Q11 Which of the following statements is true? Answer Expenses are not usually s
ID: 2357569 • Letter: Q
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Q11 Which of the following statements is true? Answer Expenses are not usually separated into variable and fixed elements in externally reported income statements. Even if there is no change in units sold, selling price, or cost structure, a company can increase its absorption costing net operating income from one year to the next just by producing more units. When finished goods inventory decreases during a period, a manufacturing company's absorption costing net operating income for that period will usually be greater than its variable costing net operating income. Both A and B above. 30 points Question 12 Ross Company produces a single product. The company has direct materials costs of $8 per unit, direct labor costs of $6 per unit, and manufacturing overhead of $10 per unit. Sixty percent of the manufacturing overhead is for fixed costs. In addition, variable selling and administrative costs are $2 per unit, and fixed selling and administrative costs are $3 per unit at the current activity level. Assume that direct labor is a variable cost. Under absorption costing, the unit product cost is: Answer $24 $20 $26 $29 30 points Question 13 Bauxar Company, which has only one product, has provided the following data concerning its most recent month of operations: What is the unit product cost for the month under absorption costing? Answer $66 $51 $60 $75 30 points Question 14 Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: There were no beginning or ending inventories. The unit product cost under absorption costing was: Answer $93 $97 $136 $194 30 points Question 15 Kiefer Company, which has only one product, has provided the following data concerning its most recent month of operations: The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. What is the net operating income for the month under absorption costing? Answer $11,600 $6,800 $29,200 $9,600 30 points Question 16 Eldrick Company, which has only one product, has provided the following data concerning its most recent month of operations: What is the net operating income for the month under absorption costing? Answer $17,600 $10,100 $15,000 $2,600 30 points Question 17 Ilford Company, which has only one product, has provided the following data concerning its most recent month of operations: What is the net operating income for the month under variable costing? Answer $1,200 $5,700 $6,900 $(18,000) 30 points Question 18 Dewiel Corporation manufactures a variety of products. The following data pertain to the company's operations over the last two years: What was the absorption costing net operating income last year? Answer $90,900 $96,900 $84,900 $92,100 30 points Question 19 Rosal Corporation manufactures a variety of products. Variable costing net operating income was $74,700 last year and was $82,300 this year. Last year, ending inventory increased by 2,600 units. This year, ending inventory decreased by 1,400 units. Fixed manufacturing overhead cost is $5 per unit. What was the absorption costing net operating income last year? Answer $61,700 $74,700 $80,700 $87,700 30 points Question 20 Kaighn Corporation has two divisions: the West Division and the East Division. The corporation's net operating income is $18,500. The West Division's divisional segment margin is $27,700 and the East Division's divisional segment margin is $49,400. What is the amount of the common fixed expense not traceable to the individual divisions? Answer $46,200 $67,900 $77,100 $58,600Explanation / Answer
Expenses are not usually separated into variable and fixed elements in externally reported income statements. $24 $60 $97 $9,600 $10,100 $6,900 $90,900 $74,700 $46,200
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