Question : 81. Gage Company reports the following information for its first : 1256601

 

 

81. Gage Company reports the following information for its first year of operations: 

Units produced this year

7,000 units

Units sold this year

6,500 units

Direct materials

$22 per unit

Direct labor

$30 per unit

Variable overhead

? in total

Fixed overhead

$56,000 in total

 

If the company’s cost per unit of finished goods using variable costing is $63, what is total variable overhead?A.  $21,000B.  $71,500C.  $77,000D.  $19,500E.  $16,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

82. A company reports the following information for its first year of operations: 

Units produced this year

650 units

Units sold this year

500 units

Direct materials

$750 per unit

Direct labor

$1,000 per unit

Variable overhead

? in total

Fixed overhead

$308,750 in total

If the company’s cost per unit of finished goods using variable costing is $2,375, what is total variable overhead?A.  $237,500B.  $75,000C.  $312,500D.  $406,250E.  $97,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

83. Magenta Inc. reports the following information for the current year which is its first year of operations: 

Units produced this year

750,000 units

Units sold this year

740,000 units

Direct materials

$18.30 per unit

Direct labor

$14.20 per unit

Variable overhead

? in total

Fixed overhead

$4,500,000 in total

If the company’s cost per unit of finished goods using absorption costing is $39.75, what is total variable overhead?A.  $925,000B.  $877,500C.  $937,500.D.  $865,800E.  $5,437,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

84. A company reports the following information for its first year of operations: 

Units produced this year

43,000 units

Units sold this year

39,000 units

Direct materials

$0.57 per unit

Direct labor

$0.83 per unit

Variable overhead

$26,660 in total

Fixed overhead

? in total

If the company’s cost per unit of finished goods using variable costing is $2.02, what is the amount of total fixed overhead?A.  $26,660B.  $35,690C.  $24,510D.  Some other amountE.  Cannot be determined from the given data.

 

 

85. A company reports the following information for its first year of operations: 

Units produced this year

? units

Units sold this year

1,500 units

Direct materials

$9 per unit

Direct labor

$5 per unit

Variable overhead

$7 per unit

Fixed overhead

$24,000 in total

If the company’s cost per unit of finished goods using absorption costing is $27, how many units were produced?A.  4,000 units.B.  3,600 units.C.  1,846 units.D.  2,667 units.E.  2,000 units.

 

 

86. Romtech Company sold 43,000 units of its product at a price of $300 per unit. Total variable cost per unit is $175, consisting of $168 in variable production cost and $7 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.A.  $5,375,000B.  $5,676,000C.  $12,599,000D.  $12,900,000E.  $7,525,000

 

 

87. Chance, Inc. sold 3,000 units of its product at a price of $72 per unit. Total variable cost per unit is $51, consisting of $32 in variable production cost and $19 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.A.  $96,000B.  $63,000C.  $120,000D.  $216,000E.  ($90,000)

 

 

 

 

88. Vision Tester, Inc., a manufacturer of optical glass, began operations on February 1 of the current year. During this time, the company produced 900,000 units and sold 800,000 units at a sales price of $12 per unit. Cost information for this year is shown in the following table: 

Production costs

 

Direct materials

$.80 per unit

Direct labor

$.70 per unit

Variable overhead

$500,000 in total

Fixed overhead

$450,000 in total

Non-production costs

 

Variable selling and administrative

$30,000 in total

Fixed selling and administrative

$490,000 in total

 

Given this information, which of the following is true?A.  Net income under variable costing will exceed net income under absorption costing by $50,000.B)  Net income under absorption costing will exceed net income under variable costing by $50,000.C.  Net income will be the same under both absorption and variable costing.D.  Net income under variable costing will exceed net income under absorption costing by $60,000.E.  Net income under absorption costing will exceed net income under variable costing by $60,000.

 

 

 

 

 

 

 

 

 

 

 

Reference: 19_02

Star Services, Inc., a manufacturer of telescopes, began operations on October 1 of the current year. During this time, the company produced 50,000 units and sold 35,000 units at a sales price of $500 per unit. Cost information for this year is shown in the following table: 

Production costs

 

Direct materials

$85 per unit

Direct labor

$65 per unit

Variable overhead

$200,000 in total

Fixed overhead

$350,000 in total

Nonproduction costs

 

Variable selling and administrative

$90,000 in total

Fixed selling and administrative

$500,000 in total

 

 

89. Given the Star Services, Inc. data, what is net income using absorption costing?A.  $18,670,000B.  $18,774,000C.  $16,360,000D.  $11,275,000E.  $11,170,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

90. Given the Star Services Inc. data, what is net income using variable costing?A.  $18,670,000B.  $18,774,000C.  $16,360,000D.  $11,274,000E.  $11,170,000

 

Reference: 19_03

Scavenger Company, a manufacturer of recycling bins, began operations on January 1 of the current year. During this time, the company produced 60,000 units and sold 55,000 units at a sales price of $15 per unit. Cost information for this year is shown in the following table: 

Production costs

 

Direct materials

$2.50 per unit

Direct labor

$3.00 per unit

Variable overhead

$45,000 in total

Fixed overhead

$240,000 in total

Nonproduction costs

 

Variable selling and administrative

$10,000 in total

Fixed selling and administrative

$50,000 in total