Multiple choice 150-200 Flashcards
151) Croft Corporation produces a single product. Last year, the company had a net operating income of $100,640 using absorption costing and $75,800 using variable costing. The fixed manufacturing overhead cost was $12 per unit. There were no beginning inventories. If 27,900 units were produced last year, then sales last year were:
A) 3,060 units
B) 25,830 units
C) 29,970 units
D) 52,740 units
B) 25,830 units
152) 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:
A) 32,000 units
B) 40,000 units
C) 41,900 units
D) 54,000 units
C) 41,900 units
153) Pungent Corporation manufactures and sells a spice rack. Shown below are the actual operating results for the first two years of operations:
Year 1 Year 2 Units (spice racks) produced 40,000 40,000 Units (spice racks) sold 37,000 41,000 Absorption costing net operating income $ 44,000 $ 52,000 Variable costing net operating income $ 38,000 ???
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?
A) $48,000
B) $50,000
C) $54,000
D) $56,000
C) $54,000
154) Last year, Kirsten Corporation’s variable costing net operating income was $63,400. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $10,700. What was the absorption costing net operating income last year?
A) $10,700
B) $74,100
C) $63,400
D) $52,700
D) $52,700
155) 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?
A) $41,200
B) $11,200
C) $63,600
D) $52,400
A) $41,200
156) Sipho Corporation manufactures a single product. Last year, the company’s variable costing net operating income was $90,900. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $21,900. What was the absorption costing net operating income last year?
A) $69,000
B) $90,900
C) $21,900
D) $112,800
A) $69,000
157) Truo Corporation produces a single product. Last year, the company had net operating income of $100,000 using variable costing. Beginning and ending inventories were 13,000 units and 18,000 units, respectively. If the fixed manufacturing overhead cost was $4 per unit both last year and this year, what would have been the net operating income using absorption costing?
A) $80,000
B) $100,000
C) $120,000
D) $172,000
C) $120,000
158) Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $44,200 for Division A. Division B had a contribution margin ratio of 30% and its sales were $286,000. Net operating income for the company was $32,400 and traceable fixed expenses were $59,300. Corbel Corporation’s common fixed expenses were:
A) $38,300
B) $59,300
C) $97,600
D) $130,000
A) $38,300
159) Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $60,000 for Division A. Division B had a contribution margin ratio of 40% and its sales were $300,000. Net operating income for the company was $40,000 and traceable fixed expenses were $80,000. Corbel Corporation’s common fixed expenses were:
A) $140,000
B) $60,000
C) $100,000
D) $80,000
B) $60,000
160) Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $310,000, variable expenses of $155,100, and traceable fixed expenses of $71,300. The Alpha Division has sales of $620,000, variable expenses of $339,800, and traceable fixed expenses of $133,500. The total amount of common fixed expenses not traceable to the individual divisions is $135,200. What is the company’s net operating income?
A) $230,300
B) $435,100
C) $95,100
D) $280,200
C) $95,100
161) Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $580,000, variable expenses of $301,600, and traceable fixed expenses of $186,500. The Alpha Division has sales of $510,000, variable expenses of $178,500, and traceable fixed expenses of $222,100. The total amount of common fixed expenses not traceable to the individual divisions is $235,500. What is the company’s net operating income?
A) $374,400
B) $201,300
C) $609,900
D) ($34,200)
D) ($34,200)
162) Younie Corporation has two divisions: the South Division and the West Division. The corporation’s net operating income is $98,100. The South Division’s divisional segment margin is $44,400 and the West Division’s divisional segment margin is $171,700. What is the amount of the common fixed expense not traceable to the individual divisions?
A) $269,800
B) $216,100
C) $118,000
D) $142,500
C) $118,000
163) Younie Corporation has two divisions: the South Division and the West Division. The corporation’s net operating income is $26,900. The South Division’s divisional segment margin is $42,800 and the West Division’s divisional segment margin is $29,900. What is the amount of the common fixed expense not traceable to the individual divisions?
