Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
44. Swiatek Corporation produces a single product and has the following cost structure:
The variable costing unit product cost is:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
45. Cockriel Inc., which produces a single product, has provided the following data for its
most recent month of operations:
There were no beginning or ending inventories. The variable costing unit product cost was:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
46. A manufacturing company that produces a single product has provided the following data
concerning its most recent month of operations:
What is the total period cost for the month under absorption costing?
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
47. Roy Corporation produces a single product. During July, Roy produced 10,000 units.
Costs incurred during the month were as follows:
Under absorption costing, any unsold units would be carried in the inventory account at a unit
product cost of:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
48. A manufacturing company that produces a single product has provided the following data
concerning its most recent month of operations:
What is the net operating income for the month under variable costing?
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
49. A manufacturing company that produces a single product has provided the following data
concerning its most recent month of operations:
What is the net operating income for the month under absorption costing?
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
50. A manufacturing company that produces a single product has provided the following data
concerning its most recent month of operations:
The total gross margin for the month under absorption costing is:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
51. A company produces a single product. Last year, fixed manufacturing overhead was
$30,000, variable production costs were $48,000, fixed selling and administration costs were
$20,000, and variable selling administrative expenses were $9,600. There was no beginning
inventory. During the year, 3,000 units were produced and 2,400 units were sold at a price of
$40 per unit. Under variable costing, net operating income would be:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
52. A manufacturing company that produces a single product has provided the following data
concerning its most recent month of operations:
The total contribution margin for the month under variable costing is:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
53. Last year, Heidenescher Corporation’s variable costing net operating income was $63,600
and its inventory decreased by 600 units. Fixed manufacturing overhead cost was $1 per unit.
What was the absorption costing net operating income last year?
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
54. Sproles Inc. manufactures a variety of products. Variable costing net operating income
was $90,500 last year and its inventory decreased by 3,500 units. Fixed manufacturing
overhead cost was $6 per unit. What was the absorption costing net operating income last
year?
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
55. Roberts Company produces a single product. This year, the company’s net operating
income under absorption costing was $2,000 lower than under variable costing. The company
sold 8,000 units during the year, and its variable costs were $8 per unit, of which $2 was
variable selling and administrative expense. If production cost was $10 per unit under
absorption costing, then how many units did the company produce during the year? (The
company produced the same number of units last year.)
56. Evans Company produces a single product. During the most recent year, the company had
a net operating income of $90,000 using absorption costing and $84,000 using variable
costing. The fixed overhead application rate was $6 per unit. There were no beginning
inventories. If 22,000 units were produced last year, then sales for last year were:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
57. Craft Company 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:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
58. Moore Company produces a single product. During last year, Moore’s variable production
costs totaled $10,000 and its fixed manufacturing overhead costs totaled $6,800. The
company produced 5,000 units during the year and sold 4,600 units. There were no units in
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
59. Last year, Salada Corporation’s variable costing net operating income was $97,000. Fixed
manufacturing overhead costs released from inventory under absorption costing amounted to
$14,000. What was the absorption costing net operating income last year?
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
60. Tsuchiya Corporation manufactures a variety of products. Last year, the company’s
variable costing net operating income was $57,500. Fixed manufacturing overhead costs
deferred in inventory under absorption costing amounted to $35,400. What was the absorption
costing net operating income last year?
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
61. Stephen Company produces a single product. Last year, the company had 20,000 units in
its ending inventory. During the year, Stephen’s variable production costs were $12 per unit.
The fixed manufacturing overhead cost was $8 per unit in the beginning inventory. The
company’s net operating income for the year was $9,600 higher under variable costing than it
was under absorption costing. The company uses a last-in-first-out (LIFO) inventory flow
assumption. Given these facts, the number of units of product in the beginning inventory last
year must have been: