Home / Questions / What was the net income for July using absorption costing
What was the net income for July using absorption costing?
a.$20,000
b.$40,000
c.$50,000
d.$80,000
52.Refer to Ramon Company. What was the net income for June using variable costing?
a.($40,000)
b.($20,000)
c.$20,000
d.$40,000
Steele Corporation has the following information for January, February, and March:
JanuaryFebruaryMarch
Units produced10,00010,00010,000
Units sold7,0008,50010,500
Production costs per unit (based on 10,000 units) are as follows:
Direct materials$12
Direct labour8
Variable factory overhead6
Fixed factory overhead4
Variable selling and administrative expenses10
Fixed selling and administrative expenses4
Steele Corporation had no beginning inventories for January, and all units were sold for $50 per unit. Costs are stable over the three months.
53.Refer to Steele Corporation. What is the February ending inventory for Steele Corporation when using the absorption costing method?
a.$39,000
b.$45,000
c.$135,000
d.$300,000
54.Refer to Steele Corporation. What is the January ending inventory for Steele Corporation when using the variable costing method?
a.$78,000
b.$90,000
c.$108,000
d.$260,000
55.Refer to Steele Corporation. What is the March ending inventory for Steele Corporation when using the variable costing method?
a.$15,000
b.$104,000
c.$120,000
d.$260,000
56.Refer to Steele Corporation. What is the February contribution margin for Steele Corporation when using the variable costing method?
a.$119,000
b.$170,000
c.$204,000
d.$240,000
The following information pertains to Stark Corporation:
Beginning inventory0 units
Ending inventory5,000 units
Direct labour per unit$20
Direct materials per unit16
Variable overhead per unit4
Fixed overhead per unit10
Variable selling costs per unit12
Fixed selling costs per unit16
57.Refer to Stark Corporation. What is the value of ending inventory when using the absorption-costing method?
a.$200,000
b.$250,000
c.$310,000
d.$390,000
58.Refer to Stark Corporation. What is the value of ending inventory when using the variable costing method?
a.$200,000
b.$250,000
c.$310,000
d.$390,000
59.Refer to Stark Corporation. What is the relationship between absorption-costing net income and variable-costing net income?
a.Absorption-costing net income is $50,000 less.
b.Absorption-costing net income is $70,000 less.
c.Absorption-costing net income is $50,000 greater.
d.Absorption-costing net income is $70,000 greater.
Nauman Company has the following information pertaining to its two divisions for 2011:
Division XDivision Y
Variable selling and administrative expenses$ 70,000$ 90,000
Direct fixed manufacturing expenses35,000100,000
Sales200,000400,000
Direct fixed selling and administrative expenses30,00070,000
Variable manufacturing expenses40,000100,000
Common expenses are $24,000 for 2011.
60.Refer to Nauman Company. What is the segment margin for Division Y?
a.$40,000
b.$210,000
c.$240,000
d.$310,000
61.Refer to Nauman Company. What is the net income for Nauman Company?
a.$41,000
b.$65,000
c.$300,000
d.$325,000
Barmore Company has the following information pertaining to its two divisions for 2010:
Division ADivision B
Variable selling and administrative expenses$ 35,000$ 45,000
Direct fixed manufacturing expenses17,50050,000
Sales100,000200,000
Direct fixed selling and administrative expenses15,00035,000
Variable manufacturing expenses20,00050,000
Common expenses are $12,000 for 2010.
62.Refer to Barmore Company. What is the segment margin for Division B?
a.$20,000
b.$55,000
c.$105,000
d.$155,000
63.Refer to Barmore Company. What is the net income for Barmore Company?
a.$20,500
b.$32,500
c.$150,000
d.$300,000
Assume the following information for a product line:
Sales$500,000
Variable manufacturing expenses100,000
Direct fixed manufacturing expenses75,000
Variable selling and administrative expenses50,000
Direct fixed selling and admin. expenses60,000
64.Refer to product line. What is the contribution margin of the product line?
a.$215,000
b.$325,000
c.$350,000
d.$400,000
65.Refer to product line. What is the segment margin of the product line?
a.$215,000
b.$325,000
c.$350,000
d.$400,000
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