A) $56,800
B) $69,700
C) $72,700
D) $45,800
D) $45,800
164) Carroll Corporation has two products, Q and P. During June, the company’s net operating income was $21,000, and the common fixed expenses were $46,000. The contribution margin ratio for Product Q was 40%, its sales were $131,000, and its segment margin was $38,000. If the contribution margin for Product P was $36,000, the segment margin for Product P was:
A) $29,000
B) $38,000
C) $8,000
D) $67,000
A) $29,000
165) Carroll Corporation has two products, Q and P. During June, the company’s net operating income was $25,000, and the common fixed expenses were $37,000. The contribution margin ratio for Product Q was 30%, its sales were $200,000, and its segment margin was $21,000. If the contribution margin for Product P was $80,000, the segment margin for Product P was:
A) $62,000
B) $59,000
C) $37,000
D) $41,000
D) $41,000
166) J Corporation has two divisions. Division A has a contribution margin of $79,300 and Division B has a contribution margin of $126,200. If total traceable fixed expenses are $72,400 and total common fixed expenses are $34,900, what is J Corporation’s net operating income?
A) $168,000
B) $170,600
C) $133,100
D) $98,200
D) $98,200
167) Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The corporation’s net operating income is $11,700. The AFE Division’s divisional segment margin is $81,100 and the GBI Division’s divisional segment margin is $46,300. What is the amount of the common fixed expense not traceable to the individual divisions?
A) $92,800
B) $115,700
C) $58,000
D) $127,400
B) $115,700
168) Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The corporation’s net operating income is $42,000. The AFE Division’s divisional segment margin is $15,700 and the GBI Division’s divisional segment margin is $175,400. What is the amount of the common fixed expense not traceable to the individual divisions?
A) $149,100
B) $57,700
C) $217,400
D) $191,100
A) $149,100
169) Chang Corporation has two divisions, T and W. The company’s overall contribution margin ratio is 40%, with sales in the two divisions totaling $900,000. If variable expenses are $200,000 in Division T and if Division W’s contribution margin ratio is 20%, the sales in Division W must be:
A) $200,000
B) $425,000
C) $700,000
D) $340,000
B) $425,000
170) Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division’s divisional segment margin is $34,800 and the Export Products Division’s divisional segment margin is $87,200. The total amount of common fixed expenses not traceable to the individual divisions is $96,400. What is the company’s net operating income (loss)?
A) $218,400
B) $122,000
C) $25,600
D) ($122,000)
C) $25,600
171) 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?
A) $314,800
B) ($314,800)
C) $151,100
D) $478,500
C) $151,100
172) Eyestone Corporation has two divisions, A and B. The following data pertain to operations in October:
Division A Division B Sales $ 80,000 $ 170,000 Variable expenses as a percentage of sales 60% 80% Segment margin $ 10,000 $ 25,000
If common fixed expenses were $17,000, total fixed expenses were:
A) $48,000
B) $13,000
C) $31,000
D) $53,000
A) $48,000
173) WV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $86,000 annually and one salaried estimator who is paid $48,000 annually. The corporate office has two office administrative assistants who are paid salaries of $52,000 and $38,000 annually. The president’s salary is $156,000. How much of these salaries are common fixed expenses?
A) $156,000
B) $246,000
C) $90,000
D) $318,000
B) $246,000
174) WV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $58,000 annually and one salaried estimator who is paid $52,000 annually. The corporate office has two office administrative assistants who are paid salaries of $38,000 and $31,000 annually. The president’s salary is $127,000. How much of these salaries are common fixed expenses?
A) $127,000
B) $110,000
C) $196,000
D) $306,000
C) $196,000
175) Baughn Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 115
Units in beginning inventory 0
Units produced 6,600
Units sold 6,400
Units in ending inventory 200
Variable costs per unit:
Direct materials $ 26
Direct labor $ 46
Variable manufacturing overhead $ 7
Variable selling and administrative expense $ 9
Fixed costs:
Fixed manufacturing overhead $ 105,600
Fixed selling and administrative expense $ 51,200
What is the unit product cost for the month under absorption costing?
A) $79 per unit
B) $95 per unit
C) $104 per unit
D) $88 per unit
B) $95 per unit
176) Ross Corporation produces a single product. The company has direct materials costs of $8 per unit, direct labor costs of $6 per unit, and manufacturing overhead of $10 per unit. Sixty percent of the manufacturing overhead is for fixed costs. In addition, variable selling and administrative expenses are $2 per unit, and fixed selling and administrative expenses are $3 per unit at the current activity level. Assume that direct labor is a variable cost.
