var

1 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28 per phone and fixed manufacturing costs of $2 per phone. Hi-Tech uses a FIFO cost flow.

If the company pays bonuses to the production manager for keeping production cost per unit under $34.00 per cell phone, under which costing method will the manager earn a bonus for March?Choose one answer.

a. Absorption costing

b. Neither variable nor absorption costing

c. Variable costing

d. Both variable and absorption costing IncorrectMarks for this submission: 0/1.Question 2 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000

Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.What is the value of the ending inventory on April 30, 2012 using variable costing?Choose one answer.

a. $22,400

b. $23,100

c. $23,800

d. $21,700 CorrectMarks for this submission: 1/1.Question 3 Marks: 1 Mega-Thirst produces an energy drink called Mega-Caffeine. The drinks sell to grocery stores and other retailers for $10 a case. During September, the first month of production, the company used $65,000 of aluminum cans and $35,000 of syrup, soda and caffeine. September manufacturing wages were $60,000 and variable manufacturing overhead incurred was $20,000. September's fixed manufacturing overhead costs were $70,000 and fixed selling and administrative costs were $12,000. Selling commissions were $0.25 per case. Mega-Thirst sold 46, 000 of the 50,000 cases that were produced in September for $10 per case. Calculate the September operating income using variable costing.Choose one answer.

a. $200,900

b. $205,500

c. $199,900

d. $206,500 IncorrectMarks for this submission: 0/1.Question 4 Marks: 1 Mega-Thirst produces an energy drink called Mega-Caffeine. The drinks sell to grocery stores and other retailers for $10 a case. During September, the first month of production, the company used $65,000 of aluminum cans and $35,000 of syrup, soda and caffeine. September manufacturing wages were $60,000 and variable manufacturing overhead incurred was $20,000. September's fixed manufacturing overhead costs were $70,000 and fixed selling and administrative costs were $12,000. Selling commissions were $0.25 per case. Mega-Thirst sold 46, 000 of the 50,000 cases that were produced in September for $10 per case. Which method would result in the larger operating income and why?Choose one answer.

a. Absorption costing– because the fixed manufacturing costs are all expensed during September b. Variable costing– because the fixed manufacturing costs are all expensed during September c. Variable costing– because the cost per unit is less, which means ending inventory costs are smaller d. Absorption costing– because the cost per unit is higher, which means ending inventory costs are larger

CorrectMarks for this submission: 1/1.Question 5 Marks: 1 Roberta's Hot Stuff began making hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Roberta's Hot Stuff incurs monthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative cost of $8,000. On August 31, 2012 ending inventory was 10,000 soup packages. Assume Roberta's Hot Stuff produced 400,000 soup packages in September. Roberta's Hot Stuff sold 406,000 of the soup packages in September. Calculate the total variable cost per hot and sour soup package.Choose one answer.

a. $0.72

b. $0.70

c. $0.80

d. $0.82 CorrectMarks for this submission: 1/1.Question 6 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and

fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.What is the variable cost per cell phone for March and April production?Choose one answer.

a. $30.50 in March and $32.00 in April

b. $33.00 in March and $34.00 in April

c. $32.00 in March and $33.00 in April

d. $31.00 in March and $32.00 in April CorrectMarks for this submission: 1/1.Question 7 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28 per phone and fixed manufacturing costs of $2 per phone. Hi-Tech uses a FIFO cost flow.

If the company pays bonuses to the production manager for keeping production cost per unit under $34.00 per cell phone, under which costing method will the manager earn a bonus for April?Choose one answer.

a. Variable costing

b. Both variable and absorption costing

c. Absorption costing

d. Neither variable nor absorption costing CorrectMarks for this submission: 1/1.Question 8 Marks: 1

Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.What is the value of the ending inventory on April 30, 2012 using absorption costing?Choose one answer.

a. $23,800

b. $22,400

c. $23,100

d. $21,700 CorrectMarks for this submission: 1/1.Question 9 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and

fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.Calculate operating income for March, 2012 using absorption costing?Choose one answer.

a. $663,000

b. $583,000

c. $763,000

d. $683,000 IncorrectMarks for this submission: 0/1.Question 10 Marks: 1 Burrito-Blast makes bean and cheese burritos that it sells to grocery stores. The burritos sell for $1 each. Burrito-Blast had beginning inventory of $20,000 on June 1 for 80,000 burritos. During June the company produced 500,000 burritos. June production costs are as follows:

