11. A manufacturing company that produces a single product has provided the following data concerning its most recen…
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Question “11. A manufacturing company that produces a single product has provided the following data concerning its most recen…”
11.
A manufacturing company that produces a single product has
provided the following data concerning its most recent month of
operations:
Units in beginning
inventory
0
Units produced
4,150
Units sold
4,050
Units in ending
inventory
100
Variable costs per unit:
Direct
materials
$
44
Direct labor
$
46
Variable manufacturing
overhead
$
9
Variable selling and
administrative
$
7
Fixed costs:
Fixed
manufacturing overhead
$
87,150
Fixed selling and
administrative
$
40,500
What is the variable costing unit product cost for the month?
$106 per unit
$127 per unit
$99 per unit
$117 per unit
12.
Olds Inc., which produces a single product, has provided the
following data for its most recent month of operations:
Number of units
produced
10,700
Variable costs per
unit:
Direct
materials
$108
Direct labor
$51
Variable
manufacturing overhead
$7
Variable selling and
administrative expense
$9
Fixed costs:
Fixed manufacturing
overhead
$417,300
Fixed selling and
administrative expense
$834,600
There were no beginning or
ending inventories. The absorption costing unit product cost
was:
$159 per unit
$205 per unit
$166 per unit
$292 per unit
13.
A company produces a single product. Variable production costs
are $12.5 per unit and variable selling and administrative expenses
are $3.5 per unit. Fixed manufacturing overhead totals $41,000 and
fixed selling and administration expenses total $45,000. Assuming a
beginning inventory of zero, production of 4,500 units and sales of
3,850 units, the dollar value of the ending inventory under
variable costing would be:
$8,125
$13,975
$10,400
$5,850
14.
A manufacturing company that produces a single product has
provided the following data concerning its most recent month of
operations:
Selling price
$176
Units in beginning
inventory
0
Units produced
12,900
Units sold
12,500
Units in ending
inventory
400
Variable cost per
unit:
Direct
materials
$54
Direct labor
$48
Variable
manufacturing overhead
$12
Variable selling and
administrative
$8
Fixed costs:
Fixed manufacturing
overhead
$412,800
Fixed selling and
administrative
$225,000
What is the total period cost for the month under variable
costing?
$412,800
$325,000
$637,800
$737,800
15.
A manufacturing company that produces a single product has
provided the following data concerning its most recent month of
operations:
Selling price
$140
Units in beginning
inventory
0
Units produced
3,150
Units sold
2,760
Units in ending
inventory
390
Variable cost per
unit:
Direct
materials
$47
Direct labor
$18
Variable
manufacturing overhead
$10
Variable selling and
administrative
$19
Fixed costs:
Fixed manufacturing
overhead
$107,100
Fixed selling and
administrative expenses
$24,840
The total gross margin for the month under absorption costing
is:
$85,560
$8,280
$116,160
$126,960
16.
Brummitt Corporation has two divisions: the BAJ Division and the
CBB Division. The corporation’s net operating income is $11,400.
The BAJ Division’s divisional segment margin is $79,600 and the CBB
Division’s divisional segment margin is $45,100. What is the amount
of the common fixed expense not traceable to the individual
divisions?
$91,000
$113,300
$56,500
$124,700
17.
Koen Corporation has two divisions: Division A and Division B.
Last month, the company reported a contribution margin of $40,000
for Division A. Division B had a contribution margin ratio of 30%
and its sales were $257,000. Net operating income for the company
was $36,300 and traceable fixed expenses were $59,900. Koen
Corporation’s common fixed expenses were:
$20,900
$59,900
$80,800
$117,100
18.
Insider Corporation has two divisions, J and K. During March,
the contribution margin in Division J was $33,000. The contribution
margin ratio in Division K was 40%, its sales were $128,000, and
its segment margin was $35,000. The common fixed expenses in the
company were $43,000, and the company’s net operating income was
$19,500. The segment margin for Division J was:
$27,500
$35,000
$8,000
$62,500
19.
Farron Corporation, which has only one product, has provided the
following data concerning its most recent month of operations:
Selling
price
$104
Units in beginning
inventory
0
Units produced
8,850
Units sold
8,450
Units in ending
inventory
400
Variable costs per
unit:
Direct
materials
$16
Direct
labor
$58
Variable
manufacturing overhead
$4
Variable
selling and administrative
$8
Fixed costs:
Fixed
manufacturing overhead
$132,750
Fixed
selling and administrative
$8,600
What is the net operating income for the month under variable
costing?
$10,750
$(20,450)
$16,750
$6,000
20.
Farron Corporation, which has only one product, has provided the
following data concerning its most recent month of operations:
Selling
price
$124
Units in beginning
inventory
0
Units produced
9,100
Units sold
8,700
Units in ending
inventory
400
Variable costs per
unit:
Direct
materials
$21
Direct
labor
$63
Variable
manufacturing overhead
$9
Variable
selling and administrative
$13
Fixed costs:
Fixed
manufacturing overhead
$136,500
Fixed
selling and administrative
$9,100
What is the net operating income for the month under absorption
costing?
$26,200
$11,000
$17,000
$6,000
Answer
11. $99 per unit (Add direct materials, direct labor and variable manufacturing cost per unit).
12. $205 per unit
Produced units
10,700
Materials
108
1,155,600
Labor
51
545,700
Variable o/h
7
74,900
Fixed o/h
39*
417,300
Total
205
2,193,500
* 417,300/10,700 = 39
13. $8,125
Ending inventory = 4,500-3,850
Valued @ product unit cost $12.5 per unit under variable costing
14. Total period cost under variable costing = Fixed manufacturing + Fixed selling/ administrative
412,800+225,000 = 637,800
15.$85,560
Selling price
Direct Materials
47
Direct Labor
18
Variable o/h
10
Fixed o/h
34
Cost per unit
109
Selling price per unit = 140
Gross margin per unit = 31
Gross margin total = 2,760*31 = 85 560
16.113,300
The total segmental margin for both units is 124,700
Less: Net operating income = 11,400
Fixed expenses cannot be traced to segments = 113 300
17. 20,900
Division A Contribution Margin = 40,000
+Contribution margin for Division B = 257000*30% = 77,000
Total = 117.100
Fixed expenses – treaceable = 59,900
less: Net operating income = 36,300
Fixed expenses not traceable = 20,900
Conclusion
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