Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
Mennig Corporation produces a single product and has the following cost structure:
122. The unit product cost under absorption costing is:
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123. The unit product cost under variable costing is:
Byron Company, which has only one product, has provided the following data concerning its
most recent month of operations:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
124. What is the unit product cost for the month under variable costing?
125. What is the unit product cost for the month under absorption costing?
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
During the last year, Snyder Co. produced 10,000 units of its only product. Costs incurred by
Snyder during the year were as follows:
126. The unit product cost under absorption costing was:
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127. The unit product cost under variable costing was:
Deboer Company, which has only one product, has provided the following data concerning
its most recent month of operations:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
128. What is the total period cost for the month under the variable costing approach?
129. What is the total period cost for the month under the absorption costing approach?
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
The following cost formula relates to last year’s operations at Lemine Manufacturing
Corporation:
Y = $84,000 + $60.00X
In the formula above, 75% of the fixed cost and 90% of the variable cost are manufacturing
costs. Y is the total cost and X is the number of units produced and sold.
130. If Lemine produces and sells 7,000 units, what is the unit product cost under each of the
following methods?
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
131. If Lemine produces and sells only 6,000 units, what is the unit product cost under each of
the following methods?
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
Pellman 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.
132. The unit product cost under absorption costing was:
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133. The unit product cost under variable costing was:
Elbon Company, which has only one product, has provided the following data concerning its
most recent month of operations:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
134. What is the net operating income for the month under variable costing?
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135. What is the net operating income for the month under absorption costing?
Gordon Company produces a single product that sells for $10 per unit. Last year there were
no beginning inventories, 100,000 units were produced, and 80,000 units were sold. The
company has the following cost structure:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
136. Net operating income under variable costing would be:
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137. The carrying value on the balance sheet of the ending finished goods inventory under
absorption costing would be:
Clements Company, which has only one product, has provided the following data concerning
its most recent month of operations:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
138. The total contribution margin for the month under the variable costing approach is:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
139. The total gross margin for the month under the absorption costing approach is:
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Kierst Company, which has only one product, has provided the following data concerning its
most recent month of operations:
The company produces the same number of units every month, although the sales in units
vary from month to month. The company’s variable costs per unit and total fixed costs have
been constant from month to month.
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
140. What is the net operating income for the month under variable costing?
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141. What is the net operating income for the month under absorption costing?
Krug Corporation manufactures a variety of products. The following data pertain to the
company’s operations over the last two years:
Chapter 06 – Variable Costing and Segment Reporting: Tools for Management
142. What was the absorption costing net operating income last year?