JuneCost of shells, beans & cheese used in production $10,000Direct labor costs for June $70,000Variable manufacturing overhead cost per burrito $20,000Total fixed manufacturing overhead costs $40,000Total fixed selling and administrative costs $25,000

The company's June 30 ending inventory consists of 20,000 burritos. Assuming they use FIFO costing, calculate the June 30 ending inventory value using absorption costing?Choose one answer.

a. $4,000

b. $20,000

c. $5,000

d. $5,600 IncorrectMarks for this submission: 0/1.Question 11 Marks: 1 Roberta's Hot Stuff began making hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Roberta's Hot Stuff incurs monthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative cost of $8,000. On August 31, 2012 ending inventory was 10,000 soup packages. Assume Roberta's Hot Stuff produced 400,000 soup packages in September. Roberta's Hot Stuff sold 406,000 of the soup packages in September. If employees receive a 3% salary bonus for keeping production costs per unit under $0.70, which method would result in the larger bonus?Choose one answer.

a. Absorption costing

b. Both would yield the same bonus.

c. Variable costing

d. Neither IncorrectMarks for this submission: 0/1.Question 12 Marks: 1 Seattle Enterprises produces packaged fresh meals which it sells for $10 each. During the current month, Seattle produced 2,800 meals, but only sold 2,700 meals. The variable cost per meal was $6 and the sales commissions per meal were $1. Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200. What is the product cost per meal under absorption and under variable costing?Choose one answer.

a. $6.00 under absorption costing and $6.00 under variable costing

b. $6.50 under absorption costing and $6.00 under variable costing

c. $7.50 under absorption costing and $7.00 under variable costing

d. $6.00 under absorption costing and $7.00 under variable costing CorrectMarks for this submission: 1/1.Question 13 Marks: 1 Pat's Hats produces sun visors. Production data for the first month follow:

OctoberDirect materials cost per unit $0.75Direct labor cost per unit $1.50Variable manufacturing overhead cost per unit $0.25Total fixed manufacturing overhead costs $10,000Total fixed selling and administrative costs $40,000Number of units produced 20,000Number of unit sold 19,600Sale price per unit $10

What is the October net income using absorption costing?Choose one answer.

a. $137,000

b. $97,200

c. $137,200

d. $97,000 CorrectMarks for this submission: 1/1.Question 14 Marks: 1 Mega-Thirst produces an energy drink called Mega-Caffeine. The drinks sell to grocery stores and other retailers for $10 a case. During September, the first month of production, the company used $65,000 of aluminum cans and $35,000 of syrup, soda and caffeine. September manufacturing wages were $60,000 and variable manufacturing overhead incurred was $20,000. September's fixed manufacturing overhead costs were $70,000 and fixed selling and administrative costs were $12,000. Selling commissions were $0.25 per case. Mega-Thirst sold 46, 000 of the 50,000 cases that were produced in September for $10 per case. Calculate the September ending inventory value income using variable costing.Choose one answer.

a. $15,400

b. $0

c. $14,400

d. $20,000 IncorrectMarks for this submission: 0/1.Question 15 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.Calculate operating income for April, 2012 using variable costing?Choose one answer.

a. $626,400

b. $625,800

c. $645,800

d. $726,400 IncorrectMarks for this submission: 0/1.Question 16 Marks: 1 Mega-Thirst produces an energy drink called Mega-Caffeine. The drinks sell to grocery stores and other retailers for $10 a case. During September, the first month of production, the company used $65,000 of aluminum cans and $35,000 of syrup, soda and caffeine. September manufacturing wages were $60,000 and variable manufacturing overhead incurred was $20,000. September's fixed manufacturing overhead costs were $70,000 and fixed selling and administrative costs were $12,000. Selling commissions were $0.25 per case. Mega-Thirst sold 46, 000 of the 50,000 cases that were produced in September for $10 per case. Calculate the September production cost per case using absorption costing.Choose one answer.

a. $3.85

b. $5.00

c. $3.60

d. $5.85 IncorrectMarks for this submission: 0/1.Question 17 Marks: 1 Burrito-Blast makes bean and cheese burritos that it sells to grocery stores. The burritos sell for $1 each. Burrito-Blast had beginning inventory of $20,000 on June 1 for 80,000 burritos. During June the company produced 500,000 burritos. June production costs are as follows:

