Question : 46.Roger Excavating Company experienced the following costs in 2014: Direct materials$1.75 : 1302747

 

 

46.Roger Excavating Company experienced the following costs in 2014:

 

Direct materials$1.75 per unit

Direct labor$2.00 per unit

Variable manufacturing overhead$2.50 per unit

Variable selling$0.75 per unit

Fixed manufacturing overhead$50,000

Fixed selling$15,000

Fixed administrative$5,000

 

During 2014, the company manufactured 100,000 units and sold 80,000 units. If the average selling price per unit was $22.65, what is the amount of the company’s contribution margin per unit?

A.$16.40

B.$15.65

C.$18.90

D.$13.65

47.Data from Rannier Metals for 2014 is as follows:

 

Sales$20 per unit

Variable cost of goods sold??

Fixed manufacturing overhead$85,000

Variable selling & administrative costs??

Fixed selling & administrative costs$150,000

 

The company produced 145,000 units during the year and sold 130,000 units. Variable production costs per unit and fixed costs have remained constant all year. Net income for the year was $1,000,000. How much was the company’s contribution margin?

A.$765,000

B.$1,235,000

C.$1,365,000

D.Not enough information is provided to determine the answer

 

48.During the past year, Waxman Electronics manufactured 25,000 speakers during 2014 and sold 26,000 speakers. Production costs during the year were as follows:

 

Fixed manufacturing overhead$546,000

Variable manufacturing overhead234,000

Direct labor312,000

Direct materials780,000

 

Sales totaled $3,120,000, variable selling and administrative costs totaled $182,000, and fixed selling and administrative costs totaled $114,000. There were 2,200 speakers in beginning inventory. How much is the contribution margin per unit?

A.$48.00

B.$69.00

C.$62.00

D.None of these answer choices are correct.

 

49.Cold City Blowers produces snow blowers. The selling price per snow blower is $100. 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              23,400

 

In addition, the company has fixed selling and administrative costs of $9,360 per year. During the year, Cold City Blowers produced 780 snow blowers and sold 800 snow blowers. Beginning inventory consisted of 50 snow blowers. How much is variable cost of goods sold?

A.$34,400

B.$33,540

C.$29,600

D. None of these answer choices are correct.

 

50.Cold City Blowers produces snow blowers. The selling price per snow blower is $100. 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              23,400

 

In addition, the company has fixed selling and administrative costs of $9,360 per year. During the year, Cold City Blowers produced 780 snow blowers and sold 800 snow blowers. Beginning inventory consisted of 50 snow blowers. How much is net income using variable costing?

A.$11,700

B.$12,240

C.$12,840

D.$45,600

 

51.The following information relates to Charlin Industries for the year ending December 31, 2014, the company’s first year of operations:

 

Units produced              100,000

Units sold              80,000

Units in ending inventory              20,000

Fixed manufacturing overhead              $650,000

 

How much fixed manufacturing overhead would be expensed in 2014 using variable costing?

A.$520,000

B.$130,000

C.$650,000

D.$0

 

52.Sol Enterprises’ contribution income statement utilizing variable costing appears below:

 

Sol Enterprises

Income Statement

For the Year ended December 31, 2014

Sales ($12 per unit)              $240,000

Less variable costs:

Cost of goods sold$100,000

Selling & administrative costs                  18,000                118,000

Contribution margin                            122,000

Less fixed costs:

Manufacturing overhead              60,900

Selling & administrative costs                 15,000                75,900

Net income              $  46,100

 

Sol produced 21,000 units during the year. Variable costs per unit and fixed production costs have remained constant the entire year. There were no beginning inventories. How much is the dollar value of the ending inventory using variable costing?

A.$5,000

B.$7,900

C.$8,800

D.$2,900

53.Acosta Supplies experienced the following costs in 2014:

 

Direct materials$1.50 per unit

Direct labor$4.50 per unit

Variable manufacturing overhead$2.00 per unit

Variable selling$1.00 per unit

Fixed manufacturing overhead$70,000

Fixed selling and administrative$80,000

 

During 2014, the company manufactured 4,000 units and sold 4,200 units. Assume the same unit costs in all years. Beginning inventory consists of 800 units. How much are total variable costs on the company’s 2014 contribution margin income statement?

A.$37,800

B.$36,000

C.$33,600

D.$32,000

 

54.Beiber Boxers contribution income statement utilizing variable costing for 2014 appears below:

 

Sales ($12 per unit)              $78,000

Less variable costs:

Cost of goods sold$26,000

Selling & administrative                  9,750              35,750

Contribution margin                            42,250

Less fixed costs:

Manufacturing overhead              12,600

Selling & administrative costs              14,950                 27,550

Net income              $ 14,700

 

The company produced 7,000 units during the year. Variable and fixed production costs have remained constant the entire year. There were no beginning inventories. How much is the dollar value of the ending inventory using full costing?

A.$2,000

B.$2,900

C.$3,850

D. None of these answer choices are correct.

 

55.When the number of units sold is equal to the number of units produced, the net income using absorption costing will be

A.greater than net income using variable costing.

B.equal to net income using variable costing.

C.less than net income using variable costing.

D.None of the answer choices is always correct.