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