JuneCost of shells, beans & cheese used in production $10,000Direct labor costs for June $70,000Variable manufacturing overhead cost per burrito $20,000Total fixed manufacturing overhead costs $40,000Total fixed selling and administrative costs $25,000

The company's June 30 ending inventory consists of 20,000 burritos. Assuming they use FIFO costing, calculate the June 30 ending inventory value using variable costing?Choose one answer.

a. $4,000

b. $5,000

c. $5,600

d. $20,000

IncorrectMarks for this submission: 0/1.Question 18 Marks: 1 During the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000. If variable production costs were $100,000, a variable costing income statement would report the variable manufacturing costs as a:Choose one answer.

a. $85,000 deduction from sales revenue to obtain contribution margin.

b. $85,000 deduction from sales revenue to obtain gross profit.

c. $100,000 deduction from sales revenue to obtain contribution margin.

d. $100,000 deduction from sales revenue to obtain gross profit. IncorrectMarks for this submission: 0/1.Question 19 Marks: 1 Burrito-Blast makes bean and cheese burritos that it sells to grocery stores. The burritos sell for $1 each. Burrito-Blast had beginning inventory of $20,000 on June 1 for 80,000 burritos. During June the company produced 500,000 burritos. June production costs are as follows:

JuneCost of shells, beans & cheese used in production $10,000Direct labor costs for June $70,000Variable manufacturing overhead cost per burrito $20,000Total fixed manufacturing overhead costs $40,000Total fixed selling and administrative costs $25,000

The company's June 30 ending inventory consists of 20,000 burritos. Assuming they use FIFO costing, calculate the June net income using variable costing?Choose one answer.

a. $358,200

b. $379,000

c. $340,400

d. $380,600 IncorrectMarks for this submission: 0/1.Question 20 Marks: 1 Seattle Enterprises produces packaged fresh meals which it sells for $10 each. During the current month, Seattle produced 2,800 meals, but only sold 2,700 meals. The variable cost per meal was $6 and the sales commissions per meal were $1. Total fixed manufacturing costs were $1,400

and total fixed marketing and administrative costs were $1,200. Net income under variable costing would be:Choose one answer.

a. $10,800.

b. $9,450.

c. $5,550.

d. $5,500. IncorrectMarks for this submission: 0/1.Question 21 Marks: 1 Pat's Hats produces sun visors. Production data for the first month follow:

OctoberDirect materials cost per unit $0.75Direct labor cost per unit $1.50Variable manufacturing overhead cost per unit $0.25Total fixed manufacturing overhead costs $10,000Total fixed selling and administrative costs $40,000Number of units produced 20,000Number of unit sold 19,600Sale price per unit $10

What is the absorption cost per hat for October?Choose one answer.

a. $2.50

b. $2.25

c. $5.00

d. $3.00 CorrectMarks for this submission: 1/1.Question 22 Marks: 1 Mega-Thirst produces an energy drink called Mega-Caffeine. The drinks sell to grocery stores and other retailers for $10 a case. During September, the first month of production, the company used $65,000 of aluminum cans and $35,000 of syrup, soda and caffeine. September manufacturing wages were $60,000 and variable manufacturing overhead incurred was $20,000. September's fixed manufacturing overhead costs were $70,000 and fixed selling and administrative costs were $12,000. Selling commissions were $0.25 per case. Mega-Thirst sold 46, 000 of the 50,000 cases that were produced in September for $10 per case.

If the company plans to increase selling commissions to $0.30 per case, and all other costs would remain the same, how will this affect per unit costs?Choose one answer.

a. Variable cost per unit will decrease, and absorption cost per unit will decrease.

b. Variable cost per unit will stay the same, but absorption cost per unit will decrease.

c. There will be no change to either.

d. Variable cost per unit will decrease, but absorption cost per unit will stay the same. IncorrectMarks for this submission: 0/1.Question 23 Marks: 1 Pat's Hats produces sun visors. Production data for the first month follow:

OctoberDirect materials cost per unit $0.75Direct labor cost per unit $1.50Variable manufacturing overhead cost per unit $0.25Total fixed manufacturing overhead costs $10,000Total fixed selling and administrative costs $40,000Number of units produced 20,000Number of unit sold 19,600Sale price per unit $10

