Question :
71. Which of the following descriptions would not be found an : 1291703
71. Which of the following descriptions would not be found on an income statement prepared using variable costing? A. SalesB. Fixed costsC. Cost of goods soldD. Net operating income
72. Which of the following line descriptions would not be found on an income statement prepared using absorption costing? A. SalesB. Contribution marginC. Cost of goods soldD. Net operating income
73. Assuming the number of units sold and produced are the same, which of the following statements is true when comparing net operating income using absorption and variable costing? A. Absorption costing will yield a higher net operating income.B. Variable costing will yield a higher net operating income.C. Net operating income will be the same under both methods.D. Variable costing will have higher sales revenue.
74. Assuming that the number of units produced is greater than the number of units sold, which of the following statements is true when comparing net operating income using absorption and variable costing? A. Absorption costing will yield a higher net operating income.B. Variable costing will yield a higher net operating income.C. Net operating income will be the same under both methods.D. Sales revenue will be less using absorption costing.
75. Assuming that the number of units produced is less than the number of units sold, which of the following statements is true when comparing net operating income using absorption and variable costing? A. Absorption costing will yield a higher net operating income.B. Variable costing will yield a higher net operating income.C. Net operating income will be the same under both methods.D. The sales price per unit will be less using absorption costing.
76. Tyson Manufacturing has the following information available for 2012:
Direct materials
$6.00 per unit
Direct labor
$2.00 per unit
Variable manufacturing overhead
$1.50 per unit
Variable selling and administrative costs
$3.00 per unit
Fixed manufacturing overhead
$40,000
Fixed selling and administrative costs
$50,000
During 2012, Tyson produced 10,000 units out of which 9,100 units were sold for $50 each.Refer to the information provided for Tyson Manufacturing. What is the net operating income under variable costing? A. $251,250B. $254,850C. $285,000D. $291,250
77. Tyson Manufacturing has the following information available for 2012:
Direct materials
$6.00 per unit
Direct labor
$2.00 per unit
Variable manufacturing overhead
$1.50 per unit
Variable selling and administrative costs
$3.00 per unit
Fixed manufacturing overhead
$40,000
Fixed selling and administrative costs
$50,000
During 2012, Tyson produced 10,000 units out of which 9,100 units were sold for $50 each.Refer to the information provided for Tyson Manufacturing. What is the net operating income under absorption costing? A. $251,250B. $254,850C. $285,000D. $299,850
78. Cornell Products has the following information available for 2012:
Direct materials
$1.00 per unit
Direct labor
$2.00 per unit
Variable manufacturing overhead
$1.50 per unit
Variable selling and administrative costs
$ .50 per unit
Fixed manufacturing overhead
$30,000
Fixed selling and administrative costs
$25,000
During 2012, Cornell produced 6,000 units out of which 5,400 units were sold for $20 each.Refer to the information provided for Cornell Products. What is the net operating income under variable costing? A. $35,000B. $29,000C. $26,000D. $23,000
79. Cornell Products has the following information available for 2012:
Direct materials
$1.00 per unit
Direct labor
$2.00 per unit
Variable manufacturing overhead
$1.50 per unit
Variable selling and administrative costs
$ .50 per unit
Fixed manufacturing overhead
$30,000
Fixed selling and administrative costs
$25,000
During 2012, Cornell produced 6,000 units out of which 5,400 units were sold for $20 each.Refer to the information provided for Cornell Products. What is the net operating income under absorption costing? A. $23,000B. $29,000C. $26,000D. $35,000
80. B & B Manufacturing produces a single product. Last year, the company produced 10,000 units out of which 9,500 were sold. There were no units in beginning inventory. The company had the following costs:
Variable costs per unit:
Production
$6.00
Selling and administrative
$2.00
Fixed costs (total):
Production
$15,000
Selling and administrative
$10,000
Refer to the information provided for B & B Manufacturing. What is the unit product cost using variable costing? A. $ 8.00B. $ 6.00C. $ 7.50D. $10.50
81. B & B Manufacturing produces a single product. Last year, the company produced 10,000 units out of which 9,500 were sold. There were no units in beginning inventory. The company had the following costs:
Variable costs per unit:
Production
$6.00
Selling and administrative
$2.00
Fixed costs (total):
Production
$15,000
Selling and administrative
$10,000
Refer to the information provided for B & B Manufacturing. What is the unit product cost using absorption costing? A. $ 8.00B. $ 6.00C. $ 7.50D. $10.50
82. Lockhart Products produces a single product. During 2012 the company incurred the following costs:
Variable product costs
$8.00 per unit
Variable period costs
$2.00 per unit
Total fixed product costs
$21,000
Total fixed period costs
$10,000
Lockhart had no units in beginning inventory. During 2012, 6,000 units were produced and 5,000 units were sold. Which of the following statements is true when comparing net operating income using absorption versus variable costing? A. Net operating income will be $3,500 higher using absorption costing than using variable costing.B. Net operating income will be $3,500 lower using absorption costing than using variable costing.C. Net operating income will be $4,200 higher using absorption costing than using variable costing.D. Net operating income will be $4,200 lower using absorption costing than using variable costing.
83. Which of the following statements is true regarding variable costing? A. Variable costing is also known as full costing.B. Per unit contribution margin is affected by production levels in variable costing.C. In a variable costing income statement, fixed costs are separated from variable costs.D. Variable costing focuses attention on all product costs and not only relevant product costs.
