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Exam 4: Variable Costing and Segment Reporting: Tools for Management

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Question 141

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Neef Corporation has provided the following data for its two most recent years of operation: Which of the following statements is true for Year 2?

A) The amount of fixed manufacturing overhead released from inventories is $12,000
B) The amount of fixed manufacturing overhead released from inventories is $654,000
C) The amount of fixed manufacturing overhead deferred in inventories is $12,000
D) The amount of fixed manufacturing overhead deferred in inventories is $654,000

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Question 142

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Janos 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) $8,800
B) $12,200
C) $1,700
D) $24,800

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Question 143

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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. Show your work!

Tustin Corporation has provided the following data for its two most recent years of operation: The unit product cost under variable costing in Year 1 is closest to:

Neef 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:

Succulent Juice Corporation manufactures and sells premium tomato juice by the gallon. Succulent just finished its first year of operations. The following data relates to this first year: Required: Using absorption costing, prepare Succulent Juice Corporation's income statement for the year.

Kneeland Corporation has two divisions: Grocery Division and Convenience Division. The following report is for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. Required: a. What is the Grocery Division's break-even in sales dollars? b. What is the Convenience Division's break-even in sales dollars? c. What is the company's overall break-even in sales dollars? d. What would be the company's overall net operating income if the company operated at its two division's break-even points?

Pavelko Corporation has provided the following data for its two most recent years of operation: The unit product cost under variable costing in Year 2 is closest to:

Kern Corporation produces a single product. Selected information concerning the operations of the company follow: Assume that direct labor is a variable cost. Under absorption costing, the value of the ending finished goods inventory would be:

Baughn Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the unit product cost for the month under variable costing?

Segmented statements for internal use should not be prepared using the contribution format.

Bryans 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:

Croft Corporation produces a single product. Last year, the company had a net operating income of $160,000 using absorption costing and $149,000 using variable costing. The fixed manufacturing overhead cost was $10 per unit. There were no beginning inventories. If 43,000 units were produced last year, then sales last year were:

Erie Corporation manufactures a single product that it sells for $35 per unit. The company has the following cost structure: There were no units in inventory at the beginning of the year. During the year 30,000 units were produced and 25,000 units were sold. The company's net operating income under variable costing would be:

Lean production should result in reduced inventories. If lean production is successfully implemented, the difference in net operating income computed under the absorption and variable costing methods should be reduced.

Last year, Tinklenberg Corporation's variable costing net operating income was $52,400 and its inventory decreased by 1,400 units. Fixed manufacturing overhead cost was $8 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year?

Elison 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?

Danahy Corporation manufactures a single product. The following data pertain to the company's operations over the last two years: What was the absorption costing net operating income last year?

Baraban Corporation has provided the following data for its most recent year of operation: The unit product cost under variable costing is closest to:

Clemeson Corporation, which has only one product, has provided the following data concerning its most recent month of operations: The total contribution margin for the month under variable costing is: