Question :
21) The following information pertains to Brian Stone Corporation:
Beginning : 1212192
21) The following information pertains to Brian Stone Corporation:
Beginning fixed manufacturing overhead in inventory$60,000
Ending fixed manufacturing overhead in inventory45,000
Beginning variable manufacturing overhead in inventory$30,000
Ending variable manufacturing overhead in inventory14,250
Fixed selling and administrative costs$724,000
Units produced5,000 units
Units sold4,800 units
What is the difference between operating incomes under absorption costing and variable costing?
A) $750
B) $7,500
C) $15,000
D) $30,750
Stiller Corporation incurred fixed manufacturing costs of $24,000 during 2015. Other information for 2015 includes:
The budgeted denominator level is 2,000 units.
Units produced total 1,500 units.
Units sold total 1,200 units.
Beginning inventory was zero.
The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.
22) Fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) total ________.
A) $14,400
B) $19,200
C) $24,000
D) 0
23) Fixed manufacturing costs included in ending inventory total ________.
A) $4,800
B) $6,000
C) $3,600
D) 0
24) The production-volume variance is ________.
A) $8,000
B) $6,000
C) $9,600
D) 0
25) Operating income using absorption costing will be ________ than operating income if using variable costing.
A) $9,600 higher
B) $4,800 lower
C) $3,600 higher
D) $14,400 lower
Answer the following questions using the information below:
Veach Corporation incurred fixed manufacturing costs of $6,000 during 2015. Other information for 2015 includes:
The budgeted denominator level is 1,000 units.
Units produced total 750 units.
Units sold total 600 units.
Beginning inventory was zero.
The company uses variable costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.
26) Fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) total ________.
A) $3,600
B) $4,800
C) $6,000
D) 0
27) Fixed manufacturing costs included in ending inventory total ________.
A) $1,200
B) $1,500
C) $900
D) 0
28) The production-volume variance totals ________.
A) $2,000
B) $1,500
C) $2,400
D) 0
29) Operating income using variable costing will be ________ than operating income if using absorption costing.
A) $2,400 higher
B) $2,400 lower
C) $3,600 higher
D) $900 lower
Answer the following questions using the information below:
Jupiter Corporation incurred fixed manufacturing costs of $16,000 during 2015. Other information for 2015 includes:
The budgeted denominator level is 2,000 units.
Units produced total 2,200 units.
Units sold total 1,900 units.
Variable cost per unit is $4.
Beginning inventory is zero.
The fixed manufacturing cost rate is based on the budgeted denominator level.
30) Under absorption costing, fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) total ________.
A) $26,400
B) $22,800
C) $24,000
D) $21,818
