Deck 7: Super-Variable Costing

Question 1

(Appendix 6A) Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit.
The unit product cost under super-variable costing is:

A) $97 per unit
B) $191 per unit
C) $224 per unit
D) $114 per unit

Answer 1

A
Explanation:
Under super-variable costing, the unit product cost is just the direct materials cost of $97 per unit.

Question 2

(Appendix 6A) Union Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 24,000 units and sold 17,000 units. The company's only product is sold for $232 per unit.
Assume that the company uses an absorption costing system that assigns $22 of direct labor cost and $68 of fixed manufacturing overhead to each unit that is produced.The net operating income under this costing system is:

A) $(102,000)
B) $374,000
C) $(830,000)
D) $(256,000)

Answer 2

B
Explanation:

Question 3

Souffront Corporation manufactures and sells one product.In the company's first year of operations,the variable cost consisted solely of direct materials of $97 per unit.The annual fixed costs were $1,416,000 of direct labor cost,$3,776,000 of fixed manufacturing overhead expense,and $1,650,000 of fixed selling and administrative expense.The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 59,000 units and sold 55,000 units.The company's only product is sold for $251 per unit. The net operating income for the year under super-variable costing is:

A) $1,628,000
B) $1,724,000
C) $1,240,000
D) $1,980,000

Answer 3

A
Explanation:

Question 4

Under super-variable costing,which of the following is treated as a period cost?

Question 5

The super-variable costing net operating income period can be computed by multiplying the number of units sold by the gross margin per unit.

Question 6

(Appendix 6A) Leheny Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit.
Assume that the company uses a variable costing system that assigns $21 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

A) $1,400,000
B) $1,005,000
C) $1,110,000
D) $580,000

Question 7

(Appendix 6A) Leheny Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit.
Assume that the company uses an absorption costing system that assigns $21 of direct labor cost and $58 of fixed manufacturing overhead to each unit that is produced.The net operating income under this costing system is:

A) $580,000
B) $1,400,000
C) $1,005,000
D) $1,110,000

Question 8

Super-variable costing is most appropriate where:

A) direct labor is a fixed cost.
B) it is easy to accurately separate the variable and fixed components of manufacturing overhead.
C) direct labor is a variable cost.
D) manufacturing overhead consists entirely of variable cost.

Question 9

(Appendix 6A) Leheny Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit.
The net operating income for the year under super-variable costing is:

A) $1,400,000
B) $1,110,000
C) $1,005,000
D) $580,000

Question 10

(Appendix 6A) Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit.
Assume that the company uses a variable costing system that assigns $17 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

A) $1,184,000
B) $229,000
C) $714,000
D) $799,000

Question 11

(Appendix 6A) Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit.
Assume that the company uses a variable costing system that assigns $17 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:

A) $114 per unit
B) $191 per unit
C) $97 per unit
D) $224 per unit

Question 12

All differences between super-variable costing and variable costing net operating income are explained by the accounting for manufacturing overhead costs.

Question 13

(Appendix 6A) Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit.
The net operating income for the year under super-variable costing is:

A) $799,000
B) $229,000
C) $714,000
D) $1,184,000

Question 14

(Appendix 6A) Union Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 24,000 units and sold 17,000 units. The company's only product is sold for $232 per unit.
The net operating income for the year under super-variable costing is:

A) $(256,000)
B) $(830,000)
C) $(102,000)
D) $374,000

Question 15

(Appendix 6A) Letcher Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 56,000 units and sold 54,000 units. The company's only product is sold for $227 per unit.
The net operating income for the year under super-variable costing is:

A) $1,604,000
B) $1,404,000
C) $1,582,000
D) $1,728,000

Question 16

(Appendix 6A) Letcher Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 56,000 units and sold 54,000 units. The company's only product is sold for $227 per unit.
The company is considering using either super-variable costing or a variable costing system that assigns $11 of direct labor cost to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A) Variable costing net operating income exceeds super-variable costing net operating income by $124,000.
B) Super-variable costing net operating income exceeds variable costing net operating income by $124,000.
C) Variable costing net operating income exceeds super-variable costing net operating income by $22,000.
D) Super-variable costing net operating income exceeds variable costing net operating income by $22,000.

Question 17

Michelman Corporation manufactures and sells one product.The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 34,000 units and sold 31,000 units.The company's only product is sold for $254 per unit.
The company is considering using either super-variable costing or an absorption costing system that assigns $28 of direct labor cost and $75 of fixed manufacturing overhead to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A) Absorption costing net operating income exceeds super-variable costing net operating income by $309,000.
B) Absorption costing net operating income exceeds super-variable costing net operating income by $225,000.
C) Super-variable costing net operating income exceeds absorption costing net operating income by $309,000.
D) Super-variable costing net operating income exceeds absorption costing net operating income by $225,000.

