Question :
130.Wind Fall, a manufacturer of leaf blowers, began operations this : 1258586
130.Wind Fall, a manufacturer of leaf blowers, began operations this year. During this year, the company produced 10,000 leaf blowers and sold 8,500. At year-end the company reported the following income statement using absorption costing:
Cost of goods sold (8,500 × $20) 170,000
Gross margin$212,500
Selling and administrative expenses 60,000
Net income$152,500
Production costs per leaf blower total $20, which consists of $16 in variable production costs and $4 in fixed production costs (based on the 10,000 units produced). Fifteen percent of total selling and administrative expenses are variable. Compute net income under variable costing.
A. $146,500
B. $158,500
C. $237,500
D. $206,500
E. $246,500
131.Aces, Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. At year-end, the company reported the following income statement using absorption costing.
Sales (4,900 × $90)$441,000
Cost of goods sold (4,900 × $38) 186,200
Gross margin$254,800
Selling and administrative expenses 75,000
Net Income$179,800
Production costs per tennis racket total $38, which consists of $25 in variable production costs and $13 in fixed production costs (based on the 6,000 units produced). Ten percent of total selling and administrative expenses are variable. Compute net income under variable costing.
A. $194,100
B. $165,500
C. $311,000
D. $240,500
E. $233,000
132.Jeter Corporation had net income of $212,000 based on variable costing. Beginning and ending inventories were 6,000 units and 10,000 units, respectively. Assume the fixed overhead per unit was $4 for both the beginning and ending inventory. What is net income under absorption costing?
A. $252,000
B. $228,000
C. $244,000
D. $276,000
E. $212,000
133.Kluber, Inc. had net income of $900,000 based on variable costing. Beginning and ending inventories were 55,000 units and 52,000 units, respectively. Assume the fixed overhead per unit was $1.25 for both the beginning and ending inventory. What is net income under absorption costing?
A. $833,125
B. $903,750
C. $966,875
D. $896,250
E. $900,000
134.Pact Company had net income of $972,000 based on variable costing. Beginning and ending inventories were 7,800 units and 5,200 units, respectively. Assume the fixed overhead per unit was $3.61 for both the beginning and ending inventory. What is net income under absorption costing?
A. $962,614
B. $1,018,923
C. $925,077
D. $969,400
E. $981,379
135.Front Company had net income of $72,500 based on variable costing. Beginning and ending inventories were 800 units and 1,200 units, respectively. Assume the fixed overhead per unit was $7.90 for both the beginning and ending inventory. What is net income under absorption costing?
A. $69,340
B. $75,660
C. $88,300
D. $56,700
E. $72,900
136.Given the following data, calculate product cost per unit under variable costing.
Direct labor$8 per unit
Direct materials$3 per unit
Overhead
Total variable overhead$30,000
Total fixed overhead$85,000
Expected units to be produced50,000 units
A. $7 per unit
B. $13.30 per unit
C. $11.00 per unit
D. $11.60 per unit
E. $16.50 per unit
137.Given the following data, calculate product cost per unit under absorption costing.
Direct labor$7 per unit
Direct materials$1 per unit
Overhead
Total variable overhead$20,000
Total fixed overhead$90,000
Expected units to be produced40,000 units
A. $8 per unit
B. $8.50 per unit
C. $10.25 per unit
D. $10.75 per unit
E. $12 per unit
138.Given the following data, calculate the total product cost per unit under variable costing.
Direct labor$3.50 per unit
Direct materials$1.25 per unit
Overhead
Total variable overhead$41,400
Total fixed overhead$150,000
Expected units to be produced18,000 units
A. $4.75 per unit
B. $7.05 per unit
C. $15.38 per unit
D. $13.08 per unit
E. $16 per unit
139.Given the following data, calculate the total product cost per unit under absorption costing.
Direct labor$3.50 per unit
Direct materials$1.25 per unit
Overhead
Total variable overhead$41,400
Total fixed overhead$150,000
Expected units to be produced18,000 units
A. $4.75 per unit
B. $7.05 per unit
C. $13.08 per unit
D. $15.38 per unit
E. $16 per unit