Under absorption costing, the unit product cost is:
A) $24 per unit
B) $20 per unit
C) $26 per unit
D) $29 per unit
A) $24 per unit
177) Ross Corporation produces a single product. The company has direct materials costs of $8 per unit, direct labor costs of $6 per unit, and manufacturing overhead of $10 per unit. Sixty percent of the manufacturing overhead is for fixed costs. In addition, variable selling and administrative expenses are $2 per unit, and fixed selling and administrative expenses are $3 per unit at the current activity level. Assume that direct labor is a variable cost.
Under variable costing, the unit product cost is:
A) $24 per unit
B) $20 per unit
C) $18 per unit
D) $21 per unit
C) $18 per unit
178) Columbia Corporation produces a single product. The company’s variable costing income statement for November appears below:
Columbia Corporation
Income Statement
For the Month ended November 30
Sales ($22 per unit) $ 952,600
Variable expenses:
Variable cost of goods sold 606,200
Variable selling expense 129,900
Total variable expenses 736,100
Contribution margin 216,500
Fixed expenses:
Manufacturing 107,130
Selling and administrative 35,710
Total fixed expenses 142,840
Net operating income $ 73,660
During November, 35,710 units were manufactured and 8,490 units were in beginning inventory. Variable production costs per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior months.
Under absorption costing, for November the company would report a:
A) $35,710 profit
B) $50,890 profit
C) $73,660 profit
D) $50,890 loss
B) $50,890 profit
179) Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 147
Units in beginning inventory 0
Units produced 6,900
Units sold 6,600
Units in ending inventory 300
Variable costs per unit:
Direct materials $ 24
Direct labor $ 54
Variable manufacturing overhead $ 18
Variable selling and administrative expense $ 18
Fixed costs:
Fixed manufacturing overhead $ 186,300
Fixed selling and administrative expense $ 27,600
What is the unit product cost for the month under variable costing?
A) $114 per unit
B) $141 per unit
C) $123 per unit
D) $96 per unit
D) $96 per unit
180) Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 90
Units in beginning inventory 0
Units produced 3,400
Units sold 3,000
Units in ending inventory 400
Variable costs per unit:
Direct materials $ 21
Direct labor $ 38
Variable manufacturing overhead $ 6
Variable selling and administrative expense $ 4
Fixed costs:
Fixed manufacturing overhead $ 5 4,400
Fixed selling and administrative expense $ 3,000
What is the unit product cost for the month under absorption costing?
A) $81 per unit
B) $65 per unit
C) $85 per unit
D) $69 per unit
A) $81 per unit
181) Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 112
Units in beginning inventory 0
Units produced 5,100
Units sold 4,490
Units in ending inventory 610
Variable costs per unit:
Direct materials $ 21
Direct labor $ 45
Variable manufacturing overhead $ 6
Variable selling and administrative expense $ 4
Fixed costs:
Fixed manufacturing overhead $ 57,700
Fixed selling and administrative expense $ 3,300
The total contribution margin for the month under variable costing is:
A) $100,640
B) $161,640
C) $103,940
D) $179,600
B) $161,640
182) Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 90
Units in beginning inventory 0
Units produced 3,400
Units sold 3,000
Units in ending inventory 400
Variable costs per unit:
Direct materials $ 21
Direct labor $ 38
Variable manufacturing overhead $ 6
Variable selling and administrative expense $ 4
Fixed costs:
Fixed manufacturing overhead $ 54,400
Fixed selling and administrative expense $ 3,000
The total gross margin for the month under the absorption costing approach is:
A) $12,000
B) $59,400
C) $63,000
D) $27,000
D) $27,000
183) Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 90
Units in beginning inventory 0
Units produced 3,400
Units sold 3,000
Units in ending inventory 400
Variable costs per unit:
Direct materials $ 21
Direct labor $ 38
Variable manufacturing overhead $ 6
Variable selling and administrative expense $ 4
Fixed costs:
Fixed manufacturing overhead $ 54,400
Fixed selling and administrative expense $ 3,000
What is the total period cost for the month under variable costing?
