Question 16
Helton Company has the following information for the current year:
Beginning fixed manufacturing overhead in inventory | $95,000 |
Fixed manufacturing overhead in production | 375,000 |
Ending fixed manufacturing overhead in inventory | 25,000 |
Beginning variable manufacturing overhead in inventory | $10,000 |
Variable manufacturing overhead in production | 50,000 |
Ending variable manufacturing overhead in inventory | 15,000 |
What is the difference between operating incomes under absorption costing and variable costing?
Select one:
A. $5,000
B. $65,000
C. $70,000
D. $50,000
E. $40,000
Question 17
A manufacturing firm is able to produce 1,000 pairs of shoes per
hour, at maximum efficiency. There are three eight-hour shifts each
day. Due to unavoidable operating interruptions, production
averages 800 units per hour. In the month of June the plant
actually operated only 25 days due to avoidable shut downs.
What is the theoretical capacity for the month of April?
Select one:
A. 600,000 units
B. 720,000 units
C. 480,000 units
D. 576,000 units
E. 744,400 units
Question 18
Variable costing regards fixed manufacturing overhead as
Select one:
A. a product cost.
B. a period expense.
C. an unexpired cost.
D. an inventoriable cost.
E. a deferred asset.
Question 19
Peggy's Pillows produces and sells a decorative pillow for $75.00
per unit. In the first month of operation, 2,000 units were
produced and 1,750 units were sold. Actual fixed costs are the same
as the amount budgeted for the month. Other information for the
month includes:
Variable manufacturing costs | $20.00 per unit |
Variable marketing costs | $3.00 per unit |
Fixed manufacturing costs | $7.00 per unit |
Administrative expenses, all fixed | $15.00 per unit |
Ending inventories: | |
Direct materials | -0- |
WIP | -0- |
Finished goods | 250 units |
What is operating income using variable costing?
Select one:
A. $78,750
B. $52,500
C. $40,000
D. $65,750
E. $47,000
Question 20
Peggy's Pillows produces and sells a decorative pillow for $75.00
per unit. In the first month of operation, 2,000 units were
produced and 1,750 units were sold. Actual fixed costs are the same
as the amount budgeted for the month. Other information for the
month includes:
Variable manufacturing costs | $20.00 per unit |
Variable marketing costs | $3.00 per unit |
Fixed manufacturing costs | $7.00 per unit |
Administrative expenses, all fixed | $15.00 per unit |
Ending inventories: | |
Direct materials | -0- |
WIP | -0- |
Finished goods | 250 units |
What is cost of goods sold using variable costing?
Select one:
A. $78,750
B. $35,000
C. $40,250
D. $47,250
E. $52,500
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