The Clyde Corporation's variable expenses are 40% of sales.Clyde Corporation is contemplating an advertising campaign thatwill cost $28,000. If sales increase by $78,000, the company's netoperating income will increase by:
$3,200
$31,200
$18,800
$63,600
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Deboer Company, which has only one product, has provided thefollowing data concerning its most recent month of operations:
Selling price $161 Units in beginninginventory 50 Units produced 1,550 Units sold 1,580 Units in endinginventory 20 Variable costs perunit: Directmaterials $53 Direct labor $30 Variablemanufacturing overhead $7 Variable selling andadministrative $12 Fixed costs: Fixed manufacturingoverhead $15,500 Fixed selling andadministrative $39,500
What is the total period costfor the month under the variable costing approach?
$55,000
$73,960
$58,460
$15,500
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HarrisCorporation produces a single product. Last year, Harrismanufactured 32,210 units and sold 26,700 units. Production costsfor the year were as follows:
Fixed manufacturingoverhead $418,730 Variablemanufacturing overhead $251,238 Direct labor $157,829 Directmaterials $241,575
Sales were $1,241,550, for the year, variable selling andadministrative expenses were $138,840, and fixed selling andadministrative expenses were $199,702. There was no beginninginventory. Assume that direct labor is a variable cost.
The contribution margin per unit would be: (Do not roundintermediate calculations.)
$26.30 per unit
$16.80 per unit
$22.80 per unit
$21.10 per unit
The Clyde Corporation's variable expenses are 40% of sales.Clyde Corporation is contemplating an advertising campaign thatwill cost $28,000. If sales increase by $78,000, the company's netoperating income will increase by: |
$3,200
$31,200
$18,800
$63,600
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Deboer Company, which has only one product, has provided thefollowing data concerning its most recent month of operations: |
| Selling price | $161 |
| Units in beginninginventory | 50 |
| Units produced | 1,550 |
| Units sold | 1,580 |
| Units in endinginventory | 20 |
| Variable costs perunit: | |
| Directmaterials | $53 |
| Direct labor | $30 |
| Variablemanufacturing overhead | $7 |
| Variable selling andadministrative | $12 |
| Fixed costs: | |
| Fixed manufacturingoverhead | $15,500 |
| Fixed selling andadministrative | $39,500 |
| What is the total period costfor the month under the variable costing approach? |
$55,000
$73,960
$58,460
$15,500
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
HarrisCorporation produces a single product. Last year, Harrismanufactured 32,210 units and sold 26,700 units. Production costsfor the year were as follows: |
| Fixed manufacturingoverhead | $418,730 |
| Variablemanufacturing overhead | $251,238 |
| Direct labor | $157,829 |
| Directmaterials | $241,575 |
Sales were $1,241,550, for the year, variable selling andadministrative expenses were $138,840, and fixed selling andadministrative expenses were $199,702. There was no beginninginventory. Assume that direct labor is a variable cost. |
The contribution margin per unit would be: (Do not roundintermediate calculations.) |
$26.30 per unit
$16.80 per unit
$22.80 per unit
$21.10 per unit
Related questions
A manufacturing company that produces a single product hasprovided the following data concerning its most recent month ofoperations: |
| Units in beginninginventory | 0 |
| Units produced | 4,400 |
| Units sold | 4,300 |
| Units in endinginventory | 100 |
Variable costs per unit:
| Directmaterials | $ | 49 |
| Direct labor | $ | 51 |
| Variable manufacturingoverhead | $ | 14 |
| Variable selling andadministrative | $ | 12 |
Fixed costs:
| Fixedmanufacturing overhead | $ | 92,400 |
| Fixed selling andadministrative | $ | 43,000 |
What is the variable costing unit product cost for the month?
