Question :
81. Gage Company reports the following information for its first : 1256601
81. Gage Company reports the following information for its first year of operations:
Units produced this year
7,000 units
Units sold this year
6,500 units
Direct materials
$22 per unit
Direct labor
$30 per unit
Variable overhead
? in total
Fixed overhead
$56,000 in total
If the company’s cost per unit of finished goods using variable costing is $63, what is total variable overhead?A. $21,000B. $71,500C. $77,000D. $19,500E. $16,590
82. A company reports the following information for its first year of operations:
Units produced this year
650 units
Units sold this year
500 units
Direct materials
$750 per unit
Direct labor
$1,000 per unit
Variable overhead
? in total
Fixed overhead
$308,750 in total
If the company’s cost per unit of finished goods using variable costing is $2,375, what is total variable overhead?A. $237,500B. $75,000C. $312,500D. $406,250E. $97,500
83. Magenta Inc. reports the following information for the current year which is its first year of operations:
Units produced this year
750,000 units
Units sold this year
740,000 units
Direct materials
$18.30 per unit
Direct labor
$14.20 per unit
Variable overhead
? in total
Fixed overhead
$4,500,000 in total
If the company’s cost per unit of finished goods using absorption costing is $39.75, what is total variable overhead?A. $925,000B. $877,500C. $937,500.D. $865,800E. $5,437,500
84. A company reports the following information for its first year of operations:
Units produced this year
43,000 units
Units sold this year
39,000 units
Direct materials
$0.57 per unit
Direct labor
$0.83 per unit
Variable overhead
$26,660 in total
Fixed overhead
? in total
If the company’s cost per unit of finished goods using variable costing is $2.02, what is the amount of total fixed overhead?A. $26,660B. $35,690C. $24,510D. Some other amountE. Cannot be determined from the given data.
85. A company reports the following information for its first year of operations:
Units produced this year
? units
Units sold this year
1,500 units
Direct materials
$9 per unit
Direct labor
$5 per unit
Variable overhead
$7 per unit
Fixed overhead
$24,000 in total
If the company’s cost per unit of finished goods using absorption costing is $27, how many units were produced?A. 4,000 units.B. 3,600 units.C. 1,846 units.D. 2,667 units.E. 2,000 units.
86. Romtech Company sold 43,000 units of its product at a price of $300 per unit. Total variable cost per unit is $175, consisting of $168 in variable production cost and $7 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.A. $5,375,000B. $5,676,000C. $12,599,000D. $12,900,000E. $7,525,000
87. Chance, Inc. sold 3,000 units of its product at a price of $72 per unit. Total variable cost per unit is $51, consisting of $32 in variable production cost and $19 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.A. $96,000B. $63,000C. $120,000D. $216,000E. ($90,000)
88. Vision Tester, Inc., a manufacturer of optical glass, began operations on February 1 of the current year. During this time, the company produced 900,000 units and sold 800,000 units at a sales price of $12 per unit. Cost information for this year is shown in the following table:
Production costs
Direct materials
$.80 per unit
Direct labor
$.70 per unit
Variable overhead
$500,000 in total
Fixed overhead
$450,000 in total
Non-production costs
Variable selling and administrative
$30,000 in total
Fixed selling and administrative
$490,000 in total
Given this information, which of the following is true?A. Net income under variable costing will exceed net income under absorption costing by $50,000.B) Net income under absorption costing will exceed net income under variable costing by $50,000.C. Net income will be the same under both absorption and variable costing.D. Net income under variable costing will exceed net income under absorption costing by $60,000.E. Net income under absorption costing will exceed net income under variable costing by $60,000.
Reference: 19_02
Star Services, Inc., a manufacturer of telescopes, began operations on October 1 of the current year. During this time, the company produced 50,000 units and sold 35,000 units at a sales price of $500 per unit. Cost information for this year is shown in the following table:
Production costs
Direct materials
$85 per unit
Direct labor
$65 per unit
Variable overhead
$200,000 in total
Fixed overhead
$350,000 in total
Nonproduction costs
Variable selling and administrative
$90,000 in total
Fixed selling and administrative
$500,000 in total
89. Given the Star Services, Inc. data, what is net income using absorption costing?A. $18,670,000B. $18,774,000C. $16,360,000D. $11,275,000E. $11,170,000
90. Given the Star Services Inc. data, what is net income using variable costing?A. $18,670,000B. $18,774,000C. $16,360,000D. $11,274,000E. $11,170,000
Reference: 19_03
Scavenger Company, a manufacturer of recycling bins, began operations on January 1 of the current year. During this time, the company produced 60,000 units and sold 55,000 units at a sales price of $15 per unit. Cost information for this year is shown in the following table:
Production costs
Direct materials
$2.50 per unit
Direct labor
$3.00 per unit
Variable overhead
$45,000 in total
Fixed overhead
$240,000 in total
Nonproduction costs
Variable selling and administrative
$10,000 in total
Fixed selling and administrative
$50,000 in total
