Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
101
108) Columbia Corporation produces a single product. The company's variable costing income
statement for November appears below:
Columbia Corporation
Income Statement
For the Month ended November 30
Sales ($30 per unit)
$
1,200,000
Variable expenses:
Variable cost of goods sold
720,000
Variable selling expense
160,000
Total variable expenses
880,000
Contribution margin
320,000
Fixed expenses:
Manufacturing
140,000
Selling and administrative
35,000
Total fixed expenses
175,000
Net operating income
$
145,000
During November, 35,000 units were manufactured and 8,000 units were in beginning
inventory. Variable production costs have remained constant on a per unit basis over the past
several months.
Under absorption costing, for November the company would report a:
A) $145,000 profit
B) $125,000 profit
C) $125,000 loss
D) $120,000 profit
103
109) Aaron Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$
90
Units in beginning inventory
0
Units produced
3,400
Units sold
3,000
Units in ending inventory
400
Variable costs per unit:
Direct materials
$
21
Direct labor
$
38
Variable manufacturing overhead
$
6
Variable selling and administrative expense
$
4
Fixed costs:
Fixed manufacturing overhead
$
54,400
Fixed selling and administrative expense
$
3,000
What is the unit product cost for the month under variable costing?
A) $69 per unit
B) $65 per unit
C) $85 per unit
D) $81 per unit
110) Aaron Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$
90
Units in beginning inventory
0
Units produced
3,400
Units sold
3,000
Units in ending inventory
400
Variable costs per unit:
Direct materials
$
21
Direct labor
$
38
Variable manufacturing overhead
$
6
Variable selling and administrative expense
$
4
Fixed costs:
Fixed manufacturing overhead
$
54,400
Fixed selling and administrative expense
$
3,000
What is the unit product cost for the month under absorption costing?
A) $81 per unit
B) $65 per unit
C) $85 per unit
D) $69 per unit
106
111) Aaron Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$
90
Units in beginning inventory
0
Units produced
3,400
Units sold
3,000
Units in ending inventory
400
Variable costs per unit:
Direct materials
$
21
Direct labor
$
38
Variable manufacturing overhead
$
6
Variable selling and administrative expense
$
4
Fixed costs:
Fixed manufacturing overhead
$
54,400
Fixed selling and administrative expense
$
3,000
The total contribution margin for the month under variable costing is:
A) $27,000
B) $63,000
C) $8,600
D) $75,000
108
112) Aaron Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$
90
Units in beginning inventory
0
Units produced
3,400
Units sold
3,000
Units in ending inventory
400
Variable costs per unit:
Direct materials
$
21
Direct labor
$
38
Variable manufacturing overhead
$
6
Variable selling and administrative expense
$
4
Fixed costs:
Fixed manufacturing overhead
$
54,400
Fixed selling and administrative expense
$
3,000
The total gross margin for the month under the absorption costing approach is:
A) $12,000
B) $59,400
C) $63,000
D) $27,000
113) Aaron Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$
90
Units in beginning inventory
0
Units produced
3,400
Units sold
3,000
Units in ending inventory
400
Variable costs per unit:
Direct materials
$
21
Direct labor
$
38
Variable manufacturing overhead
$
6
Variable selling and administrative expense
$
4
Fixed costs:
Fixed manufacturing overhead
$
54,400
Fixed selling and administrative expense
$
3,000
What is the total period cost for the month under variable costing?
A) $54,400
B) $69,400
C) $57,400
D) $15,000
114) Aaron Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$
90
Units in beginning inventory
0
Units produced
3,400
Units sold
3,000
Units in ending inventory
400
Variable costs per unit:
Direct materials
$
21
Direct labor
$
38
Variable manufacturing overhead
$
6
Variable selling and administrative expense
$
4
Fixed costs:
Fixed manufacturing overhead
$
54,400
Fixed selling and administrative expense
$
3,000
What is the total period cost for the month under the absorption costing?
A) $54,400
B) $3,000
C) $69,400
D) $15,000
112
115) Aaron Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$
90
Units in beginning inventory
0
Units produced
3,400
Units sold
3,000
Units in ending inventory
400
Variable costs per unit:
Direct materials
$
21
Direct labor
$
38
Variable manufacturing overhead
$
6
Variable selling and administrative expense
$
4
Fixed costs:
Fixed manufacturing overhead
$
54,400
Fixed selling and administrative expense
$
3,000
What is the net operating income for the month under variable costing?
A) $12,000
B) $(20,400)
C) $5,600
D) $6,400
114
116) Aaron Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$
90
Units in beginning inventory
0
Units produced
3,400
Units sold
3,000
Units in ending inventory
400
Variable costs per unit:
Direct materials
$
21
Direct labor
$
38
Variable manufacturing overhead
$
6
Variable selling and administrative expense
$
4
Fixed costs:
Fixed manufacturing overhead
$
54,400
Fixed selling and administrative expense
$
3,000
What is the net operating income for the month under absorption costing?
A) $6,400
B) $12,000
C) $5,600
D) $(20,400)
116
117) Gabuat Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$
106
Units in beginning inventory
0
Units produced
2,600
Units sold
2,200
Units in ending inventory
400
Variable costs per unit:
Direct materials
$
46
Direct labor
$
28
Variable manufacturing overhead
$
2
Variable selling and administrative expense
$
7
Fixed costs:
Fixed manufacturing overhead
$
33,800
Fixed selling and administrative expense
$
8,800
The total contribution margin for the month under variable costing is:
A) $16,800
B) $37,400
C) $50,600
D) $66,000
118
118) Gabuat Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$
106
Units in beginning inventory
0
Units produced
2,600
Units sold
2,200
Units in ending inventory
400
Variable costs per unit:
Direct materials
$
46
Direct labor
$
28
Variable manufacturing overhead
$
2
Variable selling and administrative expense
$
7
Fixed costs:
Fixed manufacturing overhead
$
33,800
Fixed selling and administrative expense
$
8,800
The total gross margin for the month under the absorption costing approach is:
A) $73,000
B) $37,400
C) $13,200
D) $50,600
120
119) Gabuat Corporation, which has only one product, has provided the following data
concerning its most recent month of operations:
Selling price
$
106
Units in beginning inventory
0
Units produced
2,600
Units sold
2,200
Units in ending inventory
400
Variable costs per unit:
Direct materials
$
46
Direct labor
$
28
Variable manufacturing overhead
$
2
Variable selling and administrative expense
$
7
Fixed costs:
Fixed manufacturing overhead
$
33,800
Fixed selling and administrative expense
$
8,800
What is the total period cost for the month under variable costing?
A) $42,600
B) $33,800
C) $24,200
D) $58,000
