36.Sticker Creations’ fixed manufacturing overhead costs totaled $68,000 and its variable selling costs totaled $45,000. Under full costing, how should these costs be classified?
Period CostsProduct Costs
A. $68,000 $45,000
B. $113,000 $0
C. $0 $113,000
D. $45,000 $68,000
37.Diecast Tools’ manufacturing costs for 2014 are as follows:
Direct materials $100,000
Direct labor 120,000
Depreciation of factory equipment 30,000
Production supervisor’s salary 72,000
Other fixed manufacturing overhead 50,000
What amount should be considered product costs for external reporting purposes?
A.$220,000
B.$293,000
C.$402,000
D.$372,000
38.Robley Company’s fixed manufacturing overhead costs totaled $235,000 and fixed corporate operating costs totaled $116,000. Under full costing, how should these costs be classified?
Period CostsProduct Costs
A. $235,000 $116,000
B. $0 $351,000
C. $351,000 $0
D. $116,000 $235,000
39.Cold City Blowers produces snow blowers. The selling price per snow blower is $80. Costs involved in production are:
Direct material per unit $ 22
Direct labor per unit 15
Variable manufacturing overhead per unit 6
Fixed manufacturing overhead per year 206,400
In addition, the company has fixed selling and administrative costs of $88,000 per year. During the year, Cold City Blowers produced 8,600 snow blowers and sold 8,000 snow blowers. There is no beginning inventory. Ignoring taxes, how much will full costing net income differ from variable costing net income?
A.$15,480
B.$14,400
C.$206,400
D.$192,000
40.Which of the following items appears on a variable costing income statement but not on a full costing income statement?
A.Sales
B.Gross margin
C.Net income
D.Contribution margin
41.Variable costing income is a function of
A.only units sold.
B.only units produced.
C.both units sold and units produced.
D.neither units sold nor units produced.
42.Which of the following items on a variable costing income statement will change in direct proportion to a change in sales?
A.Sales, contribution margin, and net income
B.Sales, variable costs, and contribution margin
C.Sales, variable costs, contribution margin, fixed costs, and net income
D.Sales, variable costs, and fixed costs
43.If a company’s income is positive and fixed costs exist, which of the following items will increase or decrease at a greater rate than the change in the amount of sales on a variable costing income statement?
A.Variable costs
B.Fixed costs
C.Contribution margin
D.Net income
44.Ranger Productions experienced the following costs in 2014:
Direct materials$1.50 per unit
Direct labor$2.60 per unit
Variable manufacturing overhead$1.20 per unit
Variable selling costs$4.40 per unit
Fixed manufacturing overhead$84,000
Fixed selling costs$32,000
Fixed administrative costs$15,000
During 2014, the company manufactured 65,000 units and sold 62,000 units. The unit cost is the same throughout the year. Beginning inventory is zero. How much will the company report as total variable product costs on its 2014 contribution income statement?
A.$328,600
B.$601,400
C.$344,500
D.$630,500
45.Anders Supply experienced the following costs in May:
Direct materials$6.50 per unit
Direct labor$2.20 per unit
Manufacturing overhead costs
Variable$3.10 per unit
Fixed$44,000
Selling & administrative costs
Variable selling costs$1.50 per unit
Fixed selling costs$21,000
Fixed administrative costs$16,000
During May, the company manufactured 22,000 units and sold 24,000 units. Beginning inventory totaled 3,400 units. If the average selling price per unit was $28, how much is the company’s contribution margin?
A.$327,400
B.$352,800
C.$323,400
D.$344,800
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