Question : 100.A company reports the following information for its first year : 1258583

 

100.A company reports the following information for its first year of operations: 

Units produced this year650 units

Units sold this year500 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 variableA.               $237,500

B. $75,000

C. $312,500

D. $406,250

E. $97,500

101.Magenta Inc. reports the following information for the current year which is its first year of operations: 

Units produced this year750,000 units

Units sold this year740,000 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. $925,000

B. $877,500

C. $937,500

D. $865,800

E. $5,437,500

102.A company reports the following information for its first year of operations: 

Units produced this year43,000 units

Units sold this year39,000 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. $26,660

B. $35,690

C. $24,510

D. Some other amount

E. Cannot be determined from the given data.

103.A company reports the following information for its first year of operations: 

Units produced this year? units

Units sold this year1,500 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.

104.Accurate Metal Company sold 32,000 units of its product at a price of $250 per unit. Total variable cost per unit is $155, consisting of $145 in variable production cost and $5 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.    

A. $8,000,000

B. $4,960,000

C. $4,800,000

D. $3,360,000

E. $3,200,000

105.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. $96,000

B. $63,000

C. $120,000

D. $216,000

E. ($90,000)

106.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$0.80 per unit

Direct labor$0.70 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.

100,000 units × ($450,000/900,000 FOH) = $50,000 inventoried under absorption and expensed under variable costing.

107.Given the Galaxy, Inc. data, what is net income using absorption costing?    

A. $11,275,000

B. $17,400,000

C. $16,360,000

D. $16,800,000

E. $16,220,000

108.Given the Galaxy Inc. data, what is net income using variable costing?    

A. $16,220,000

B. $17,400,000

C. $16,360,000

D. $11,275,000

E. $16,800,000

109.Brush Industries reports the following information for May: 

Sales$900,000

Fixed cost of goods sold100,000

Variable cost of goods sold250,000

Fixed selling and administrative costs100,000

Variable selling and administrative costs125,000

A. $650,000

B. $325,000

C. $525,000

D. $550,000