A) $54,400
B) $69,400
C) $57,400
D) $15,000
B) $69,400
184) Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price 90
Units in beginning inventory 0
Units produced 3,400
Units sold 3,000
Units in ending inventory 400
Variable costs per unit:
Direct materials $ 21
Direct labor $ 38
Variable manufacturing overhead $ 6
Variable selling and administrative expense $ 4
Fixed costs:
Fixed manufacturing overhead $ 54,400
Fixed selling and administrative expense $ 3,000
What is the net operating income for the month under variable costing?
A) $12,000
B) $(20,400)
C) $5,600
D) $6,400
C) $5,600
185) Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 78
Units in beginning inventory 0
Units produced 8,800
Units sold 8,700
Units in ending inventory 100
Variable costs per unit:
Direct materials $ 18
Direct labor $ 10
Variable manufacturing overhead $ 4
Variable selling and administrative expense $ 5
Fixed costs:
Fixed manufacturing overhead $ 255,200
Fixed selling and administrative expense $ 87,000
What is the net operating income for the month under variable costing?
A) $14,500
B) $17,400
C) $11,300
D) $2,900
A) $14,500
186) Janos Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 111
Units in beginning inventory 300
Units produced 2,000
Units sold 2,200
Units in ending inventory 100
Variable costs per unit:
Direct materials $ 29
Direct labor $ 30
Variable manufacturing overhead $ 4
Variable selling and administrative expense $ 9
Fixed costs:
Fixed manufacturing overhead $34,000
Fixed selling and administrative expense $39,600
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 unit product cost for the month under variable costing?
A) $63 per unit
B) $80 per unit
C) $72 per unit
D) $89 per unit
A) $63 per unit
187) Janos Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 111
Units in beginning inventory 300
Units produced 2,000
Units sold 2,200
Units in ending inventory 100
Variable costs per unit:
Direct materials $ 29
Direct labor $ 30
Variable manufacturing overhead $ 4
Variable selling and administrative expense $ 9
Fixed costs:
Fixed manufacturing overhead $ 34,000
Fixed selling and administrative expense $ 39,600
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
B) $12,200
188) Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 118
Units in beginning inventory 400
Units produced 2,100
Units sold 2,300
Units in ending inventory 200
Variable costs per unit:
Direct materials $ 37
Direct labor $ 23
Variable manufacturing overhead $ 3
Variable selling and administrative expense $ 5
Fixed costs:
Fixed manufacturing overhead $ 73,500
Fixed selling and administrative expense $ 29,900
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) $4,600
B) $11,600
C) $24,200
D) $7,000
B) $11,600
189) Bryans Corporation has provided the following data for its two most recent years of operation:
Selling price per unit $ 53
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials $ 13
Direct labor $ 6
Variable manufacturing overhead $ 5
Fixed manufacturing overhead per year $ 63,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 4
Fixed selling and administrative expense per year $ 71,000
Year 1 Year 2
Units in beginning inventory 0 3,000
Units produced during the year 9,000 7,000
Units sold during the year 6,000 7,000
Units in ending inventory 3,000 3,000
The net operating income (loss) under variable costing in Year 1 is closest to:
A) $174,000
B) $37,000
C) $150,000
D) $16,000
D) $16,000
190) Plummer Corporation has provided the following data for its two most recent years of operation:
Selling price per unit $ 44
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials $ 9
Direct labor $ 6
Variable manufacturing overhead $ 4
Fixed manufacturing overhead per year $ 63,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 5
Fixed selling and administrative expense per year $ 66,000
Year 1 Year 2
Units in beginning inventory 0 2,000
Units produced during the year 9,000 7,000
Units sold during the year 7,000 8,000
Units in ending inventory 2,000 1,000
The unit product cost under absorption costing in Year 2 is closest to:
A) $9.00
B) $19.00
C) $28.00
D) $33.00
C) $28.00
191) Plummer Corporation has provided the following data for its two most recent years of operation:
Selling price per unit $ 44
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials $ 9
Direct labor $ 6
Variable manufacturing overhead $ 4
Fixed manufacturing overhead per year $ 63,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 5
Fixed selling and administrative expense per year $ 66,000
Year 1 Year 2
Units in beginning inventory 0 2,000
Units produced during the year 9,000 7,000
Units sold during the year 7,000 8,000
Units in ending inventory 2,000 1,000
The unit product cost under variable costing in Year 1 is closest to:
A) $19.00
B) $24.00
C) $26.00
D) $31.00
A) $19.00
192) The Southern Corporation manufactures a single product and has the following cost structure:
Variable costs per unit:
Production $ 33
Selling and administrative $ 13
Fixed costs per year:
Production $ 217,210
Selling and administrative $ 195,490
Last year, 7,490 units were produced and 7,390 units were sold. There was no beginning inventory.
