Variable , Absorption and Segment costing

19. Tsuchiya Corporation manufactures a variety of products. Last year, the company's variable costing net operating income was $57,500. Fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $35,400. What was the absorption costing net operating income last year

D. $92,900

10. Over an extended period of time in which the final ending inventories are zero, the accumulated net operating income figures reported under absorption costing will be:

C. the same as those reported under variable costing.

14. 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 variable costing?

D. $302,600

Would the following costs be classified as product or period costs under variable costing at a retail clothing store?

D. Option D Absoption costing : yes Variable costing: no

. Fixed manufacturing overhead is included in product costs under

D. Option D absorption costing: yes , variable costing: no

6. Selling and administrative expenses are considered to be:

D. a period cost under variable costing.

12. Segment margin is sales minus

D. variable expenses and traceable fixed expenses.

20. The ARB Company has two divisions: Electronics and DVD/Video Sales. Electronics has traceable fixed expenses of $146,280 and the DVD/Video Sales has traceable fixed expenses of $81,765. If ARB Company has a total of $322,490 in fixed expenses, what are its common fixed expenses?

A. $94,445

Which of the following are considered to be product costs under variable costing? I. Variable manufacturing overhead. II. Fixed manufacturing overhead. III. Selling and administrative expenses.

A. I.

7. A portion of the total fixed manufacturing overhead cost incurred during a period may:

A. be excluded from cost of goods sold under absorption costing.

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

A.95

21. Sugiki Corporation has two divisions: the Alpha Division and the Delta Division. The Alpha Division has sales of $820,000, variable expenses of $369,000, and traceable fixed expenses of $347,300. The Delta Division has sales of $460,000, variable expenses of $294,400, and traceable fixed expenses of $134,100. The total amount of common fixed expenses not traceable to the individual divisions is $97,300. What is the company's net operating income?

B. $37,900

16. Roy Corporation produces a single product. During July, Roy produced 10,000 units. Costs incurred during the month were as follows: Under absorption costing, any unsold units would be carried in the inventory account at a unit product cost of:

B. $4.40

17. Last year, Heidenescher Corporation's variable costing net operating income was $63,600 and its inventory decreased by 600 units. Fixed manufacturing overhead cost was $1 per unit. What was the absorption costing net operating income last year?

B. $63,000

Which of the following are considered to be product costs under absorption costing? I. Variable manufacturing overhead. II. Fixed manufacturing overhead. III. Selling and administrative expenses.

B. I and II

9. If the number of units produced exceeds the number of units sold, then net operating income under absorption costing will:

B. be greater than net operating income under variable costing.

. Net operating income reported under absorption costing will exceed net operating income reported under variable costing for a given period if:

B. production exceeds sales for that period

11. A common cost that should not be assigned to a particular product on a segmented income statement is:

B. the salary of the corporation president.

15. Cockriel 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. The variable costing unit product cost was:

C. $37 DM + DL + VMOH (14 +22+1= 37)

18. Sproles Inc. manufactures a variety of products. Variable costing net operating income was $90,500 last year and its inventory decreased by 3,500 units. Fixed manufacturing overhead cost was $6 per unit. What was the absorption costing net operating income last year?

C. $69,500

5. Under variable costing, costs that are treated as period costs include:

C. all fixed costs