Item 9 Helmers Corporation manufactures a single product. Variable costing net o

Question

Item 9

Helmers Corporation manufactures a single product. Variable costing net operating income last year was $94,000 and this year was $112,700. Last year, $35,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $13,300 in fixed manufacturing overhead costs were deferred in inventory under absorption costing.

What was the absorption costing net operating income last year?

Multiple Choice

Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $380,000, variable expenses of $205,000, and traceable fixed expenses of $45,000. During the same month, the West business segment had sales revenues of $1,050,000, variable expenses of $536,000, and traceable fixed expenses of $201,000. The common fixed expenses totaled $310,000 and were allocated as follows: $155,000 to the East business segment and $155,000 to the West business segment.

The contribution margin of the West business segment is:

Multiple Choice

$514,000

$(23,000)

$705,000

$130,000

Explanation / Answer

9.C.$59,000.

8b.A.$514,000.

contribution margin of west business segment:

variable costing , net income 94,000 add:fixed manufacturing overhead deferred last year nil less:fixed manufacturing overhead released last year (35,000) absorption costing net operating income 59,000

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