Question 18

Paparelli Corporation manufactures and sells one product.The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 40,000 units and sold 33,000 units.The company's only product is sold for $240 per unit.
The net operating income for the year under super-variable costing is:

A) $308,000
B) $(252,000)
C) $924,000
D) $448,000

Question 19

Super-variable costing is a costing method mat treats direct labor and manufacturing overhead costs as product costs.

Question 20

Grandin Corporation manufactures and sells one product.The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 44,000 units and sold 41,000 units.The company's only product is sold for $242 per unit.
The company is considering using either super-variable costing or a variable costing system that assigns $24 of direct labor cost to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A) Super-variable costing net operating income exceeds variable costing net operating income by $72,000.
B) Variable costing net operating income exceeds super-variable costing net operating income by $156,000.
C) Super-variable costing net operating income exceeds variable costing net operating income by $156,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $72,000.

Question 21

(Appendix 6A) Stubenrauch Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 38,000 units and sold 32,000 units. The company's only product is sold for $240 per unit.
The net operating income for the year under super-variable costing is:

A) $912,000
B) $1,248,000
C) $282,000
D) $828,000

Question 22

(Appendix 6A) Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.
Assume that the company uses an absorption costing system that assigns $11 of direct labor cost and $75 of fixed manufacturing overhead to each unit that is produced.The unit product cost under this costing system is:

A) $94 per unit
B) $180 per unit
C) $105 per unit
D) $210 per unit

Question 23

(Appendix 6A) Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit.
The company is considering using either super-variable costing or an absorption costing system that assigns $10 of direct labor cost and $67 of fixed manufacturing overhead to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A) Super-variable costing net operating income exceeds absorption costing net operating income by $1,000.
B) Super-variable costing net operating income exceeds absorption costing net operating income by $77,000.
C) Absorption costing net operating income exceeds super-variable costing net operating income by $77,000.
D) Absorption costing net operating income exceeds super-variable costing net operating income by $1,000.

Question 24

(Appendix 6A) Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit.
The unit product cost under super-variable costing is:

A) $214 per unit
B) $93 per unit
C) $170 per unit
D) $103 per unit

Question 25

(Appendix 6A) Labadie Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit.
The unit product cost under super-variable costing is:

A) $117 per unit
B) $215 per unit
C) $94 per unit
D) $181 per unit

Question 26

(Appendix 6A) Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit.
Assume that the company uses an absorption costing system that assigns $10 of direct labor cost and $67 of fixed manufacturing overhead to each unit that is produced.The unit product cost under this costing system is:

A) $103 per unit
B) $214 per unit
C) $170 per unit
D) $93 per unit

Question 27

(Appendix 6A) Marcelin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit.
The unit product cost under super-variable costing is:

A) $191 per unit
B) $233 per unit
C) $114 per unit
D) $92 per unit

Question 28

(Appendix 6A) Labadie Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit.
The company is considering using either super-variable costing or a variable costing system that assigns $23 of direct labor cost to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A) Super-variable costing net operating income exceeds variable costing net operating income by $69,000.
B) Variable costing net operating income exceeds super-variable costing net operating income by $69,000.
C) Super-variable costing net operating income exceeds variable costing net operating income by $192,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $192,000.

Question 29

(Appendix 6A) Letcher Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 56,000 units and sold 54,000 units. The company's only product is sold for $227 per unit.
The company is considering using either super-variable costing or an absorption costing system that assigns $11 of direct labor cost and $62 of fixed manufacturing overhead to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A) Super-variable costing net operating income exceeds absorption costing net operating income by $146,000.
B) Absorption costing net operating income exceeds super-variable costing net operating income by $124,000.
C) Super-variable costing net operating income exceeds absorption costing net operating income by $124,000.
D) Absorption costing net operating income exceeds super-variable costing net operating income by $146,000.

Question 30

(Appendix 6A) Marcelin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit.
The company is considering using either super-variable costing or a variable costing system that assigns $22 of direct labor cost to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A) Variable costing net operating income exceeds super-variable costing net operating income by $110,000.
B) Super-variable costing net operating income exceeds variable costing net operating income by $385,000.
C) Super-variable costing net operating income exceeds variable costing net operating income by $110,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $385,000.