What is the value of the October ending inventory using variable costing?Choose one answer.

a. $400

b. $1,000

c. $1,200

d. $200 IncorrectMarks for this submission: 0/1.Question 24 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00

Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.Calculate operating income for April, 2012 using absorption costing?Choose one answer.

a. $726,400

b. $625,800

c. $645,800

d. $626,400 IncorrectMarks for this submission: 0/1.Question 25 Marks: 1 Pat's Hats produces sun visors. Production data for the first month follow:

OctoberDirect materials cost per unit $0.75Direct labor cost per unit $1.50Variable manufacturing overhead cost per unit $0.25Total fixed manufacturing overhead costs $10,000Total fixed selling and administrative costs $40,000Number of units produced 20,000Number of unit sold 19,600Sale price per unit $10

What is the variable cost per hat for October?Choose one answer.

a. $2.25

b. $2.50

c. $5.00

d. $3.00 Correct

Marks for this submission: 1/1.Question 26 Marks: 1 Pat's Hats produces sun visors. Production data for the first month follow:

OctoberDirect materials cost per unit $0.75Direct labor cost per unit $1.50Variable manufacturing overhead cost per unit $0.25Total fixed manufacturing overhead costs $10,000Total fixed selling and administrative costs $40,000Number of units produced 20,000Number of unit sold 19,600Sale price per unit $10

What is the value of the October ending inventory using absorption costing?Choose one answer.

a. $200

b. $1,000

c. $400

d. $1,200 IncorrectMarks for this submission: 0/1.Question 27 Marks: 1 Roberta's Hot Stuff began making hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Roberta's Hot Stuff incurs monthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative cost of $8,000. On August 31, 2012 ending inventory was 10,000 soup packages. Assume Roberta's Hot Stuff produced 400,000 soup packages in September. Roberta's Hot Stuff sold 406,000 of the soup packages in September. Calculate the September ending inventory value using variable costing.Choose one answer.

a. $2,800

b. $3,200

c. $4,800

d. None–Roberta's sold more soup than they made. IncorrectMarks for this submission: 0/1.Question 28

Marks: 1 During the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000. If variable production costs totaled $100,000, what is the cost per unit using absorption costing?Choose one answer.

a. $7.35

b. $5.00

c. $7.00

d. $2.00 CorrectMarks for this submission: 1/1.Question 29 Marks: 1 Pat's Hats produces sun visors. Production data for the first month follow:

OctoberDirect materials cost per unit $0.75Direct labor cost per unit $1.50Variable manufacturing overhead cost per unit $0.25Total fixed manufacturing overhead costs $10,000Total fixed selling and administrative costs $40,000Number of units produced 20,000Number of unit sold 19,600Sale price per unit $10

What is the October net income using variable costing?Choose one answer.

a. $137,000

b. $97,000

c. $137,200

d. $97,200 IncorrectMarks for this submission: 0/1.Question 30 Marks: 1 Burrito-Blast makes bean and cheese burritos that it sells to grocery stores. The burritos sell for $1 each. Burrito-Blast had beginning inventory of $20,000 on June 1 for 80,000 burritos. During June the company produced 500,000 burritos. June production costs are as follows:

June

Cost of shells, beans & cheese used in production $10,000Direct labor costs for June $70,000Variable manufacturing overhead cost per burrito $20,000Total fixed manufacturing overhead costs $40,000Total fixed selling and administrative costs $25,000

The company's June 30 ending inventory consists of 20,000 burritos. Assuming they use FIFO costing, what is the absorption cost per burrito that is manufactured in June?Choose one answer.

a. $0.28

b. $0.20

c. $0.25

d. $0.33 IncorrectMarks for this submission: 0/1.Question 31 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.What is the Cost of Goods Sold for April, 2012 using variable costing?Choose one answer.

a. $1,369,200

b. $1,360,000

c. $1,311,000

d. $1,288,600 Incorrect

Marks for this submission: 0/1.Question 32 Marks: 1 Roberta's Hot Stuff began making hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Roberta's Hot Stuff incurs monthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative cost of $8,000. On August 31, 2012 ending inventory was 10,000 soup packages. Assume Roberta's Hot Stuff produced 400,000 soup packages in September. Roberta's Hot Stuff sold 406,000 of the soup packages in September. Calculate the total absorption cost per hot and sour soup package.Choose one answer.