$126 per unit
$147 per unit
$114 per unit
$127 per unit
A company produces a single product. Variable production costsare $13.3 per unit and variable selling and administrative expensesare $4.3 per unit. Fixed manufacturing overhead totals $49,000 andfixed selling and administration expenses total $53,000. Assuming abeginning inventory of zero, production of 5,300 units and sales of4,250 units, the dollar value of the ending inventory undervariable costing would be: |
$13,965
$23,415
$18,480
$9,450
A manufacturing company that produces a single product hasprovided the following data concerning its most recent month ofoperations: |
| Selling price | $150 |
| Units in beginninginventory | 150 |
| Units produced | 7,300 |
| Units sold | 6,900 |
| Units in endinginventory | 550 |
| Variable cost perunit: | |
| Directmaterials | $48 |
| Direct labor | $43 |
| Variablemanufacturing overhead | $8 |
| Variable selling andadministrative | $4 |
| Fixed costs: | |
| Fixed manufacturingoverhead | $233,600 |
| Fixed selling andadministrative | $82,800 |
What is the total period cost for the month under variablecosting? |
$233,600
$110,400
$316,400
$344,000
A manufacturing company that produces a single product hasprovided the following data concerning its most recent month ofoperations: |
| Selling price | $135 |
| Units in beginninginventory | 0 |
| Units produced | 2,770 |
| Units sold | 2,550 |
| Units in endinginventory | 220 |
| Variable cost perunit: | |
| Directmaterials | $49 |
| Direct labor | $16 |
| Variablemanufacturing overhead | $13 |
| Variable selling andadministrative | $12 |
| Fixed costs: | |
| Fixed manufacturingoverhead | $94,180 |
| Fixed selling andadministrative expenses | $17,850 |
The total gross margin for the month under absorption costingis: |
$58,650
$10,200
$103,950
$114,750
Brummitt Corporation has two divisions: the BAJ Division and theCBB Division. The corporation's net operating income is $11,500.The BAJ Division's divisional segment margin is $80,100 and the CBBDivision's divisional segment margin is $45,500. What is the amountof the common fixed expense not traceable to the individualdivisions? |
$91,600
$114,100
$57,000
$125,600
Quinnett Corporation has two divisions: the Export ProductsDivision and the Business Products Division. The Export ProductsDivision's divisional segment margin is $44,300 and the BusinessProducts Division's divisional segment margin is $96,700. The totalamount of common fixed expenses not traceable to the individualdivisions is $111,600. What is the company's net operatingincome? |
$252,600
$141,000
$29,400
($141,000)
Aaker Corporation, which has only one product, has provided thefollowing data concerning its most recent month of operations: |
| Sellingprice | $167 |
| Units in beginninginventory | 0 |
| Units produced | 7,150 |
| Units sold | 6,850 |
| Units in endinginventory | 300 |
| Variable costs perunit: | |
| Directmaterials | $29 |
| Directlabor | $59 |
| Variablemanufacturing overhead | $23 |
| Variableselling and administrative | $23 |
| Fixed costs: | |
| Fixedmanufacturing overhead | $193,050 |
| Fixedselling and administrative | $29,100 |
What is the unit product cost for the month under variablecosting?
$134 per units
$161 per units
$138 per units
$111 per units
Packer Company, which has only one product, has provided thefollowing data concerning its most recent month of operations: |
| Selling price | $ | 112 |
| Units in beginninginventory | 590 | |
| Units produced | 2,000 | |
| Units sold | 2,210 | |
| Units in endinginventory | 380 | |
| Variable costs perunit: | ||
| Directmaterials | $ | 28 |
| Direct labor | $ | 25 |
| Variablemanufacturing overhead | $ | 2 |
| Variable selling andadministrative | $ | 20 |
| Fixed costs: | ||
| Fixed manufacturingoverhead | $ | 48,000 |
| Fixed selling andadministrative | $ | 6,630 |
The company produces the same number of units every month,although the sales in units vary from month to month. The company'svariable costs per unit and total fixed costs have been constantfrom month to month. (Hint: Use the reconciliation method.) |
| Required: |
| a. | What is the unit product cost for the month under variablecosting? (Omit the "$" sign in your response.) |
| Cost perunit | |
| Variablecosting | $ |
| b. | Prepare a contribution format income statement for the monthusing variable costing. (Input all amounts as positivevalues except losses which should be indicated by a minus sign.Omit the "$" sign in your response.) |
| Variable Costing Income Statement | ||
| (Click toselect)Manufacturing overheadContribution marginSalesNet operatingincome (loss)Selling and administrative expensesVariable cost ofgoods soldVariable selling and administrative expenses | $ | |
| Variableexpenses: | ||
| (Click to select)Variableselling and administrative expensesManufacturing overheadNetoperating incomeSalesContribution marginVariable cost of goodssold | $ | |
| (Click toselect)Contribution marginVariable cost of goods soldManufacturingoverheadNet operating incomeSalesVariable selling andadministrative expenses | ||
