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56. A manufacturing company that produces a single product has provided the following data
concerning its most recent month of operations:
Selling price $126
Units in beginning inventory 0
Units produced 3,100
Units sold 3,000
Units in ending inventory 100
Variable costs per unit:
Direct materials $22
Direct labor $43
Variable manufacturing overhead $3
Variable selling and administrative $10
Fixed costs:
Fixed manufacturing overhead $89,900
Fixed selling and administrative $42,000
What is the net operating income for the month under variable costing?
57. A manufacturing company that produces a single product has provided the following data
concerning its most recent month of operations:
Selling price $120
Units in beginning inventory 0
Units produced 7,100
Units sold 6,800
Units in ending inventory 300
Variable costs per unit:
Direct materials $42
Direct labor $33
Variable manufacturing overhead $5
Variable selling and administrative $11
Fixed costs:
Fixed manufacturing overhead $127,800
Fixed selling and administrative $68,000
The total gross margin for the month under absorption costing is:
58. The following data pertain to last year's operations at Tredder Corporation, a company
that produces a single product:
Units in beginning inventory 0
Units produced 20,000
Units sold 19,000
Selling price per unit $100.00
Variable costs per unit:
Direct materials $12.00
Direct labor $25.00
Variable manufacturing overhead $3.00
Variable selling and administrative $2.00
Fixed expenses per year:
Fixed manufacturing overhead $500,000
Fixed selling and administrative $600,000
What was the absorption costing net operating income last year?
59. Craft Corporation produces a single product. Last year, the company had a net operating
income of $80,000 using absorption costing and $74,500 using variable costing. The fixed
manufacturing overhead cost was $5 per unit. There were no beginning inventories. If 21,500
units were produced last year, then sales last year were:
60. Rede Inc. manufactures a single product. Variable costing net operating income was
$63,800 last year and its inventory decreased by 300 units. Fixed manufacturing overhead cost
was $4 per unit for both units in beginning and in ending inventory. What was the absorption
costing net operating income last year?
61. Yuvil Corporation produces a single product. At the end of the company's first year of
operations, 1,000 units of inventory remained on hand. Its variable manufacturing overhead cost
is $45 per unit and its fixed manufacturing overhead cost is $10 per unit. Yuvil's absorption
costing net operating income would be higher than its variable costing net operating income by:
62. A company that produces a single product had a net operating income of $75,000 using
variable costing and a net operating income of $95,000 using absorption costing. Total fixed
manufacturing overhead was $50,000 and production was 10,000 units both this year and last
year. Last year was the first year of operations. Between the beginning and the end of the year,
the inventory level:
63. Last year, Walters Corporation's variable costing net operating income was $60,800 and
its inventory decreased by 200 units. Fixed manufacturing overhead cost was $3 per unit for both
units in beginning and in ending inventory. What was the absorption costing net operating income
last year?
64. Sechrest Corporation manufactures a single product. Last year, the company's variable
costing net operating income was $80,500. Fixed manufacturing overhead costs released from
inventory under absorption costing amounted to $18,400. What was the absorption costing net
operating income last year?
65. Last year, Rassel Corporation's variable costing net operating income was $63,200. Fixed
manufacturing overhead costs deferred in inventory under absorption costing amounted to
$31,900. What was the absorption costing net operating income last year?
66. Swifton Corporation produces a single product. Last year, the company had net operating
income of $40,000 using variable costing. Beginning and ending inventories were 22,000 and
27,000 units, respectively. If the fixed manufacturing overhead cost was $3 per unit both last year
and this year, what was the income using absorption costing?
67. Denner Corporation has two divisions, A and B. The following data pertain to operations
in October:
Division A Division B
Sales $90,000 $150,000
Variable expenses as a percentage of sales 70% 60%
Segment margin $2,000 $23,000
If common fixed expenses were $31,000, total fixed expenses were:
68. Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The
corporation's net operating income is $10,700. The BAJ Division's divisional segment margin is
$76,100 and the CBB Division's divisional segment margin is $42,300. What is the amount of the
common fixed expense not traceable to the individual divisions?
6-58
69. Koen Corporation has two divisions: Division A and Division B. Last month, the company
reported a contribution margin of $50,000 for Division A. Division B had a contribution margin
ratio of 30% and its sales were $250,000. Net operating income for the company was $30,000 and
traceable fixed expenses were $50,000. Koen Corporation's common fixed expenses were:
70. Quinnett Corporation has two divisions: the Export Products Division and the Business
Products Division. The Export Products Division's divisional segment margin is $34,300 and the
Business Products Division's divisional segment margin is $86,700. The total amount of common
fixed expenses not traceable to the individual divisions is $95,600. What is the company's net
operating income?
