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11. A manufacturing company that produces a single product has provided the foll

ID: 2420553 • Letter: 1

Question

11.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Variable costs per unit:

Fixed costs:


What is the variable costing unit product cost for the month?

$106 per unit

$127 per unit

$99 per unit

$117 per unit

12.

Olds Inc., which produces a single product, has provided the following data for its most recent month of operations:

$159 per unit

$205 per unit

$166 per unit

$292 per unit

13.

A company produces a single product. Variable production costs are $12.5 per unit and variable selling and administrative expenses are $3.5 per unit. Fixed manufacturing overhead totals $41,000 and fixed selling and administration expenses total $45,000. Assuming a beginning inventory of zero, production of 4,500 units and sales of 3,850 units, the dollar value of the ending inventory under variable costing would be:

$8,125

$13,975

$10,400

$5,850

14.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

What is the total period cost for the month under variable costing?

$412,800

$325,000

$637,800

$737,800

15.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

The total gross margin for the month under absorption costing is:

$85,560

$8,280

$116,160

$126,960

16.

Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $11,400. The BAJ Division's divisional segment margin is $79,600 and the CBB Division's divisional segment margin is $45,100. What is the amount of the common fixed expense not traceable to the individual divisions?

$91,000

$113,300

$56,500

$124,700

17.

Koen Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $40,000 for Division A. Division B had a contribution margin ratio of 30% and its sales were $257,000. Net operating income for the company was $36,300 and traceable fixed expenses were $59,900. Koen Corporation's common fixed expenses were:

$20,900

$59,900

$80,800

$117,100

18.

Insider Corporation has two divisions, J and K. During March, the contribution margin in Division J was $33,000. The contribution margin ratio in Division K was 40%, its sales were $128,000, and its segment margin was $35,000. The common fixed expenses in the company were $43,000, and the company's net operating income was $19,500. The segment margin for Division J was:

$27,500

$35,000

$8,000

$62,500

19.

Farron Corporation, 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?

$10,750

$(20,450)

$16,750

$6,000

20.

Farron Corporation, 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?

$26,200

$11,000

$17,000

$6,000

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Explanation / Answer

11. $99 per unit (Add Direct materials, Direct labor and Variable manufacturing cost per unit)

12. $205 per unit

* 417,300/10,700 = 39

13. $8,125

Ending Inventory = 4,500- 3,850

Valued @ product unit cost $12.5 per unit under variable costing

14. Total period cost under variable costing = Fixed manufacturing + Fixed selling/ administrative

412,800+225,000 = 637,800

15.$85,560

Selling price per unit = 140

Gross margin per unit = 31

Total gross margin = 2,760*31 = 85,560

16.113,300

Total segmental margin of both units = 124,700

Less: Net operating income = 11,400

Fixed expenses not traceable to segments = 113,300

17. 20,900

Contribution margin of Division A = 40,000

+Contribution margin of Division B = 257000*30% = 77,100

Total = 117,100

Fixed expenses - treaceable = 59,900

less: Net operating income = 36,300

Non traceable Fixed expenses = 20,900

Units produced            10,700 Materials                  108                    1,155,600 Labor                     51                        545,700 Variable o/h                       7                          74,900 Fixed o/h                     39*                        417,300 Total                  205                    2,193,500
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