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Masley Corporation has provided the following data for its two most recent years of operation: Masley Corporation has provided the following data for its two most recent years of operation: In Year 1, 10,000 units were produced and in Year 2, 7,000 units were produced. Required: a. Assume the company uses absorption costing. Compute the unit product cost in each year. b. Assume the company uses variable costing. Compute the unit product cost in each year. In Year 1, 10,000 units were produced and in Year 2, 7,000 units were produced. Required: a. Assume the company uses absorption costing. Compute the unit product cost in each year. b. Assume the company uses variable costing. Compute the unit product cost in each year.

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a. Absorption costin...

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Ferrar Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for March appear below: Ferrar Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for March appear below: In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 to the Commercial business segment.A properly constructed segmented income statement in a contribution format would show that the segment margin of the Consumer business segment is: A) $164,000 B) $62,000 C) $394,000 D) $184,000 In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 to the Commercial business segment.A properly constructed segmented income statement in a contribution format would show that the segment margin of the Consumer business segment is:


A) $164,000
B) $62,000
C) $394,000
D) $184,000

E) A) and D)
F) None of the above

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Columbia Corporation produces a single product. The company's variable costing income statement for November appears below: Columbia Corporation produces a single product. The company's variable costing income statement for November appears below: During November, 35,710 units were manufactured and 8,490 units were in beginning inventory. Variable production costs per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior months.Under absorption costing, for November the company would report a: A) $73,660 profit B) $50,890 profit C) $35,710 profit D) $50,890 loss During November, 35,710 units were manufactured and 8,490 units were in beginning inventory. Variable production costs per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior months.Under absorption costing, for November the company would report a:


A) $73,660 profit
B) $50,890 profit
C) $35,710 profit
D) $50,890 loss

E) B) and D)
F) C) and D)

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Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Farris Corporation, which has only one 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? A) $2,900 B) $11,300 C) $17,400 D) $14,500 What is the net operating income for the month under absorption costing?


A) $2,900
B) $11,300
C) $17,400
D) $14,500

E) A) and C)
F) A) and B)

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Lenart Corporation has provided the following data for its two most recent years of operation: Lenart Corporation has provided the following data for its two most recent years of operation: The unit product cost under absorption costing in Year 2 is closest to: A) $39.00 B) $23.00 C) $10.00 D) $33.00 The unit product cost under absorption costing in Year 2 is closest to:


A) $39.00
B) $23.00
C) $10.00
D) $33.00

E) C) and D)
F) A) and D)

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Carriveau Corporation has two divisions: Consumer Division and Business Division. The following data are for the most recent operating period: Carriveau Corporation has two divisions: Consumer Division and Business Division. The following data are for the most recent operating period: The company's common fixed expenses total $63,360.The company's overall break-even sales is closest to: A) $398,837 B) $288,296 C) $488,153 D) $89,316 The company's common fixed expenses total $63,360.The company's overall break-even sales is closest to:


A) $398,837
B) $288,296
C) $488,153
D) $89,316

E) A) and C)
F) C) and D)

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Olguin Corporation produces a single product and has the following cost structure: Olguin Corporation produces a single product and has the following cost structure: Required:a. Compute the unit product cost under absorption costing.b. Compute the unit product cost under variable costing. Required:a. Compute the unit product cost under absorption costing.b. Compute the unit product cost under variable costing.

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a.Absorpti...

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Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Keyser Corporation, 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.What is the net operating income for the month under absorption costing? A) $7,000 B) $4,600 C) $11,600 D) $24,200 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.What is the net operating income for the month under absorption costing?


A) $7,000
B) $4,600
C) $11,600
D) $24,200

E) B) and C)
F) All of the above

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Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Keyser Corporation, 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.What is the net operating income for the month under variable costing? A) $4,600 B) $11,600 C) $24,200 D) $7,000 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.What is the net operating income for the month under variable costing?


A) $4,600
B) $11,600
C) $24,200
D) $7,000

E) A) and B)
F) All of the above

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Under variable costing, all variable production costs are treated as product costs.

