Question :
96. A business operated at 100% of capacity during its first : 1226952
96. A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (5,000 units):
Direct materials
$70,000
Direct labor
20,000
Variable factory overhead
10,000
Fixed factory overhead
2,000
$102,000
Operating expenses:
Variable operating expenses
$17,000
Fixed operating expenses
1,000
18,000
If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement? A. $50,400B. $70,000C. $52,000D. $68,400
97. A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (10,000 units):
Direct materials
$140,000
Direct labor
40,000
Variable factory overhead
20,000
Fixed factory overhead
4,000
$204,000
Operating expenses:
Variable operating expenses
$ 34,000
Fixed operating expenses
2,000
36,000
If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what is the amount of the manufacturing margin that would be reported on the variable costing income statement? A. $104,000B. $106,000C. $140,000D. $114,800
98. A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (5,000 units):
Direct materials
$70,000
Direct labor
20,000
Variable factory overhead
10,000
Fixed factory overhead
2,000
$102,000
Operating expenses:
Variable operating expenses
$17,000
Fixed operating expenses
1,000
18,000
If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what is the amount of the manufacturing margin that would be reported on the absorption costing income statement? A. $50,000B. $54,000C. not reportedD. $70,000
99. A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (5,000 units):
Direct materials
$70,000
Direct labor
20,000
Variable factory overhead
10,000
Fixed factory overhead
2,000
$102,000
Operating expenses:
Variable operating expenses
$17,000
Fixed operating expenses
1,000
18,000
If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what is the amount of the contribution margin that would be reported on the variable costing income statement? A. $51,400B. $52,000C. $54,000D. $53,000
100. A business operated at 100% of capacity during its first month, with the following results:
Sales (160 units)
$160,000
Production costs (200 units):
Direct materials
$100,000
Direct labor
20,000
Variable factory overhead
10,000
Fixed factory overhead
4,000
134,000
Operating expenses:
Variable operating expenses
$ 12,000
Fixed operating expenses
2,000
14,000
What is the amount of the manufacturing margin that would be reported on the variable costing income statement? A. $30,000B. $38,000C. $56,000D. $44,000
101. A business operated at 100% of capacity during its first month, with the following results:
Sales (90 units)
$90,000
Production costs (100 units):
Direct materials
$40,000
Direct labor
20,000
Variable factory overhead
2,000
Fixed factory overhead
5,000
67,000
Operating expenses:
Variable operating expenses
$ 8,000
Fixed operating expenses
1,000
9,000
What is the amount of the contribution margin that would be reported on the variable costing income statement? A. $34,200B. $20,200C. $29,700D. $26,200
102. A business operated at 100% of capacity during its first month, with the following results:
Sales (90 units)
$90,000
Production costs (100 units):
Direct materials
$40,000
Direct labor
20,000
Variable factory overhead
2,000
Fixed factory overhead
5,000
67,000
Operating expenses:
Variable operating expenses
$ 8,000
Fixed operating expenses
1,000
9,000
What is the amount of the income from operations that would be reported on the variable costing income statement? A. $20,700B. $20,200C. $22,000D. $26,200
103. A business operated at 100% of capacity during its first month, with the following results:
Sales (90 units)
$90,000
Production costs (100 units):
Direct materials
$40,000
Direct labor
20,000
Variable factory overhead
2,000
Fixed factory overhead
5,000
67,000
Operating expenses:
Variable operating expenses
$ 8,000
Fixed operating expenses
1,000
9,000
What is the amount of the income from operations that would be reported on the absorption costing income statement? A. $21,000B. $20,700C. $22,200D. $29,700
104. A business operated at 100% of capacity during its first month, with the following results:
Sales (90 units)
$90,000
Production costs (100 units):
Direct materials
$40,000
Direct labor
20,000
Variable factory overhead
2,000
Fixed factory overhead
5,000
67,000
Operating expenses:
Variable operating expenses
$ 8,000
Fixed operating expenses
1,000
9,000
What is the amount of the gross profit that would be reported on the absorption costing income statement? A. $26,200B. $20,700C. $29,700D. $22,000
105. Accountants prefer the variable costing method over absorption costing method for evaluating the performance of a company because A. by using the absorption costing method, income could appear to be higher by producing more inventory.B. by using the absorption method, more sales will be generated. C. by using the variable costing method, the cost of goods sold will be higher as more units are manufactured and sales remain the same.D. by using the variable costing method, all fixed and variable costs are included in the unit cost of the product manufactured.
