Question :
101. Assuming that the number of units produced greater than the : 1295602
101. 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 income using absorption and variable costing? A. Absorption costing will yield a higher net income.B. Variable costing will yield a higher net income.C. Net income will be the same under both methods.D. Sales revenue will be less using absorption costing.
102. 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 income using absorption and variable costing? A. Absorption costing will yield a higher net income.B. Variable costing will yield a higher net income.C. Net income will be the same under both methods.D. The sales price per unit will be less using absorption costing.
103. Tyson Manufacturing has the following cost information available for 2006:
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 2006, Tyson produced 10,000 units out of which 9,100 units were sold for $50 each. Refer to the Tyson Manufacturing information above. What is net income under variable costing? A. $251,250B. $254,850C. $285,000D. $291,250
104. Tyson Manufacturing has the following cost information available for 2006:
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 2006, Tyson produced 10,000 units out of which 9,100 units were sold for $50 each. Refer to the Tyson Manufacturing information above. What is net income under absorption costing? A. $251,250B. $254,850C. $285,000D. $299,850
105. Cornell Products has the following cost information available for 2006:
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 2006, Cornell produced 6,000 units out of which 5,400 units were sold for $20 each. Refer to the Cornell Products information above. What is net income under variable costing? A. $35,000B. $29,000C. $26,000D. $23,000
106. Cornell Products has the following cost information available for 2006:
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 2006, Cornell produced 6,000 units out of which 5,400 units were sold for $20 each. Refer to the Cornell Products information above. What is net income under absorption costing? A. $23,000B. $29,000C. $26,000D. $35,000
107. 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 B & B Manufacturing information above. What is the unit product cost using variable costing? A. $ 8.00B. $ 6.00C. $ 7.50D. $10.50
108. 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 B & B Manufacturing information above. What is the unit product cost using absorption costing? A. $ 8.00B. $ 6.00C. $ 7.50D. $10.50
109. Lockhart Products produces a single product. During 2006 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 2006, 6,000 units were produced and 5,000 units were sold. Which of the following statements is true when comparing net income using absorption versus variable costing? A. Net income will be $3,500 higher using absorption costing than using variable costing.B. Net income will be $3,500 lower using absorption costing than using variable costing.C. Net income will be $4,200 higher using absorption costing than using variable costing.D. Net income will be $4,200 lower using absorption costing than using variable costing.