A) True
B) False

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A cost that would be included in product costs under both absorption costing and variable costing is:


A) supervisory salaries.
B) factory rent.
C) variable manufacturing costs.
D) variable selling expenses.

E) None of the above
F) A) and B)

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Generally speaking, net operating income under variable and absorption costing will:


A) always be equal.
B) never be equal.
C) be equal only when production and sales are equal.
D) be equal only when production exceeds sales.

E) A) and B)
F) A) and C)

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Carroll Corporation has two products, Q and P. During June, the company's net operating income was $25,000, and the common fixed expenses were $37,000. The contribution margin ratio for Product Q was 30%, its sales were $200,000, and its segment margin was $21,000. If the contribution margin for Product P was $80,000, the segment margin for Product P was:


A) $62,000
B) $59,000
C) $37,000
D) $41,000

E) A) and C)
F) B) and C)

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A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: 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: A) $64,200 B) $249,900 C) $225,400 D) $98,000 The total contribution margin for the month under variable costing is:


A) $64,200
B) $249,900
C) $225,400
D) $98,000

E) A) and C)
F) B) and C)

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Sherwood Corporation has provided the following data for its two most recent years of operation: Sherwood Corporation has provided the following data for its two most recent years of operation: Required: a.Assume the company uses absorption costing. Compute the unit product cost in each year. b. Assume the company uses variable costing. Compute the unit product cost in each year. c. Assume the company uses absorption costing. Prepare an income statement for each year. d. Assume the company uses variable costing. Prepare an income statement for each year. e. Prepare a report in good form reconciling the variable costing and absorption costing net incomes. Required: a.Assume the company uses absorption costing. Compute the unit product cost in each year. b. Assume the company uses variable costing. Compute the unit product cost in each year. c. Assume the company uses absorption costing. Prepare an income statement for each year. d. Assume the company uses variable costing. Prepare an income statement for each year. e. Prepare a report in good form reconciling the variable costing and absorption costing net incomes.

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a. Absorption costing unit product costs...

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Younie Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $84,300. The South Division's divisional segment margin is $48,200 and the West Division's divisional segment margin is $172,000. What is the amount of the common fixed expense not traceable to the individual divisions?


A) $256,300
B) $220,200
C) $135,900
D) $132,500

E) B) and C)
F) None of the above

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The Southern Corporation manufactures a single product and has the following cost structure: The Southern Corporation manufactures a single product and has the following cost structure: Last year, 7,000 units were produced and 6,800 units were sold. There was no beginning inventory.Under variable costing, the unit product cost would be: A) $38 per unit B) $52 per unit C) $58 per unit D) $70 per unit Last year, 7,000 units were produced and 6,800 units were sold. There was no beginning inventory.Under variable costing, the unit product cost would be:


A) $38 per unit
B) $52 per unit
C) $58 per unit
D) $70 per unit

E) All of the above
F) B) and D)

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Letcher Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Letcher Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 56,000 units and sold 54,000 units. The company's only product is sold for $227 per unit.The company is considering using either super-variable costing or a variable costing system that assigns $11 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year? A) Variable costing net operating income exceeds super-variable costing net operating income by $124,000. B) Super-variable costing net operating income exceeds variable costing net operating income by $124,000. C) Variable costing net operating income exceeds super-variable costing net operating income by $22,000. D) Super-variable costing net operating income exceeds variable costing net operating income by $22,000. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 56,000 units and sold 54,000 units. The company's only product is sold for $227 per unit.The company is considering using either super-variable costing or a variable costing system that assigns $11 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?


A) Variable costing net operating income exceeds super-variable costing net operating income by $124,000.
B) Super-variable costing net operating income exceeds variable costing net operating income by $124,000.
C) Variable costing net operating income exceeds super-variable costing net operating income by $22,000.
D) Super-variable costing net operating income exceeds variable costing net operating income by $22,000.

E) B) and C)
F) A) and D)

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Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: 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 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

E) A) and B)
F) B) and C)

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Last year, Rasband Corporation's variable costing net operating income was $57,000. The fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $30,000.Required:Determine the absorption costing net operating income last year.

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