10 Jan Fixed selling and

1.

A company produces a single product. Variable production costs are $13.7 per unit and variable selling and administrative expenses are $4.7 per unit. Fixed manufacturing overhead totals $53,000 and fixed selling and administration expenses total $57,000. Assuming a beginning inventory of zero, production of 5,700 units and sales of 4,450 units, the dollar value of the ending inventory under variable costing would be:

$17,125

$28,375

$23,000

$11,250

2.

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

Selling price

$144

Units in beginning inventory

0

Units produced

3,020

Units sold

2,730

Units in ending inventory

290

Variable costs per unit:

Direct materials

$47

Direct labor

$21

Variable manufacturing overhead

$16

Variable selling and administrative

$9

Fixed costs:

Fixed manufacturing overhead

$90,600

Fixed selling and administrative expenses

$35,490

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

$81,900

$21,840

$128,430

$139,230

3.

Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price

$170

Units in beginning inventory

100

Units produced

2,130

Units sold

870

Units in ending inventory

1,360

Variable costs per unit:

Direct materials

$75

Direct labor

$30

Variable manufacturing overhead

$10

Variable selling and administrative

$13

Fixed costs:

Fixed manufacturing overhead

$27,690

Fixed selling and administrative

$17,400

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

$45,090

$28,710

$27,690

$56,400

4.

Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price

$172

Units in beginning inventory

0

Units produced

9,700

Units sold

9,300

Units in ending inventory

400

Variable costs per unit:

Direct materials

$33

Direct labor

$75

Variable manufacturing overhead

$21

Variable selling and administrative

$25

Fixed costs:

Fixed manufacturing overhead

$145,500

Fixed selling and administrative

$10,300

What is the net operating income for the month under variable costing?

$11,600

$(40,000)

$17,600

$6,000

5.

Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price

$120

Units in beginning inventory

0

Units produced

9,050

Units sold

8,650

Units in ending inventory

400

Variable costs per unit:

Direct materials

$20

Direct labor

$62

Variable manufacturing overhead

$8

Variable selling and administrative

$12

Fixed costs:

Fixed manufacturing overhead

$135,750

Fixed selling and administrative

$9,000

What is the net operating income for the month under absorption costing?

$25,050

$10,950

$16,950

$6,000

6.

Aaker Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price

$135

Units in beginning inventory

0

Units produced

6,750

Units sold

6,450

Units in ending inventory

300

Variable costs per unit:

Direct materials

$21

Direct labor

$51

Variable manufacturing overhead

$15

Variable selling and administrative

$15

Fixed costs:

Fixed manufacturing overhead

$182,250

Fixed selling and administrative

$26,700

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

$102 per units

$129 per units

$114 per units

$87 per units

7.

Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price

$115

Units in beginning inventory

0

Units produced

6,500

Units sold

6,200

Units in ending inventory

300

Variable costs per unit:

Direct materials

$16

Direct labor

$46

Variable manufacturing overhead

$10

Variable selling and administrative

$10

Fixed costs:

Fixed manufacturing overhead

$175,500

Fixed selling and administrative

$25,200

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 unit product cost for the month under absorption costing?

$99 per unit

$72 per unit

$82 per unit

$109 per unit

8.

Harris Corporation produces a single product. Last year, Harris manufactured 32,150 units and sold 26,900 units. Production costs for the year were as follows:

Fixed manufacturing overhead

$482,250

Variable manufacturing overhead

$279,705

Direct labor

$154,320

Direct materials

$234,695

Sales were $1,277,750, for the year, variable selling and administrative expenses were $158,710, and fixed selling and administrative expenses were $212,190. There was no beginning inventory. Assume that direct labor is a variable cost.

The contribution margin per unit would be: (Do not round intermediate calculations.)

$26.70 per unit

$16.30 per unit

$20.80 per unit

$21.90 per unit

9.

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

Selling price

$89

Units in beginning inventory

0

Units produced

4,300

Units sold

4,000

Units in ending inventory

300

Variable costs per unit:

Direct materials

$13

Direct labor

$35

Variable manufacturing overhead

$1

Variable selling and administrative

$10

Fixed costs:

Fixed manufacturing overhead

$77,400

Fixed selling and administrative

$24,000

The total contribution margin for the month under variable costing is:

$160,000

$88,000

$42,600

$120,000