| (Click toselect)Contribution marginSalesVariable cost of goodssoldManufacturing overheadVariable selling and administrativeexpensesNet operating income (loss) | ||
| Fixed expenses: | ||
| (Click to select)SalesNetoperating incomeFixed selling and administrative expensesVariablecost of goods soldContribution marginFixed manufacturingoverheadVariable selling and administrative expenses | ||
| (Click to select)SalesNetoperating incomeVariable cost of goods soldVariable selling andadministrative expensesFixed selling and administrativeexpensesFixed manufacturing overheadContribution margin | ||
| (Click toselect)Variable selling and administrative expensesManufacturingoverheadNet operating income (loss)Variable cost of goodssoldSelling and administrative expensesContributionmarginSales | $ | |
| c. | Without preparing an income statement, determine the absorptioncosting net operating income for the month. (Omit the "$"sign in your response.) |
| Reconciliation of Variable Costing and Absorption Costing NetOperating Incomes | |
| Variable costing netoperating income | $ |
| (Click toselect)DeductAdd: (Click to select)Fixed manufacturing overheadcosts released from inventory under absorption costingFixedmanufacturing overhead costs deferred in inventory under absorptioncosting | |
| Absorption costingnet operating income | $ |
Nesman Company, which has only one product, has provided thefollowing data concerning its most recent month of operations: |
| Selling price | $ | 115 |
| Units in beginninginventory | 390 | |
| Units produced | 6,680 | |
| Units sold | 6,570 | |
| Units in endinginventory | 500 | |
| Variable costs perunit: | ||
| Directmaterials | $ | 44 |
| Direct labor | $ | 19 |
| Variablemanufacturing overhead | $ | 3 |
| Variable selling andadministrative | $ | 14 |
| Fixed costs: | ||
| Fixed manufacturingoverhead | $ | 160,320 |
| Fixed selling andadministrative | $ | 59,130 |
The company produces the same number of units every month,although the sales in units vary from month to month. The company'svariable costs per unit and total fixed costs have been constantfrom month to month. |
| Required: |
| a. | Prepare a contribution format income statement for the monthusing variable costing. (Input all amounts as positivevalues except losses which should be indicated by a minus sign.Omit the "$" sign in your response.) |
| Unitproduct cost under variable costing: | |
| Direct materials | $ |
| Direct labor | |
| Variable manufacturingoverhead | |
| Variable costing unitproduct cost | $ |
| Variable Costing Income Statement | ||
| (Click to select)Netoperating income (loss)Manufacturing overheadSalesSelling andadministrative expensesVariable selling and administrativeexpensesVariable cost of goods soldContribution margin | $ | |
| Variableexpenses: | ||
| (Click to select)Variablecost of goods soldContribution marginManufacturing overheadDirectlaborSalesVariable selling and administrative expensesNet operatingincome | $ | |
| (Click to select)DirectlaborVariable cost of goods soldNet operatingincomeSalesManufacturing overheadContribution marginVariableselling and administrative expenses | ||
| (Click toselect)SalesSelling and administrative expensesContributionmarginVariable cost of goods soldManufacturing overheadNetoperating income (loss)Variable selling and administrativeexpenses | ||
| Fixed expenses: | ||
| (Click toselect)SalesVariable cost of goods soldContribution marginVariableselling and administrative expensesNet operating incomeFixedmanufacturing overheadFixed selling and administrativeexpenses | ||
| (Click to select)Fixedmanufacturing overheadSalesFixed selling and administrativeexpensesNet operating incomeVariable selling and administrativeexpensesVariable cost of goods soldContribution margin | ||
| (Click toselect)Variable cost of goods soldNet operating income(loss)Selling and administrative expensesSalesContributionmarginManufacturing overheadVariable selling and administrativeexpenses | $ | |
| b. | Prepare an income statement for the month using absorptioncosting. (Input all amounts as positive values exceptlosses which should be indicated by a minus sign. Leave no cellsblank - be certain to enter "0" wherever required. Omit the "$"sign in your response.) |
| Unitproduct cost under absorption costing: | |
| Direct materials | $ |
| Direct labor | |
| Variable manufacturingoverhead | |
| Fixed manufacturingoverhead cost | |
| Absorption costing unitproduct cost | $ |
| Absorption Costing Income Statement | ||
| (Click to select)Netoperating income (loss)Cost of goods soldSalesSelling andadministrative expensesGross margin | $ | |
| (Click toselect)Cost of goods soldGross marginSalesSelling andadministrative expensesNet operating income (loss) | ||
| (Click toselect)Gross marginSelling and administrative expensesSalesNetoperating income (loss)Cost of goods sold | ||
| (Click to select)Netoperating income (loss)SalesCost of goods soldSelling andadministrative expensesGross margin | ||
| (Click toselect)Selling and administrative expensesCost of goodssoldSalesNet operating income (loss)Gross margin | $ | |
