6-219
6-220
57.
A manufacturing company that produces a single product has provided the following data
concerning its most recent month of operations:
$120
0
7,100
6,800
300
$42
$33
$5
$11
$127,800
$68,000
Direct materials
Direct labor
Variable manufacturing overhead
5
The total gross margin for the month under absorption costing is:
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6-222
58.
The following data pertain to last year’s operations at Tredder Corporation, a company
that produces a single product:
0
20,000
19,000
$100.00
$12.00
$25.00
$3.00
$2.00
$500,000
$600,000
Direct materials
Direct labor
What was the absorption costing net operating income last year?
6-223
6-224
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:
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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?
6-226
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:
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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:
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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?
6-229
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?
6-230
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?
6-231
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?
6-232
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
Division A
Division B
Sales
$90,000
$150,000
Variable expenses
Contribution margin
Traceable fixed expenses
Segment margin
Common fixed expenses
Net operating income
If common fixed expenses were $31,000, total fixed expenses were:
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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?
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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:
6-236
6-237
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?
6-238