Question 1

Corbel Corporation has two divisions: Division A and Division B.Last month, the company reported a contribution margin of $60,000 for Division A.Division B had a contribution margin ratio of 40% and its sales were $300,000.Net operating income for the company was $40,000 and traceable fixed expenses were $80,000.Corbel Corporation's common fixed expenses were:

Accepted Answer

A)  $140,000
B)  $60,000
C)  $100,000
D)  $80,000E) A) and B)
F) All of the above

Question 2

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:

Accepted Answer

A)  $72,500
B)  $95,100
C)  $20,000
D)  $57,500E) A) and D)
F) B) and C)

Question 3

The net operating income (loss) under variable costing in Year 1 is closest to:

Accepted Answer

A)  $144,000
B)  $2,000
C)  $26,000
D)  $174,000E) None of the above
F) A) and B)

Question 4

The total contribution margin for the month under variable costing is:

Accepted Answer

A)  $27,000
B)  $63,000
C)  $8,600
D)  $75,000E) A) and C)
F) All of the above

Question 5

Corbett Corporation manufactures a single product.Last year, variable costing net operating income was $72,000.The fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $29,000.
Required:
Determine the absorption costing net operating income last year.Show your work!

Accepted Answer

The answer of Corbett Corporation manufactures a single product.Last year,...

Question 6

Clouthier Corporation has two divisions: Home Division and Commercial Division.The following report is for the most recent operating period:  The company's common fixed expenses total $29,700.
Required:
a.What is the Home Division's break-even in sales dollars?
b.What is the Commercial Division's break-even in sales dollars?
c.What is the company's overall break-even in sales dollars?

Accepted Answer

_TB2627_00 a.Home Division break-even:
S...

Question 7

The net operating income (loss) under variable costing in Year 2 is closest to:

Accepted Answer

A)  $630,000
B)  $75,000
C)  $87,000
D)  $580,000E) B) and D)
F) B) and C)

Question 8

Variable costing net operating income is usually closer to the net cash flow of a period than is absorption costing net operating income.

Accepted Answer

A) True 
 B)False

Question 9

The net operating income (loss) under absorption costing in Year 1 is closest to:

Accepted Answer

A)  $126,000
B)  $96,000
C)  $26,000 
D)  $2,000E) B) and D)
F) A) and B)

Question 10

Sipho Corporation manufactures a single product.Last year, the company's variable costing net operating income was $90,900.Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $21,900.What was the absorption costing net operating income last year?

Accepted Answer

A)  $69,000
B)  $90,900
C)  $21,900
D)  $112,800E) A) and B)
F) B) and C)

Question 11

Homeyer Corporation has provided the following data for its two most recent years of operation:    The net operating income (loss) under absorption costing in Year 1 is closest to:

Accepted Answer

A)  $102,000
B)  $30,000
C)  $176,000
D)  $208,000E) None of the above
F) All of the above

Question 12

Mullee Corporation produces a single product and has the following cost structure:  The absorption costing unit product cost is:

Accepted Answer

A)  $149 per unit
B)  $65 per unit
C)  $63 per unit
D)  $128 per unitE) B) and D)
F) B) and C)

Question 13

Which of the following is true of a company that uses absorption costing?

Accepted Answer

A)  Net operating income fluctuates directly with changes in sales volume.
B)  Fixed production and fixed selling costs are considered to be product costs.
C)  Unit product costs can change as a result of changes in the number of units manufactured.
D)  Variable selling expenses are included in product costs.E) None of the above
F) B) and C)

Question 14

Miscavage Corporation has two divisions: the Beta Division and the Alpha Division.The Beta Division has sales of $580,000, variable expenses of $301,600, and traceable fixed expenses of $186,500.The Alpha Division has sales of $510,000, variable expenses of $178,500, and traceable fixed expenses of $222,100.The total amount of common fixed expenses not traceable to the individual divisions is $235,500.What is the company's net operating income?

Accepted Answer

A)  $374,400
B)  $201,300
C)  $609,900
D)  ($34,200) E) None of the above
F) C) and D)

Question 15

Under absorption costing, the cost of goods sold for the year would be:

Accepted Answer

A)  $258,400
B)  $394,400
C)  $353,600
D)  $398,400E) A) and B)
F) B) and C)

Question 16

A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

Accepted Answer

A)  $352,000
B)  $145,000
C)  $234,000
D)  $249,000E) B) and C)
F) A) and D)

Question 17

What was the absorption costing net operating income last year?

