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

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Question 51

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Pacheo 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. Required: a.What is the unit product cost for the month under variable costing? b.Prepare a contribution format income statement for the month using variable costing. c.Without preparing an income statement, determine the absorption costing net operating income for the month.(Hint: Use the reconciliation method.)

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a.Variable costing unit product cost _TB...

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Question 52

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The unit product cost under variable costing in Year 1 is closest to:

A) $21.00
B) $57.00
C) $62.00
D) $26.00

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Question 53

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The total gross margin for the month under the absorption costing approach is:

Under variable costing, the company's net operating income for the year would be:

What is the total period cost for the month under the absorption costing?

The contribution margin per unit was:

Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division.The Governmental Products Division's divisional segment margin is $255,000 and the Export Products Division's divisional segment margin is $59,800.The total amount of common fixed expenses not traceable to the individual divisions is $163,700.What is the company's net operating income?

If Urban sales were 10% higher last year, by approximately how much would Azuki's net operating income have increased? (Assume no change in selling prices, unit variable expenses, or total fixed expenses.)

Which of the following will usually be found on an income statement prepared using absorption costing?

The Wholesale Division's break-even sales is closest to:

How would the following costs be classified (product or period)under variable costing at a retail clothing store?

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

Holts Corporation has two divisions: Xi and Sigma.Data from the most recent month appear below: The company's common fixed expenses total $78,840.The break-even in sales dollars for Sigma Division is closest to:

The contribution margin of the Commercial business segment is:

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

Pungent Corporation manufactures and sells a spice rack.Shown below are the actual operating results for the first two years of operations: Pungent's selling price and unit variable cost and total fixed cost were the same for both years.What is Pungent's variable costing net operating income for Year 2?

The Dorset Corporation produces and sells a single product.The following data refer to the year just completed: Assume that direct labor is a variable cost. Required: a.Compute the unit product cost under both the absorption costing and variable costing approaches. b.Prepare an income statement for the year using absorption costing. c.Prepare an income statement for the year using variable costing. d.Reconcile the absorption costing and variable costing net operating income figures in (b)and (c)above.

What is the total period cost for the month under the absorption costing?

When reconciling variable costing and absorption costing net operating income, fixed manufacturing overhead costs deferred in inventory under absorption costing should be deducted from variable costing net operating income to arrive at the absorption costing net operating income.

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?