a. $0.80

b. $0.82

c. $0.70

d. $0.72 CorrectMarks for this submission: 1/1.Question 33 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.What is the Cost of Goods Sold for April, 2012 using absorption costing?Choose one answer.

a. $1,369,200

b. $1,360,000

c. $1,311,000

d. $1,288,600

IncorrectMarks for this submission: 0/1.Question 34 Marks: 1 Mega-Thirst produces an energy drink called Mega-Caffeine. The drinks sell to grocery stores and other retailers for $10 a case. During September, the first month of production, the company used $65,000 of aluminum cans and $35,000 of syrup, soda and caffeine. September manufacturing wages were $60,000 and variable manufacturing overhead incurred was $20,000. September's fixed manufacturing overhead costs were $70,000 and fixed selling and administrative costs were $12,000. Selling commissions were $0.25 per case. Mega-Thirst sold 46, 000 of the 50,000 cases that were produced in September for $10 per case. Calculate the September ending inventory value income using absorption costing.Choose one answer.

a. $14,400

b. $20,000

c. $15,400

d. $0 IncorrectMarks for this submission: 0/1.Question 35 Marks: 1 Harold's produces windmills that store power for residential use. Production data for the first month follow:

MayDirect materials cost per unit $2.000Direct labor cost per unit $1,500Variable manufacturing overhead cost per unit $500Total fixed manufacturing overhead costs $12,000Total fixed selling and administrative costs $33,000Number of units produced 120Number of unit sold 105Sale price per unit $5,000

What is the value of the May ending inventory using absorption costing?Choose one answer.

a. $4,200

b. $61,500

c. $3,900

d. $60,000 Correct

Marks for this submission: 1/1.Question 36 Marks: 1 Roberta's Hot Stuff began making hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Roberta's Hot Stuff incurs monthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative cost of $8,000. On August 31, 2012 ending inventory was 10,000 soup packages. Assume Roberta's Hot Stuff produced 400,000 soup packages in September. Roberta's Hot Stuff sold 406,000 of the soup packages in September. Which method would result in the larger operating income and why?Choose one answer.

a. Absorption costing– because the fixed manufacturing costs are all expensed during September b. Variable costing– because the cost per unit is less, which means ending inventory costs are smaller c. Variable costing– because the fixed manufacturing costs are all expensed during September d. Absorption costing– because the cost per unit is more, which means ending inventory costs are larger

IncorrectMarks for this submission: 0/1.Question 37 Marks: 1 Burrito-Blast makes bean and cheese burritos that it sells to grocery stores. The burritos sell for $1 each. Burrito-Blast had beginning inventory of $20,000 on June 1 for 80,000 burritos. During June the company produced 500,000 burritos. June production costs are as follows:

JuneCost of shells, beans & cheese used in production $10,000Direct labor costs for June $70,000Variable manufacturing overhead cost per burrito $20,000Total fixed manufacturing overhead costs $40,000Total fixed selling and administrative costs $25,000

The company's June 30 ending inventory consists of 20,000 burritos. The employees receive a 5% salary bonus if they can keep per unit production cost under $.30 per burrito. Under which method would the employees receive a bonus?Choose one answer.

a. Neither

b. Absorption costing

c. Variable costing

d. Both Incorrect

Marks for this submission: 0/1.Question 38 Marks: 1 Mega-Thirst produces an energy drink called Mega-Caffeine. The drinks sell to grocery stores and other retailers for $10 a case. During September, the first month of production, the company used $65,000 of aluminum cans and $35,000 of syrup, soda and caffeine. September manufacturing wages were $60,000 and variable manufacturing overhead incurred was $20,000. September's fixed manufacturing overhead costs were $70,000 and fixed selling and administrative costs were $12,000. Selling commissions were $0.25 per case. Mega-Thirst sold 46, 000 of the 50,000 cases that were produced in September for $10 per case. Calculate the September operating income using absorption costing.Choose one answer.

a. $205,500

b. $200,900

c. $206,500

d. $199,900 IncorrectMarks for this submission: 0/1.Question 39 Marks: 1 Pat's Hats produces sun visors. Production data for the first month follow:

OctoberDirect materials cost per unit $0.75Direct labor cost per unit $1.50Variable manufacturing overhead cost per unit $0.25Total fixed manufacturing overhead costs $10,000Total fixed selling and administrative costs $40,000Number of units produced 20,000Number of unit sold 19,600

If employees receive a 3% salary bonus for keeping production costs per unit under $3.00, which method would result in a bonus?Choose one answer.

a. Neither

b. Both would yield the same bonus.

c. Absorption costing

d. Variable costing IncorrectMarks for this submission: 0/1.

Question 40 Marks: 1 Burrito-Blast makes bean and cheese burritos that it sells to grocery stores. The burritos sell for $1 each. Burrito-Blast had beginning inventory of $20,000 on June 1 for 80,000 burritos. During June the company produced 500,000 burritos. June production costs are as follows:

JuneCost of shells, beans & cheese used in production $10,000Direct labor costs for June $70,000Variable manufacturing overhead cost per burrito $20,000Total fixed manufacturing overhead costs $40,000Total fixed selling and administrative costs $25,000

The company's June 30 ending inventory consists of 20,000 burritos. Assuming they use FIFO costing, calculate the June net income using absorption costing?Choose one answer.

a. $379,000

b. $340,400

c. $380,600

d. $358,200 IncorrectMarks for this submission: 0/1.Question 41 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.What is the Cost of Goods Sold for March, 2012 using variable costing?Choose one answer.

a. $1,240,000

b. $1,320,000

c. $1,317,000

d. $1,237,000 IncorrectMarks for this submission: 0/1.Question 42 Marks: 1 If a company's beginning and ending inventory count is the same and production cost per unit are the same; then, the cost of goods sold must be the same dollar amount whether using variable or absorption costingChoose one answer.

a. True

b. False IncorrectMarks for this submission: 0/1.Question 43 Marks: 1 Burrito-Blast makes bean and cheese burritos that it sells to grocery stores. The burritos sell for $1 each. Burrito-Blast had beginning inventory of $20,000 on June 1 for 80,000 burritos. During June the company produced 500,000 burritos. June production costs are as follows:

JuneCost of shells, beans & cheese used in production $10,000Direct labor costs for June $70,000Variable manufacturing overhead cost per burrito $20,000Total fixed manufacturing overhead costs $40,000Total fixed selling and administrative costs $25,000

The company's June 30 ending inventory consists of 20,000 burritos. Which method would result in the larger operating income and why?Choose one answer.

a. Variable costing– because the cost per unit is less, which means ending inventory costs are smaller b. Absorption costing– because the cost per unit is more, which means ending inventory costs are larger c. Absorption costing– because the fixed manufacturing costs are all expensed during September d. Variable costing– because the fixed manufacturing costs are all expensed during September

IncorrectMarks for this submission: 0/1.

Question 44 Marks: 1 An increase in inventory will cause which of the following when comparing operating income under absorption and variable costing?Choose one answer.

a. The same operating income under both variable costing and absorption costing

b. A higher operating income under variable costing

c. A lower cost of goods sold and a higher operating income under absorption costing

d. A lower operating income under variable costing IncorrectMarks for this submission: 0/1.Question 45 Marks: 1 Harold's produces windmills that store power for residential use. Production data for the first month follow:

MayDirect materials cost per unit $2.000Direct labor cost per unit $1,500Variable manufacturing overhead cost per unit $500Total fixed manufacturing overhead costs $12,000Total fixed selling and administrative costs $33,000Number of units produced 120Number of unit sold 105Sale price per unit $5,000

What is the cost per unit for May using absorption costing?Choose one answer.

a. $4,200

b. $4,100

c. $3,900

d. $4,000 IncorrectMarks for this submission: 0/1.Question 46 Marks: 1 Harold's produces windmills that store power for residential use. Production data for the first month follow:

MayDirect materials cost per unit $2.000

Direct labor cost per unit $1,500Variable manufacturing overhead cost per unit $500Total fixed manufacturing overhead costs $12,000Total fixed selling and administrative costs $33,000Number of units produced 120Number of unit sold 105Sale price per unit $5,000

What is the value of the May ending inventory using variable costing?Choose one answer.

a. $3,900

b. $4,200

c. $60,000

d. $61,500 IncorrectMarks for this submission: 0/1.Question 47 Marks: 1 Roberta's Hot Stuff began making hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Roberta's Hot Stuff incurs monthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative cost of $8,000. On August 31, 2012 ending inventory was 10,000 soup packages. Assume Roberta's Hot Stuff produced 400,000 soup packages in September. Roberta's Hot Stuff sold 406,000 of the soup packages in September. Calculate the September net income using absorption costing.Choose one answer.

a. $487,200

b. $479,800

c. $527,800

d. $479,200 IncorrectMarks for this submission: 0/1.Question 48 Marks: 1 Roberta's Hot Stuff began making hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Roberta's Hot Stuff incurs monthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative cost of $8,000. On August 31, 2012 ending inventory was 10,000 soup packages. Assume Roberta's Hot Stuff produced 400,000 soup packages in September. Roberta's Hot Stuff sold 406,000 of the soup packages in September. Calculate the September net income using variable costing.Choose one answer.

a. $479,800

b. $527,800

c. $479,200

d. $487,200 IncorrectMarks for this submission: 0/1.Question 49 Marks: 1 Pat's Hats produces sun visors. Production data for the first month follow:

OctoberDirect materials cost per unit $0.75Direct labor cost per unit $1.50Variable manufacturing overhead cost per unit $0.25Total fixed manufacturing overhead costs $10,000Total fixed selling and administrative costs $40,000Number of units produced 20,000Number of unit sold 19,600

The production manager will receive a 3% salary bonus if production costs per unit under $3.00. After reviewing October results, he decides to increase production in November to 21,000 units. If demand for the product is stable, which accounting method is the company most likely using to determine the manager's bonus?Choose one answer.

a. Both would yield the same bonus.

b. Neither

c. Absorption costing

d. Variable costing IncorrectMarks for this submission: 0/1.Question 50 Marks: 1 Harold's produces windmills that store power for residential use. Production data for the first month follow:

MayDirect materials cost per unit $2.000Direct labor cost per unit $1,500Variable manufacturing overhead cost per unit $500Total fixed manufacturing overhead costs $12,000

Total fixed selling and administrative costs $33,000Number of units produced 120Number of unit sold 105Sale price per unit $5,000

If Harold's had beginning inventory of 10 units that had a $3,000 absorption cost per unit, what would be the cost of the ending inventory under absorption costing?Choose one answer.

a. $102,500

b. $4,100

c. $91,500

d. $60,000 IncorrectMarks for this submission: 0/1.Question 51 Marks: 1 Burrito-Blast makes bean and cheese burritos that it sells to grocery stores. The burritos sell for $1 each. Burrito-Blast had beginning inventory of $20,000 on June 1 for 80,000 burritos. During June the company produced 500,000 burritos. June production costs are as follows:

JuneCost of shells, beans & cheese used in production $10,000Direct labor costs for June $70,000Variable manufacturing overhead cost per burrito $20,000Total fixed manufacturing overhead costs $40,000Total fixed selling and administrative costs $25,000

The company's June 30 ending inventory consists of 20,000 burritos. Assuming they use FIFO costing, what is the variable cost per burrito for a burrito that is manufactured in June?Choose one answer.

a. $0.33

b. $0.28

c. $0.25

d. $0.20 IncorrectMarks for this submission: 0/1.Question 52 Marks: 1 Mega-Thirst produces an energy drink called Mega-Caffeine. The drinks sell to grocery stores and other retailers for $10 a case. During September, the first month of production, the company used $65,000 of aluminum cans and $35,000 of syrup, soda and caffeine. September

manufacturing wages were $60,000 and variable manufacturing overhead incurred was $20,000. September's fixed manufacturing overhead costs were $70,000 and fixed selling and administrative costs were $12,000. Selling commissions were $0.25 per case. Mega-Thirst sold 46, 000 of the 50,000 cases that were produced in September for $10 per case. Calculate the September production cost per case using variable costing.Choose one answer.

a. $3.60

b. $3.85

c. $5.00

d. $5.85 IncorrectMarks for this submission: 0/1.Question 53 Marks: 1 During the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000. If variable production costs totaled $100,000, what is the cost per unit using variable costing?Choose one answer.

a. $7.35

b. $5.00

c. $7.00

d. $2.00 IncorrectMarks for this submission: 0/1.Question 54 Marks: 1 During the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000. An absorption costing income statement would report the fixed manufacturing costs as a:Choose one answer.

a. $40,000 deduction from sales revenue to obtain operating income.

b. $34,000 deduction from gross profit to obtain operating income.