Accepted Answer

A)  $106,000
B)  $86,000
C)  $54,000
D)  $118,000E) A) and B)
F) A) and C)

Question 18

The unit product cost under variable costing was:

Accepted Answer

A)  $115 per unit
B)  $123 per unit
C)  $118 per unit
D)  $170 per unitE) None of the above
F) B) and D)

Question 19

Shun Corporation manufactures and sells a hand held calculator.The following information relates to Shun's operations for last year:  What is Shun's absorption costing unit product cost for last year?

Accepted Answer

A)  $4.10 per unit
B)  $4.55 per unit
C)  $5.85 per unit
D)  $6.30 per unitE) All of the above
F) None of the above

Question 20

Boylston Corporation has provided the following data for its two most recent years of operation.The company makes a product that it sells for $75 per unit.It began Year 1 with no units in beginning inventory.   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.

Accepted Answer

a.Absorption costing unit product costs:...

Exam 7: Variable Costing and Segment Reporting: Tools for Management

The net operating income (loss) under variable costing in Year 1 is closest to:

Correct Answer
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A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

Correct Answer
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Shun Corporation manufactures and sells a hand held calculator.The following information relates to Shun's operations for last year: What is Shun's absorption costing unit product cost for last year?

Correct Answer
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Mullee Corporation produces a single product and has the following cost structure: The absorption costing unit product cost is:

Correct Answer
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The unit product cost under variable costing was:

Correct Answer
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Correct Answer
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What was the absorption costing net operating income last year?

Correct Answer
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Variable costing net operating income is usually closer to the net cash flow of a period than is absorption costing net operating income.

Correct Answer
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Sipho Corporation manufactures a single product.Last year, the company's variable costing net operating income was $90,900.Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $21,900.What was the absorption costing net operating income last year?

Correct Answer
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Which of the following is true of a company that uses absorption costing?

Correct Answer
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a.Absorption costing unit product costs:...
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Homeyer Corporation has provided the following data for its two most recent years of operation: The net operating income (loss) under absorption costing in Year 1 is closest to:

Correct Answer
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_TB2627_00 a.Home Division break-even:
S...
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The net operating income (loss) under absorption costing in Year 1 is closest to:

Correct Answer
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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:

Correct Answer
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The net operating income (loss) under variable costing in Year 2 is closest to:

Correct Answer
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Under absorption costing, the cost of goods sold for the year would be:

Correct Answer
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The total contribution margin for the month under variable costing is:

Correct Answer
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Exam 7: Variable Costing and Segment Reporting: Tools for Management

The net operating income (loss) under variable costing in Year 1 is closest to:

Correct AnswerverifiedShow Answer

A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

Correct AnswerverifiedShow Answer

Shun Corporation manufactures and sells a hand held calculator.The following information relates to Shun's operations for last year: What is Shun's absorption costing unit product cost for last year?

Correct AnswerverifiedShow Answer

Mullee Corporation produces a single product and has the following cost structure: The absorption costing unit product cost is:

Correct AnswerverifiedShow Answer

The unit product cost under variable costing was:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What was the absorption costing net operating income last year?

Correct AnswerverifiedShow Answer

Variable costing net operating income is usually closer to the net cash flow of a period than is absorption costing net operating income.

Correct AnswerverifiedShow Answer

Sipho Corporation manufactures a single product.Last year, the company's variable costing net operating income was $90,900.Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $21,900.What was the absorption costing net operating income last year?

Correct AnswerverifiedShow Answer

Which of the following is true of a company that uses absorption costing?

Correct AnswerverifiedShow Answer

Correct Answerverifieda.Absorption costing unit product costs:...View AnswerShow Answer

Homeyer Corporation has provided the following data for its two most recent years of operation: The net operating income (loss) under absorption costing in Year 1 is closest to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answerverified_TB2627_00 a.Home Division break-even:S...View AnswerShow Answer

The net operating income (loss) under absorption costing in Year 1 is closest to:

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

The net operating income (loss) under variable costing in Year 2 is closest to:

Correct AnswerverifiedShow Answer

Under absorption costing, the cost of goods sold for the year would be:

Correct AnswerverifiedShow Answer

The total contribution margin for the month under variable costing is:

Correct AnswerverifiedShow Answer

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a.Absorption costing unit product costs:...
View Answer

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_TB2627_00 a.Home Division break-even:
S...
View Answer

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