91) The operating income (loss) under absorption costing would be

A) $ 33,200.

B) $ 16,400.

C) $( 6,000).

D) $(20,000).

A company has the following information:

Beginning inventories

none

Raw materials used

$  50,000

Sales ($130 per unit)

$156,000

Direct labour

$  84,000

Variable factory overhead

$  34,000

Fixed factory overhead

unknown

Variable selling and administrative

$    6,000

Fixed selling and administrative

$  10,000

Gross profit

$  60,000

Contribution margin

unknown

Ending inventories

Raw materials

$  14,000

WIP

none

Finished goods

1,200 units

92) The fixed factory overhead incurred was

A) $66,000.

B) $32,000.

C) $ -0-.

D) $24,000.

93) The ending inventory under absorption costing would be

A) $ 96,000.

B) $ 84,000.

C) $168,000.

D) $ 60,000.

94) The cost of goods sold under absorption costing would be

A) $168,000.

B) $192,000.

C) $ 84,000.

D) $ 96,000.

95) The net income under absorption costing would be

A) $50,000.

B) $32,000.

C) $60,000.

D) $44,000.

96) The fixed-overhead rate is determined by dividing the budgeted fixed manufacturing overhead by

A) expected volume of the cost driver.

B) actual volume of production.

C) budgeted variable manufacturing overhead.

D) the number of units sold.

The following information refers to the Cowan Company’s past year of operations.

Product A

Product B

Production (units)

160,000

300,000

Sales (units)

100,000

250,000

Selling price

$6.00

$5.00

Direct Labour hours

60,000

90,000

Manufacturing costs:

   Direct materials

$ 80,000

$270,000

   Direct labour

240,000

540,000

   Variable overhead

24,000

30,000

   Fixed overhead:   Direct

80,000

50,000

   Fixed overhead:  Common*

25,000

25,000

Nonmanufacturing costs:

   Variable selling

$ 40,000

$  75,000

    Direct fixed selling

50,000

65,000

   Common fixed selling**

30,000

30,000

97) The unit product cost for Product A using variable costing is

A) $2.00.

B) $2.15.

C) $2.45.

D) $2.60.

98) The unit product cost for Product A using absorption costing is

A) $2.15.

B) $2.45.

C) $2.60.

D) $2.80.

99) The unit product cost for Product B using variable costing is

A) $2.15.

B) $2.45.

C) $2.80.

D) $3.04.

100) The unit product cost for Product B using absorption costing is

A) $3.16.

B) $2.80.

C) $2.60.

D) $2.45.

101) Variable cost of goods sold for the year is

A) $700,000.

B) $915,000.

C) $1,025,000.

D) $1,072,000.

102) Variable costing net income for the year is

A) $938,000.

B) $763,000.

C) $648,000.

D) $465,000.

103) Using absorption costing, cost of goods sold for the year is

A) $1,050,000.

B) $912,000.

C) $797,000.

D) $760,000.

104) Absorption costing net income for the year is

A) $840,000.

B) $648,000.

C) $510,000.

D) $488,000.

105) Which of the following is NOT considered a payroll fringe cost?

A) Idle time

B) Pension plan contributions

C) Social security payment

D) Health insurance coverage



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