Question :
66.Radial Fuel Cells experienced the following costs in 2014 (Assume : 1302749
66.Radial Fuel Cells experienced the following costs in 2014 (Assume the same unit costs in all years):
Direct materials$4 per unit
Direct labor$8 per unit
Manufacturing Overhead Costs
Variable$2 per unit
Fixed$150,000
Selling & Administrative Costs
Fixed selling$30,000
Variable selling$1 per unit
Fixed administrative$20,000
During the year, the company manufactured 50,000 units and sold 45,000 units. Beginning inventory is zero. If net income for the year was $265,000 using full costing, what would net income be if the company used variable costing?
A.$250,000
B.$265,000
C.$270,000
D.$450,000
67.If a company employs JIT inventory techniques, which statement is true?
A.Variable and full costing income will differ very little since there is almost no inventory on hand.
B.Variable and full costing income will differ very little since there are almost no fixed costs incurred on production.
C.Variable and full costing income will differ greatly since actual costs are difficult to determine.
D.Variable and full costing income will differ greatly since there will be a large difference between gross margin and contribution margin.
68.Waterloo Skyline experienced the following costs in 2014:
Direct materials$3.15 per unit
Direct labor$2.80 per unit
Variable manufacturing overhead$1.45 per unit
Fixed manufacturing overhead$12.60 per unit
There was no beginning inventory. During the year, the company sold 190,000 units. If net income using full and variable costing was $939,020 and $905,000, respectively, how many units did the company produce in 2014?
A.192,700
B.2,700
C.187,300
D.46,951
69.Which is most consistent with cost-volume-profit analysis?
A.Variable costing
B.Full costing
C.Absorption costing
D.JIT
70.Which method provides an incentive for managers to produce more units in order to increase income for performance evaluations?
A.Full costing
B.Variable costing
C.Both full costing and variable costing
D.Neither full costing nor variable costing
71.Last month, Brand Products manufactured 25,000 calculators and sold 23,000 of these calculators at a price of $10.00 each. Manufacturing costs consisted of direct labor, $30,000; direct materials, $32,000; variable manufacturing overhead, $3,500; fixed manufacturing overhead, $21,500. Selling and administrative costs are all fixed and totaled $24,000. Beginning inventory consists of no units. What is Brand Products’ net income using variable costing?
A.$125,960
B.$149,960
C.$169,740
D.$124,240
72.Last month, Brand Products manufactured 25,000 calculators and sold 23,000 of these calculators at a price of $10.00 each. Manufacturing costs consisted of direct labor, $30,000; direct materials, $32,000; variable manufacturing overhead, $3,500; fixed manufacturing overhead, $21,500. Selling and administrative costs are all fixed and totaled $24,000. Beginning inventory consists of no units. What is Brand Products’ net income using full costing?
A.$124,240
B.$125,960
C.$169,740
D.$149,960
73.Last month, Brand Products manufactured 25,000 calculators and sold 23,000 of these calculators at a price of $10.00 each. Manufacturing costs consisted of direct labor, $30,000; direct materials, $32,000; variable manufacturing overhead, $3,500; fixed manufacturing overhead, $21,500. Selling and administrative costs are all fixed and totaled $24,000. Beginning inventory consists of no units. Brand Products uses variable costing. How much will the company’s contribution margin increase if sales increase 10%?
A.$16,974
B.$23,000
C.$14,996
D.$12,420
74.Last month, Brand Products manufactured 25,000 calculators and sold 23,000 of these calculators at a price of $10.00 each. Manufacturing costs consisted of direct labor, $30,000; direct materials, $32,000; variable manufacturing overhead, $3,500; fixed manufacturing overhead, $21,500. Selling and administrative costs are all fixed and totaled $24,000. Beginning inventory consists of no units. Brand Products uses full costing. How much will the company’s gross margin increase if sales increase 10%?
A.Less than 10%
B.More than 10%
C.10%
D.It depends on other factors not given.
75.Affinity makes a single product, pool pumps. Information for 2014 appears below:
Sales in units5,800
Production in units6,200
Beginning inventory1,500
Variable production cost per unit$46.00
Variable selling cost per unit$6.00
Fixed production cost per year$31,000
Fixed selling and administrative cost per year$24,000
Selling price per unit$75.00
How much is the contribution margin per unit of inventory?
A.$29.00
B.$24.00
C.$23.00
D.$18.00
