158) Plummer Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
44
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
9
Direct labor
$
6
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
63,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
66,000
Year 1
Year 2
Units in beginning inventory
0
2,000
Units produced
9,000
7,000
Units sold
7,000
8,000
Units in ending inventory
2,000
1,0000
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
Direct materials
Direct labor
Variable manufacturing overhead
Variable costing unit product cost
19
182
159) Plummer Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
44
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
9
Direct labor
$
6
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
63,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
66,000
Year 1
Year 2
Units in beginning inventory
0
2,000
Units produced
9,000
7,000
Units sold
7,000
8,000
Units in ending inventory
2,000
1,0000
The net operating income (loss) under absorption costing in Year 2 is closest to:
A) $31,000
B) $26,000
C) $132,000
D) $92,000
184
160) Plummer Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
44
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
9
Direct labor
$
6
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
63,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
66,000
Year 1
Year 2
Units in beginning inventory
0
2,000
Units produced
9,000
7,000
Units sold
7,000
8,000
Units in ending inventory
2,000
1,0000
The net operating income (loss) under variable costing in Year 2 is closest to:
A) $31,000
B) $160,000
C) $200,000
D) $26,000
161) Neef Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
84
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
12
Direct labor
$
5
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
61,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced
12,000
9,000
Units sold
9,000
10,000
Units in ending inventory
3,000
2,0000
The unit product cost under absorption costing in Year 1 is closest to:
A) $36.00
B) $21.00
C) $57.00
D) $62.00
Direct materials
$
12
Direct labor
5
Variable manufacturing overhead
4
produced)
36
Absorption costing unit product cost
$
57
162) Neef Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
84
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
12
Direct labor
$
5
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
61,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced
12,000
9,000
Units sold
9,000
10,000
Units in ending inventory
3,000
2,0000
The unit product cost under absorption costing in Year 2 is closest to:
A) $48.00
B) $21.00
C) $74.00
D) $69.00
Direct materials
$
12
Direct labor
5
Variable manufacturing overhead
4
Fixed manufacturing overhead ($432,000 ÷ 9,000 units produced)
48
Absorption costing unit product cost
$
69
163) Neef Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
84
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
12
Direct labor
$
5
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
61,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced
12,000
9,000
Units sold
9,000
10,000
Units in ending inventory
3,000
2,0000
The unit product cost under variable costing in Year 1 is closest to:
A) $21.00
B) $57.00
C) $62.00
D) $26.00
Direct materials
12
Direct labor
5
Variable manufacturing overhead
4
Variable costing unit product cost
21
189
164) Neef Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
84
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
12
Direct labor
$
5
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
61,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced
12,000
9,000
Units sold
9,000
10,000
Units in ending inventory
3,000
2,0000
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
191
165) Neef Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
84
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
12
Direct labor
$
5
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
61,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced
12,000
9,000
Units sold
9,000
10,000
Units in ending inventory
3,000
2,0000
The net operating income (loss) under absorption costing in Year 2 is closest to:
A) $87,000
B) $136,000
C) $75,000
D) $186,000
193
166) Neef Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
84
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
12
Direct labor
$
5
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
61,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced
12,000
9,000
Units sold
9,000
10,000
Units in ending inventory
3,000
2,0000
The net operating income (loss) under variable costing in Year 1 is closest to:
A) $522,000
B) $567,000
C) $137,000
D) $29,000
195
167) Neef Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
84
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
12
Direct labor
$
5
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
61,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced
12,000
9,000
Units sold
9,000
10,000
Units in ending inventory
3,000
2,0000
The net operating income (loss) under variable costing in Year 2 is closest to:
A) $630,000
B) $75,000
C) $87,000
D) $580,000
197
168) Neef Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
84
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
12
Direct labor
$
5
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
61,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced
12,000
9,000
Units sold
9,000
10,000
Units in ending inventory
3,000
2,0000
Which of the following statements is true for Year 1?
A) The amount of fixed manufacturing overhead released from inventories is $108,000
B) The amount of fixed manufacturing overhead deferred in inventories is $513,000
C) The amount of fixed manufacturing overhead released from inventories is $513,000
D) The amount of fixed manufacturing overhead deferred in inventories is $108,000
199
169) Neef Corporation has provided the following data for its two most recent years of
operation:
Selling price per unit
$
84
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
$
12
Direct labor
$
5
Variable manufacturing overhead
$
4
Fixed manufacturing overhead per year
$
432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
$
5
Fixed selling and administrative expense per year
$
61,000
Year 1
Year 2
Units in beginning inventory
0
3,000
Units produced
12,000
9,000
Units sold
9,000
10,000
Units in ending inventory
3,000
2,0000
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
