6-259
84.
Kadle Corporation has two divisions: Division L and Division Q. Data from the most recent
month appear below:
Total
Company
Division
L
Division
Q
Sales
$557,000
$323,000
$234,000
Variable
expenses
179,690
100,130
79,560
Contribution
margin
377,310
222,870
154,440
Traceable fixed
expenses
271,000
170,000
101,000
Segment
margin
106,310
$52,870
$53,440
Common fixed
expenses
72,410
Net operating
income
$33,900
The break-even in sales dollars for Division Q is closest to:
85.
Bode Corporation has two divisions: East and West. Data from the most recent month
appear below:
East
West
Sales
$324,000
$149,000
Variable expenses
$93,960
$34,270
Traceable fixed expenses
$156,000
$90,000
The company’s common fixed expenses total $47,300. If the company operates at exactly
the break-even sales of the East Division and West Division, what would be the company’s
overall net operating income?
86.
Delvin Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$120
Units in beginning inventory
0
Units produced
1,800
Units sold
1,500
Units in ending inventory
300
Variable costs per unit:
Direct materials
$40
Direct labor
$42
Variable manufacturing overhead
$2
Variable selling and administrative
$9
Fixed costs:
Fixed manufacturing overhead
$7,200
Fixed selling and administrative
$28,500
What is the total period cost for the month under variable costing?
($9 per unit × 1,500 units sold)
Fixed manufacturing overhead
7,200
6-263
6-264
87.
Delvin Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$120
Units in beginning inventory
0
Units produced
1,800
Units sold
1,500
Units in ending inventory
300
Variable costs per unit:
Direct materials
$40
Direct labor
$42
Variable manufacturing overhead
$2
Variable selling and administrative
$9
Fixed costs:
Fixed manufacturing overhead
$7,200
Fixed selling and administrative
$28,500
Fixed selling and administrative
Total period cost absorption costing
What is the total period cost for the month under the absorption costing?
6-265
88.
Bateman Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$117
Units in beginning inventory
0
Units produced
4,700
Units sold
4,400
Units in ending inventory
300
Variable costs per unit:
Direct materials
$36
Direct labor
$38
Variable manufacturing overhead
$4
Variable selling and administrative
$11
Fixed costs:
Fixed manufacturing overhead
$89,300
Fixed selling and administrative
$26,400
What is the unit product cost for the month under variable costing?
Direct materials
Direct labor
Variable manufacturing overhead
6-267
89.
Bateman Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$117
Units in beginning inventory
0
Units produced
4,700
Units sold
4,400
Units in ending inventory
300
Variable costs per unit:
Direct materials
$36
Direct labor
$38
Variable manufacturing overhead
$4
Variable selling and administrative
$11
Fixed costs:
Fixed manufacturing overhead
$89,300
Fixed selling and administrative
$26,400
What is the unit product cost for the month under absorption costing?
Direct materials
Direct labor
Variable manufacturing overhead
6-269
6-270
90.
Hardee Inc., which produces a single product, has provided the following data for its most
recent month of operations:
Number of units produced
4,000
Variable costs per unit:
Direct materials
$13
Direct labor
$17
Variable manufacturing overhead
$3
Variable selling and administrative
expense
$2
Fixed costs:
Fixed manufacturing overhead
$280,000
Fixed selling and administrative
expense
$120,000
There were no beginning or ending inventories.
The unit product cost under absorption costing was:
Direct materials
Direct labor
Variable manufacturing overhead
3
Absorption costing unit product cost
6-271
91.
Hardee Inc., which produces a single product, has provided the following data for its most
recent month of operations:
Number of units produced
4,000
Variable costs per unit:
Direct materials
$13
Direct labor
$17
Variable manufacturing overhead
$3
Variable selling and administrative
expense
$2
Fixed costs:
Fixed manufacturing overhead
$280,000
Fixed selling and administrative
expense
$120,000
Direct materials
Direct labor
Variable manufacturing overhead
Variable costing unit product cost
There were no beginning or ending inventories.
The unit product cost under variable costing was:
6-272
6-273
92.
Hossack Corporation produces a single product and has the following cost structure:
Number of units produced each year
3,000
Variable costs per unit:
Direct materials
$17
Direct labor
$85
Variable manufacturing overhead
$1
Variable selling and administrative
expenses
$8
Fixed costs per year:
Fixed manufacturing overhead
$90,000
Fixed selling and administrative
expenses
$270,000
Direct materials
Direct labor
Variable manufacturing overhead
Absorption costing unit product cost
The unit product cost under absorption costing is:
6-274
93.
Hossack Corporation produces a single product and has the following cost structure:
Number of units produced each year
3,000
Variable costs per unit:
Direct materials
$17
Direct labor
$85
Variable manufacturing overhead
$1
Variable selling and administrative
expenses
$8
Fixed costs per year:
Fixed manufacturing overhead
$90,000
Fixed selling and administrative
expenses
$270,000
The unit product cost under variable costing is:
Direct materials
Direct labor
Variable manufacturing overhead
Variable costing unit product cost
6-275
6-276
94.
Crystal Corporation produces a single product. The company’s variable costing income
statement for the month of May appears below:
Crystal Corporation
Income Statement
For the month ended May 31
Sales ($10 per unit)
$900,000
Variable expenses:
Variable cost of goods sold
450,000
Variable selling expense
90,000
Total variable expenses
540,000
Contribution margin
360,000
Fixed expenses:
Fixed manufacturing overhead
240,000
Fixed selling and administrative
90,000
Total fixed expenses
330,000
Net operating income
$30,000
The company produced 80,000 units in May and the beginning inventory consisted of
25,000 units. Variable production costs per unit and total fixed costs have remained
constant over the past several months.
The value of the company’s inventory on May 31 under absorption costing would be:
6-277
6-278
95.
Crystal Corporation produces a single product. The company’s variable costing income
statement for the month of May appears below:
Crystal Corporation
Income Statement
For the month ended May 31
Sales ($10 per unit)
$900,000
Variable expenses:
Variable cost of goods sold
450,000
Variable selling expense
90,000
Total variable expenses
540,000
Contribution margin
360,000
Fixed expenses:
Fixed manufacturing overhead
240,000
Fixed selling and administrative
90,000
Total fixed expenses
330,000
Net operating income
$30,000
The company produced 80,000 units in May and the beginning inventory consisted of
25,000 units. Variable production costs per unit and total fixed costs have remained
constant over the past several months.
Under absorption costing, for May the company would report a: