Question : Objective 9.2 1) The contribution-margin format used for ________. A) variable costing : 1212190

 

Objective 9.2

 

1) The contribution-margin format is used for ________.

A) variable costing income statement

B) mixed costing income statement

C) absorption costing income statement

D) job order costing income statement

2) The gross-margin format is used for ________.

A) variable costing income statement

B) mixed costing income statement

C) absorption costing income statement

D) standard costing income statement

 

3) Which of the following statements is true of contribution-margin format of the income statement?

A) It is used for absorption costing.

B) It highlights the lump sum of fixed manufacturing costs.

C) It distinguishes manufacturing costs from nonmanufacturing costs.

D) It calculates gross margin.

 

4) Which of the following statements is true of gross-margin format of the income statement?

A) It distinguishes between manufacturing and nonmanufacturing costs.

B) It distinguishes variable costs from fixed costs.

C) It is used for variable costing.

D) It calculates the contribution margin from sales.

 

5) ________ is subtracted from sales while calculating contribution margin.

A) Direct labor in factory

B) Rent on factory building

C) Rent on the headquarter?s building

D) Sales commission on incremental sales

 

6) ________ are subtracted from sales to calculate gross margin.

A) Variable manufacturing costs

B) Fixed administrative costs

C) Variable administrative costs

D) Fixed selling costs

Zahra’s Decoratives produces and sells a decorative pillow for $97.50 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:

 

Variable manufacturing costs              $22.10 per unit

Variable marketing costs              $  3.90 per unit

Fixed manufacturing costs              $13.00 per unit

Administrative expenses, all fixed              $19.50 per unit

Ending inventories:

Direct materials-0-

WIP-0-

Finished goods250 units

 

7) What is cost of goods sold per unit using variable costing?

A) $22.10

B) $26

C) $39

D) $58.50

 

8) What is cost of goods sold using variable costing?

A) $38,675

B) $35,000

C) $44,200

D) $52,000

 

9) What is the contribution margin using variable costing?

A) $118,625

B) $125,125

C) $126,425

D) $135,625

10) What is the operating income using variable costing?

A) $125,125

B) $85,125

C) $65,000

D) $60,125

 

Jean Peck’s Furniture’s manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $300 after negotiations. In the month of January, it manufactures 3,000 tables and sells 2,250 tables. Actual fixed costs are the same as the amount fixed costs budgeted for the month.

 

The following information is provided for the month of January:

 

Variable manufacturing costs$120 per unit

Fixed manufacturing costs$90,000 per month

Fixed Administrative expenses$25,000 per month

 

At the end of the month Jean Peck’s Furniture’s has an ending inventory of finished goods of 750 units. The company also incurs a sales commission of $10 per unit.

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more