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.