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