Question 31

(Appendix 6A) Marcelin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit.
The net operating income for the year under super-variable costing is:

A) $1,593,000
B) $1,023,000
C) $1,978,000
D) $1,483,000

Question 32

(Appendix 6A) Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.
The unit product cost under super-variable costing is:

A) $180 per unit
B) $105 per unit
C) $94 per unit
D) $210 per unit

Question 33

(Appendix 6A) Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit.
Assume that the company uses a variable costing system that assigns $10 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:

A) $170 per unit
B) $214 per unit
C) $93 per unit
D) $103 per unit

Question 34

(Appendix 6A) Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit.
The company is considering using either super-variable costing or a variable costing system that assigns $10 of direct labor cost to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A) Variable costing net operating income exceeds super-variable costing net operating income by $10,000.
B) Super-variable costing net operating income exceeds variable costing net operating income by $10,000.
C) Super-variable costing net operating income exceeds variable costing net operating income by $67,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $67,000.

Question 35

(Appendix 6A) Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.
Assume that the company uses a variable costing system that assigns $11 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:

A) $105 per unit
B) $180 per unit
C) $94 per unit
D) $210 per unit

Question 36

(Appendix 6A) Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.
Assume that the company uses a variable costing system that assigns $11 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

A) $1,035,000
B) $691,000
C) $315,000
D) $735,000

Question 37

(Appendix 6A) Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.
Assume that the company uses an absorption costing system that assigns $11 of direct labor cost and $75 of fixed manufacturing overhead to each unit that is produced.The net operating income under this costing system is:

A) $315,000
B) $1,035,000
C) $735,000
D) $691,000

Question 38

(Appendix 6A) Stubenrauch Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 38,000 units and sold 32,000 units. The company's only product is sold for $240 per unit.
Assume that the company uses a variable costing system that assigns $14 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

A) $282,000
B) $912,000
C) $1,248,000
D) $828,000

Question 39

(Appendix 6A) Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.
The net operating income for the year under super-variable costing is:

A) $735,000
B) $1,035,000
C) $691,000
D) $315,000

Question 40

(Appendix 6A) Labadie Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit.
Assume that the company uses a variable costing system that assigns $23 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:

A) $181 per unit
B) $117 per unit
C) $94 per unit
D) $215 per unit

Question 41

Nurre Corporation manufactures and sells one product.In the company's first year of operations,the variable cost consisted solely of direct materials of $88 per unit.The annual fixed costs were $729,000 of direct labor cost,$1,917,000 of fixed manufacturing overhead expense,and $814,000 of fixed selling and administrative expense.The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 27,000 units and sold 22,000 units.The company's only product is sold for $247 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses an absorption costing system that assigns $27 of direct labor cost and $71 of fixed manufacturing overhead to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.

Question 42

Shelko Corporation manufactures and sells one product.The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 42,000 units and sold 37,000 units.The company's only product is sold for $272 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses an absorption costing system that assigns $28 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.
c.Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes.

Question 43

Woodall Corporation manufactures and sells one product.The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 46,000 units and sold 44,000 units.The company's only product is sold for $235 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses a variable costing system that assigns $14 of direct labor cost to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.
c.Assume that the company uses an absorption costing system that assigns $14 of direct labor cost and $56 of fixed manufacturing overhead to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.
d.Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes.
e.Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes.

Question 44

Sawicki Corporation manufactures and sells one product.The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 25,000 units and sold 18,000 units.The company's only product is sold for $224 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses an absorption costing system that assigns $10 of direct labor cost and $62 of fixed manufacturing overhead to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.

Question 45

Guillaume Corporation manufactures and sells one product.The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 46,000 units and sold 41,000 units.The company's only product is sold for $260 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses a variable costing system that assigns $28 of direct labor cost to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.

Question 46

Schubert Corporation manufactures and sells one product.In the company's first year of operations,the variable cost consisted solely of direct materials of $86 per unit.The annual fixed costs were $510,000 of direct labor cost,$2,210,000 of fixed manufacturing overhead expense,and $1,209,000 of fixed selling and administrative expense.The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 34,000 units and sold 31,000 units.The company's only product is sold for $232 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses a variable costing system that assigns $15 of direct labor cost to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.

Question 47

Drucker Corporation manufactures and sells one product.In the company's first year of operations,the variable cost consisted solely of direct materials of $84 per unit.The annual fixed costs were $288,000 of direct labor cost,$1,728,000 of fixed manufacturing overhead expense,and $782,000 of fixed selling and administrative expense.The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 24,000 units and sold 17,000 units.The company's only product is sold for $249 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year.
b.Assume the company uses super-variable costing.Prepare an income statement for the year.

Question 48

Dattilio Corporation manufactures and sells one product.The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 54,000 units and sold 49,000 units.The company's only product is sold for $238 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year.
b.Assume the company uses super-variable costing.Prepare an income statement for the year.

Question 49

Valcarcel Corporation manufactures and sells one product.The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 31,000 units and sold 25,000 units.The company's only product is sold for $233 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses a variable costing system that assigns $13 of direct labor cost to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.
c.Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes.