect the net operating income under absorption costing to
be:
148. Chown Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price $110
Units in beginning inventory 0
Units produced 8,000
Units sold 7,800
Units in ending inventory 200
Variable costs per unit:
Direct materials $22
Direct labor $31
Variable manufacturing overhead $3
Variable selling and administrative $4
Fixed costs:
Fixed manufacturing overhead $248,000
Fixed selling and administrative $140,400
The total contribution margin for the month under variable costing is:
149. Chown Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price $110
Units in beginning inventory 0
Units produced 8,000
Units sold 7,800
Units in ending inventory 200
Variable costs per unit:
Direct materials $22
Direct labor $31
Variable manufacturing overhead $3
Variable selling and administrative $4
Fixed costs:
Fixed manufacturing overhead $248,000
Fixed selling and administrative $140,400
The total gross margin for the month under the absorption costing approach is:
150. Kosco Corporation produces a single product. The company’s absorption costing income
statement for March follows:
Kosco Corporation
Income Statement
For the Month Ended March 31
Sales (2,400 units) $48,000
Cost of goods sold 24,000
Gross margin 24,000
Selling and administrative expenses:
Fixed $7,200
Variable 9,600 16,800
Net operating income $7,200
During March, the company’s variable production costs were $8 per unit and its fixed
manufacturing overhead totaled $5,000.
Net operating income under variable costing for March would be:
151. Kosco Corporation produces a single product. The company’s absorption costing income
statement for March follows:
Kosco Corporation
Income Statement
For the Month Ended March 31
Sales (2,400 units) $48,000
Cost of goods sold 24,000
Gross margin 24,000
Selling and administrative expenses:
Fixed $7,200
Variable 9,600 16,800
Net operating income $7,200
During March, the company’s variable production costs were $8 per unit and its fixed
manufacturing overhead totaled $5,000.
The contribution margin per unit during March was:
152. Kosco Corporation produces a single product. The company’s absorption costing income
statement for March follows:
Kosco Corporation
Income Statement
For the Month Ended March 31
Sales (2,400 units) $48,000
Cost of goods sold 24,000
Gross margin 24,000
Selling and administrative expenses:
Fixed $7,200
Variable 9,600 16,800
Net operating income $7,200
During March, the company’s variable production costs were $8 per unit and its fixed
manufacturing overhead totaled $5,000.
The break-even point in units for the month under variable costing would be:
153. Schweinert Corporation manufactures a single product. The following data pertain to the
company’s operations over the last two years:
Variable costing net operating income, last year $58,000
Variable costing net operating income, this year $64,000
Fixed manufacturing overhead costs released from inventory under absorption costing, last year
$11,000
Fixed manufacturing overhead costs deferred in inventory under absorption costing, this year $20,000
What was the absorption costing net operating income last year?
154. Schweinert Corporation manufactures a single product. The following data pertain to the
company’s operations over the last two years:
Variable costing net operating income, last year $58,000
Variable costing net operating income, this year $64,000
Fixed manufacturing overhead costs released from inventory under absorption costing, last year
$11,000
Fixed manufacturing overhead costs deferred in inventory under absorption costing, this year $20,000
What was the absorption costing net operating income this year?
155. Lasorsa Corporation manufactures a single product. Variable costing net operating
income last year was $86,000 and this year was $98,000. Last year, $4,000 in fixed manufacturing
overhead costs were released from inventory under absorption costing. This year, $27,000 in
fixed manufacturing overhead costs were deferred in inventory under absorption costing.
What was the absorption costing net operating income last year?
156. Lasorsa Corporation manufactures a single product. Variable costing net operating
income last year was $86,000 and this year was $98,000. Last year, $4,000 in fixed manufacturing
overhead costs were released from inventory under absorption costing. This year, $27,000 in
fixed manufacturing overhead costs were deferred in inventory under absorption costing.
What was the absorption costing net operating income this year?
157. Romasanta Corporation manufactures a single product. The following data pertain to the
company’s operations over the last two years:
Variable costing net operating income, last year $53,600
Variable costing net operating income, this year $58,600
Beginning inventory, last year 0 units
Ending inventory, last year 1,200 units
Ending in inventory, this year 3,500 units
Fixed manufacturing overhead cost per unit this year and last year $3 per unit
What was the absorption costing net operating income last year?