Question : 91. Given the Scavenger Company data, what net income using : 1256602

 

 

91. Given the Scavenger Company data, what is net income using absorption costing?A.  $201,250B.  $181,250C.  $150,000D.  $177,600E.  $276,250

 

 

92. Given the Scavenger Company data, what is net income using variable costing?A.  $201,250B.  $181,250C.  $150,000D.  $177,600E.  $276,250

 

 

 

 

 

 

 

Reference: 19_04

Cool Pools, a manufacturer of above ground pools, began operations on January 1 of the current year. During this time, the company produced 45,000 units and sold 44,000 units at a sales price of $60 per unit. Cost information for this year is shown in the following table: 

Production costs

 

Direct materials

$11.25 per unit

Direct labor

$3.20 per unit

Variable overhead

$315,000 in total

Fixed overhead

$39,600 in total

Nonproduction costs

 

Variable selling and administrative

$ 2,000 in total

Fixed selling and administrative

$ 6,000 in total

 

 

93. Given the Cool Pools Company data, what is net income using absorption costing?A.  $1,649,480B.  $1,648,600C.  $1,627,150D.  $1,709,480E.  $1,708,600

 

 

94. Given the Cool Pools Company data, what is net income using variable costing?A.  $1,649,480B.  $1,648,600C.  $1,627,150D.  $1,709,480E.  $1,708,600

 

 

95. Sindler Corporation sold 3,000 units of its product at a price of $13 per unit. Total variable cost per unit is $7.50, consisting of $6.80 in variable production cost and $.70 in variable selling and administrative cost. Compute contribution margin for the company.A.  $39,000B.  $22,500C.  $16,500D.  $18,600E.  $36,900

 

 

96. Branwin Corporation sold 7,200 units of its product at a price of $35.60 per unit. Total variable cost per unit is $17.55, consisting of $10.50 in variable production cost and $7.05 in variable selling and administrative cost. Compute contribution margin for the company.A.  $256,320B.  $126,360C.  $50,760D.  $129,960E.  $180,720

 

 

97. Swisher, Incorporated reports the following annual cost data for its single product: 

Normal production level

30,000 units

Direct materials

$6.40 per unit

Direct labor

$3.93 per unit

Variable overhead

$5.80 per unit

Fixed overhead

$150,000 in total

This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company’s gross margin increase or decrease under absorption costing?A. $60,000 decrease.B. $90,000 decrease.C. There is no change in gross margin.D. $90,000 increase.E. $60,000 increase.

 

 

 

 

 

 

 

 

 

 

 

98. Swisher, Incorporated reports the following annual cost data for its single product: 

Normal production level

30,000 units

Direct materials

$6.40 per unit

Direct labor

$3.93 per unit

Variable overhead

$5.80 per unit

Fixed overhead

$150,000 in total

This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company’s gross margin increase or decrease under variable costing?A.  $60,000 decrease.B.  $90,000 decrease.C.  There is no change in gross margin.D.  $90,000 increase.E.  $60,000 increase.

 

 

99. Swola Company reports the following annual cost data for its single product. 

Normal production level

75,000 units

Direct materials

$1.25 per unit

Direct labor

$2.50 per unit

Variable overhead

$3.75 per unit

Fixed overhead

$300,000 in total

This product is normally sold for $25 per unit. If Swola increases its production to 200,000 units, while sales remain at the current 75,000 unit level, by how much would the company’s gross margin increase or decrease under absorption costing?A.  $187,500 increase.B.  $112,500 increase.C.  There will be no change in gross margin.D.  $112,500 decrease.E.  $187,500 decrease.

 

 

100. Swola Company reports the following annual cost data for its single product. 

Normal production level

75,000 units

Direct materials

$1.25 per unit

Direct labor

$2.50 per unit

Variable overhead

$3.75 per unit

Fixed overhead

$300,000 in total

This product is normally sold for $25 per unit. If Swola increases its production to 200,000 units, while sales remain at the current 75,000 unit level, by how much would the company’s gross margin increase or decrease under variable costing?A.  $187,500 increase.B.  $112,500 increase.C.  There will be no change in gross margin.D.  $112,500 decrease.E.  $187,500 decrease.

 

 

 

 

 

 

Reference: 19_05

 

Red and White Company reported the following monthly data:

Units produced

2,000 units

Sales price

$25 per unit

Direct materials

$1 per unit

Direct labor

$2 per unit

Variable overhead

$3 per unit

Fixed overhead

$8,000 in total