Question : 36.Sticker Creations’ fixed manufacturing overhead costs totaled $68,000 and its : 1302746

 

 

36.Sticker Creations’ fixed manufacturing overhead costs totaled $68,000 and its variable selling costs totaled $45,000. Under full costing, how should these costs be classified?

 

Period CostsProduct Costs

A.                            $68,000              $45,000

B.                            $113,000              $0

C.                            $0              $113,000

D.                            $45,000              $68,000

 

37.Diecast Tools’ manufacturing costs for 2014 are as follows:

 

Direct materials              $100,000

Direct labor              120,000

Depreciation of factory equipment              30,000

Production supervisor’s salary              72,000

Other fixed manufacturing overhead              50,000

 

What amount should be considered product costs for external reporting purposes?

A.$220,000

B.$293,000

C.$402,000

D.$372,000

 

38.Robley Company’s fixed manufacturing overhead costs totaled $235,000 and fixed corporate operating costs totaled $116,000. Under full costing, how should these costs be classified?

 

Period CostsProduct Costs

A.                            $235,000              $116,000

B.                            $0              $351,000

C.                            $351,000              $0

D.                            $116,000              $235,000

 

39.Cold City Blowers produces snow blowers. The selling price per snow blower is $80. Costs involved in production are:

 

Direct material per unit              $          22

Direct labor per unit              15

Variable manufacturing overhead per unit              6

Fixed manufacturing overhead per year              206,400

 

In addition, the company has fixed selling and administrative costs of $88,000 per year. During the year, Cold City Blowers produced 8,600 snow blowers and sold 8,000 snow blowers. There is no beginning inventory. Ignoring taxes, how much will full costing net income differ from variable costing net income?

A.$15,480

B.$14,400

C.$206,400

D.$192,000

 

40.Which of the following items appears on a variable costing income statement but not on a full costing income statement?

A.Sales

B.Gross margin

C.Net income

D.Contribution margin

 

41.Variable costing income is a function of

A.only units sold.

B.only units produced.

C.both units sold and units produced.

D.neither units sold nor units produced.

 

42.Which of the following items on a variable costing income statement will change in direct proportion to a change in sales?

A.Sales, contribution margin, and net income

B.Sales, variable costs, and contribution margin

C.Sales, variable costs, contribution margin, fixed costs, and net income

D.Sales, variable costs, and fixed costs

 

43.If a company’s income is positive and fixed costs exist, which of the following items will increase or decrease at a greater rate than the change in the amount of sales on a variable costing income statement?

A.Variable costs

B.Fixed costs

C.Contribution margin

D.Net income

 

44.Ranger Productions experienced the following costs in 2014:

 

Direct materials$1.50 per unit

Direct labor$2.60 per unit

Variable manufacturing overhead$1.20 per unit

Variable selling costs$4.40 per unit

Fixed manufacturing overhead$84,000

Fixed selling costs$32,000

Fixed administrative costs$15,000

 

During 2014, the company manufactured 65,000 units and sold 62,000 units. The unit cost is the same throughout the year. Beginning inventory is zero. How much will the company report as total variable product costs on its 2014 contribution income statement?

A.$328,600

B.$601,400

C.$344,500

D.$630,500

 

45.Anders Supply experienced the following costs in May:

 

Direct materials$6.50 per unit

Direct labor$2.20 per unit

Manufacturing overhead costs

Variable$3.10 per unit

Fixed$44,000

Selling & administrative costs

Variable selling costs$1.50 per unit

Fixed selling costs$21,000

Fixed administrative costs$16,000

 

During May, the company manufactured 22,000 units and sold 24,000 units. Beginning inventory totaled 3,400 units. If the average selling price per unit was $28, how much is the company’s contribution margin?

A.$327,400

B.$352,800

C.$323,400

D.$344,800

 

 

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