Question 1

Philadelphia Company has the following information for March:  Determine the March (a) manufacturing margin, (b) contribution margin, and (c) operating income for Philadelphia Company.

Accepted Answer

The answer of Philadelphia Company has the following information for...

Question 2

Match each of the following descriptions with the appropriate costing concept (a-c).
-May be used in a manufacturing company
A)Absorption costing only
B)Variable costing only
C)Both absorption and variable costing

Accepted Answer

The answer of Match each of the following descriptions with...

Question 3

The following data are for Trendy Fashion Apparel:  Determine the contribution margin for (a) Skirts and (b) the South Region.

Accepted Answer

The answer of The following data are for Trendy Fashion...

Question 4

At XLT Inc., variable costs are $80 per unit, and fixed costs are $40,000. Sales are estimated to be 4,000 units.
a. How much would absorption costing operating income differ between a plan to produce 8,000 units and a plan to produce 10,000 units?
b. How much would variable costing operating income differ between the two production plans?

Accepted Answer

The answer of At XLT Inc., variable costs are $80...

Question 5

Tony's Company has the following information for March:  Determine the March (a) manufacturing margin, (b) contribution margin, and (c) operating income for Tony's Company.

Accepted Answer

The answer of Tony's Company has the following information for...

Question 6

Fixed costs are $50 per unit, and variable costs are $125 per unit. Production was 130,000 units, while sales were 125,000 units. Determine (a) whether variable costing operating income is less than or greater than absorption costing operating income and (b) the difference in variable costing and absorption costing operating income.

Accepted Answer

The answer of Fixed costs are $50 per unit, and...

Question 7

The beginning inventory is 5,000 units. All of the units manufactured during the period and 3,000 units of the beginning inventory were sold. The beginning inventory fixed costs are $25 per unit, and variable costs are $55 per unit. Determine (a) whether variable costing operating income is less than or greater than absorption costing operating income and (b) the difference in variable costing and absorption operating income.

Accepted Answer

The answer of The beginning inventory is 5,000 units. All...

Question 8

Excelsior Company has three salespersons. Average sales price per unit sold, average variable manufacturing costs per unit, and number of units sold for each salesperson are shown below.Commissions are earned according to the following schedule:   Prepare a contribution by salesperson report.

Accepted Answer

The answer of Excelsior Company has three salespersons. Average sales...

Question 9

If variable manufacturing costs are $15 per unit and total fixed manufacturing costs are $200,000, what is the manufacturing cost per unit if:
a. 20,000 units are manufactured and the company uses the variable costing concept?
b. 25,000 units are manufactured and the company uses the variable costing concept?
c. 20,000 units are manufactured and the company uses the absorption costing concept?
d. 25,000 units are manufactured and the company uses the absorption costing concept?

Accepted Answer

The answer of If variable manufacturing costs are $15 per...

Question 10

On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January:  
a.Prepare an income statement using absorption costing.
b.Prepare an income statement using variable costing.

Accepted Answer

The answer of On January 1 of the current year,...

Question 11

On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing:  If the fixed manufacturing costs were $42,900 and the variable selling and administrative expenses were $14,600, prepare an income statement using variable costing.​

Accepted Answer

The answer of On October 31, the end of the...

Question 12

Fixed costs are $10 per unit, and variable costs are $25 per unit. Production was 13,000 units, while sales were 12,000 units. Determine (a) whether variable costing operating income is less than or greater than absorption costing operating income and (b) the difference in variable costing and absorption costing operating income.

Accepted Answer

The answer of Fixed costs are $10 per unit, and...

Question 13

Match each of the following descriptions with the appropriate costing concept (a-c).
-Includes gross profit on the income statement
A)Absorption costing only
B)Variable costing only
C)Both absorption and variable costing

Accepted Answer

The answer of Match each of the following descriptions with...

Question 14

At EOM Inc., the beginning inventory is 20,000 units. All of the units manufactured during the period and 16,000 units of the beginning inventory were sold. The beginning inventory fixed costs are $50 per unit, and variable costs are $300 per unit. Determine (a) whether variable costing operating income is less than or greater than absorption costing operating income and (b) the difference in variable costing and absorption operating income.

Accepted Answer

The answer of At EOM Inc., the beginning inventory is...

Question 15

The major categories or captions that would appear on an income statement prepared in the variable costing format are as follows:
Contribution margin
Fixed costs
Manufacturing margin
Operating income
Sales
Variable cost of goods sold
Variable selling and administrative expenses
a.Arrange these captions in the proper order in accordance with the variable costing concept.
b.Which of the captions represents (1) the difference between sales and the total of all the variable costs and expenses and (2) the remaining amount of revenue available for fixed manufacturing costs, fixed expenses, and net income?

Accepted Answer

The answer of The major categories or captions that would...

Question 16

During the first year of operations, 18,000 units were manufactured and 13,500 units were sold. On August 31, Olympic Inc. prepared the following income statement based on the variable costing concept:  Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.

Accepted Answer

The answer of During the first year of operations, 18,000...

Quiz 21: Variable Costing for Management Analysis

Philadelphia Company has the following information for March: Determine the March (a) manufacturing margin, (b) contribution margin, and (c) operating income for Philadelphia Company.

Match each of the following descriptions with the appropriate costing concept (a-c). -May be used in a manufacturing company A)Absorption costing only B)Variable costing only C)Both absorption and variable costing

The following data are for Trendy Fashion Apparel: Determine the contribution margin for (a) Skirts and (b) the South Region.

Tony's Company has the following information for March: Determine the March (a) manufacturing margin, (b) contribution margin, and (c) operating income for Tony's Company.

Excelsior Company has three salespersons. Average sales price per unit sold, average variable manufacturing costs per unit, and number of units sold for each salesperson are shown below.Commissions are earned according to the following schedule: Prepare a contribution by salesperson report.

On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: a.Prepare an income statement using absorption costing. b.Prepare an income statement using variable costing.

Match each of the following descriptions with the appropriate costing concept (a-c). -Includes gross profit on the income statement A)Absorption costing only B)Variable costing only C)Both absorption and variable costing