The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
A) the same as absorption costing.
B) $7,390 greater than under absorption costing.
C) $7,390 less than under absorption costing.
D) $2,900 less than under absorption costing.
D) $2,900 less than under absorption costing.
193) Smidt Corporation has provided the following data for its two most recent years of operation:
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials $ 9
Direct labor $ 5
Variable manufacturing overhead $ 5
Fixed manufacturing overhead per year $ 140,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 5
Fixed selling and administrative expense per year $ 65,000
Year 1 Year 2
Units in beginning inventory 0 3,000
Units produced during the year 10,000 7,000
Units sold during the year 7,000 6,000
Units in ending inventory 3,000 4,000
The unit product cost under absorption costing in Year 1 is closest to:
A) $19.00
B) $14.00
C) $33.00
D) $38.00
C) $33.00
194) Smidt Corporation has provided the following data for its two most recent years of operation:
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials $ 9
Direct labor $ 5
Variable manufacturing overhead $ 5
Fixed manufacturing overhead per year $ 140,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 5
Fixed selling and administrative expense per year $ 65,000
Year 1 Year 2
Units in beginning inventory 0 3,000
Units produced during the year 10,000 7,000
Units sold during the year 7,000 6,000
Units in ending inventory 3,000 4,000
The unit product cost under variable costing in Year 1 is closest to:
A) $24.00
B) $33.00
C) $19.00
D) $38.00
C) $19.00
195) Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows:
Direct materials $ 170,000
Direct labor $ 110,000
Variable manufacturing overhead $ 200,000
Fixed manufacturing overhead $ 240,000
Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost.
Under variable costing, the company’s net operating income for the year would be:
A) $101,250 lower than under absorption costing.
B) $60,000 lower than under absorption costing.
C) $101,250 higher than under absorption costing.
D) $60,000 higher than under absorption costing.
B) $60,000 lower than under absorption costing.
196) Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows:
Direct materials $ 170,000
Direct labor $ 110,000
Variable manufacturing overhead $ 200,000
Fixed manufacturing overhead $ 240,000
Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost.
Under absorption costing, the ending inventory for the year would be valued at:
A) $0
B) $216,000
C) $248,250
D) $180,000
D) $180,000
197) McCoy Corporation manufactures a computer monitor. Shown below is McCoy’s cost structure:
Variable cost per monitor Total fixed cost for the year Manufacturing cost $ 75.20 $ 912,000 Selling and administrative $ 14.60 $ 456,000
In its first year of operations, McCoy produced 100,000 monitors but only sold 95,000. McCoy’s gross margin in this first year was $2,629,600. McCoy’s contribution margin in this first year was $2,109,000.
Under absorption costing, what is McCoy’s net operating income for its first year?
A) $266,000
B) $786,600
C) $1,261,600
D) $2,173,600
B) $786,600
198) Helmers Corporation manufactures a single product. Variable costing net operating income last year was $86,000 and this year was $103,000. Last year, $32,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $12,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing.
What was the absorption costing net operating income last year?
A) $106,000
B) $86,000
C) $54,000
D) $118,000
C) $54,000
199) Helmers Corporation manufactures a single product. Variable costing net operating income last year was $86,000 and this year was $103,000. Last year, $32,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $12,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing.
What was the absorption costing net operating income this year?
A) $81,000
B) $83,000
C) $115,000
D) $123,000
C) $115,000
200) Tubaugh Corporation has two major business segments–East and West. In December, the East business segment had sales revenues of $240,000, variable expenses of $135,000, and traceable fixed expenses of $31,000. During the same month, the West business segment had sales revenues of $910,000, variable expenses of $480,000, and traceable fixed expenses of $173,000. The common fixed expenses totaled $254,000 and were allocated as follows: $127,000 to the East business segment and $127,000 to the West business segment.
The contribution margin of the West business segment is:
A) $430,000
B) $(49,000)
C) $537,000
D) $74,000
A) $430,000
201) Tubaugh Corporation has two major business segments–East and West. In December, the East business segment had sales revenues of $690,000, variable expenses of $352,000, and traceable fixed expenses of $104,000. During the same month, the West business segment had sales revenues of $140,000, variable expenses of $56,000, and traceable fixed expenses of $24,000. The common fixed expenses totaled $162,000 and were allocated as follows: $89,000 to the East business segment and $73,000 to the West business segment.
The contribution margin of the West business segment is:
A) $84,000
B) $234,000
C) $422,000
D) $145,000
A) $84,000
202) Tubaugh Corporation has two major business segments–East and West. In December, the East business segment had sales revenues of $410,000, variable expenses of $220,000, and traceable fixed expenses of $48,000. During the same month, the West business segment had sales revenues of $1,080,000, variable expenses of $548,000, and traceable fixed expenses of $207,000. The common fixed expenses totaled $322,000 and were allocated as follows: $161,000 to the East business segment and $161,000 to the West business segment.
A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:
A) $220,000
B) $142,000
C) $(29,000)
D) $(31,000)
B) $142,000
203) Tubaugh Corporation has two major business segments–East and West. In December, the East business segment had sales revenues of $690,000, variable expenses of $352,000, and traceable fixed expenses of $104,000. During the same month, the West business segment had sales revenues of $140,000, variable expenses of $56,000, and traceable fixed expenses of $24,000. The common fixed expenses totaled $162,000 and were allocated as follows: $89,000 to the East business segment and $73,000 to the West business segment.
A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:
A) $352,000
B) $145,000
C) $234,000
D) $249,000
C) $234,000
204) Tubaugh Corporation has two major business segments–East and West. In December, the East business segment had sales revenues of $690,000, variable expenses of $352,000, and traceable fixed expenses of $104,000. During the same month, the West business segment had sales revenues of $140,000, variable expenses of $56,000, and traceable fixed expenses of $24,000. The common fixed expenses totaled $162,000 and were allocated as follows: $89,000 to the East business segment and $73,000 to the West business segment.
A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:
A) $294,000
B) $422,000
C) $132,000
D) $(30,000)
C) $132,000
205) Ieso Corporation has two stores: J and K. During November, Ieso Corporation reported a net operating income of $30,000 and sales of $450,000. The contribution margin in Store J was $100,000, or 40% of sales. The segment margin in Store K was $30,000, or 15% of sales. Traceable fixed expenses are $60,000 in Store J, and $40,000 in Store K.
Sales in Store J totaled:
A) $400,000
B) $250,000
C) $150,000
D) $100,000
B) $250,000
206) Ieso Corporation has two stores: J and K. During November, Ieso Corporation reported a net operating income of $30,000 and sales of $450,000. The contribution margin in Store J was $100,000, or 40% of sales. The segment margin in Store K was $30,000, or 15% of sales. Traceable fixed expenses are $60,000 in Store J, and $40,000 in Store K.
Variable expenses in Store K totaled:
A) $70,000
B) $110,000
C) $200,000
D) $130,000
D) $130,000
207) Ieso Corporation has two stores: J and K. During November, Ieso Corporation reported a net operating income of $30,000 and sales of $450,000. The contribution margin in Store J was $100,000, or 40% of sales. The segment margin in Store K was $30,000, or 15% of sales. Traceable fixed expenses are $60,000 in Store J, and $40,000 in Store K.
Ieso Corporation’s total fixed expenses for the year were:
A) $40,000
B) $100,000
C) $140,000
D) $170,000
C) $140,000
208) Bertie Corporation has two divisions: Retail Division and Wholesale Division. The following data are for the most recent operating period:
Total Company Retail Division Wholesale Division Sales $ 711,400 $ 438,800 $ 272,600 Variable expenses $ 192,532 $ 105,300 $ 87,232 Traceable fixed expenses $ 332,400 $ 253,900 $ 78,500
The common fixed expenses of the company are $94,200.
The Wholesale Division’s break-even sales is closest to:
A) $115,441
B) $283,135
C) $138,529
D) $488,824
A) $115,441