c. $40,000 deduction from sales revenue to obtain contribution margin.

d. $34,000 deduction from sales revenue to obtain gross profit. IncorrectMarks for this submission: 0/1.Question 55 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.What is the value of the ending inventory on March 31, 2012 using absorption costing?Choose one answer.

a. $33,000

b. $30,000

c. $31,000

d. $32,500 IncorrectMarks for this submission: 0/1.Question 56 Marks: 1 During the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000. If variable production costs were $100,000, an absorption costing income statement would report the variable manufacturing costs as a:Choose one answer.

a. $100,000 deduction from sales revenue to obtain gross profit.

b. $85,000 deduction from sales revenue to obtain contribution margin.

c. part of cost of goods sold.

d. $100,000 deduction from sales revenue to obtain contribution margin. IncorrectMarks for this submission: 0/1.Question 57 Marks: 1 Seattle Enterprises produces packaged fresh meals that sell for $10 each. During the current month, Seattle produced 2,800 meals, but only sold 2,700 meals. The variable cost per meal was $6 and the sales commissions per meal were $1. Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200. Net income under absorption costing would be:Choose one answer.

a. $9,450.

b. $5,550.

c. $10,800.

d. $5,500. IncorrectMarks for this submission: 0/1.Question 58 Marks: 1 Seattle Enterprises produces packaged fresh meals that sell for $10 each. During the current month, Seattle produced 2,800 meals, but only sold 2,700 meals. The variable cost per meal was $6 and the sales commissions per meal were $1. Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200. Gross profit under absorption costing would be:Choose one answer.

a. $9,450.

b. $10,800.

c. $8,250.

d. $5,550. IncorrectMarks for this submission: 0/1.Question 59 Marks: 1 During the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000. A variable costing income statement would report the fixed manufacturing costs as a:Choose one answer.

a. $34,000 deduction from gross profit to obtain operating income.

b. $40,000 deduction from sales revenue to obtain gross profit.

c. $34,000 deduction from sales revenue to obtain gross profit.

d. $40,000 deduction from sales revenue to obtain contribution margin. IncorrectMarks for this submission: 0/1.Question 60 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell $11.00 $12.00

phoneTotal fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.Calculate operating income for March, 2012 using variable costing?Choose one answer.

a. $663,000

b. $583,000

c. $763,000

d. $683,000 IncorrectMarks for this submission: 0/1.Question 61 Marks: 1 Burrito-Blast makes bean and cheese burritos that it sells to grocery stores. The burritos sell for $1 each. Burrito-Blast had beginning inventory of $20,000 on June 1 for 80,000 burritos. During June the company produced 500,000 burritos. June production costs are as follows:

JuneCost of shells, beans & cheese used in production $10,000Direct labor costs for June $70,000Variable manufacturing overhead cost per burrito $20,000Total fixed manufacturing overhead costs $40,000Total fixed selling and administrative costs $25,000

The company's June 30 ending inventory consists of 20,000 burritos. The sales manager receives a 5% bonus based on monthly operating income. Which method would result in the larger bonus?Choose one answer.

a. Absorption costing

b. Both would yield the same bonus.

c. Neither

d. Variable costing IncorrectMarks for this submission: 0/1.

Question 62 Marks: 1 Seattle Enterprises produces packaged fresh meals which it sells for $10 each. During the current month, Seattle produced 2,800 meals, but only sold 2,700 meals. The variable cost per meal was $6 and the sales commissions per meal were $1. Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200. Contribution margin profit under variable costing would be:Choose one answer.

a. $9,450.

b. $8,250.

c. $10,800.

d. $5,550. IncorrectMarks for this submission: 0/1.Question 63 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.What is the absorption cost per cell phone for March and April production?Choose one answer.

a. $32.00 in March and $33.00 in april

b. $30.50 in March and $32.00 in april

c. $33.00 in March and $34.00 in april

d. $31.00 in March and $32.00 in april IncorrectMarks for this submission: 0/1.Question 64

Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.What is the Cost of Goods Sold for March, 2012 using absorption costing?Choose one answer.

a. $1,237,000

b. $1,320,000

c. $1,317,000

d. $1,240,000 IncorrectMarks for this submission: 0/1.Question 65 Marks: 1 If production exceeds units sold, which of the following statements is correct?Choose one answer.

a. The same operating income will result under both a variable costing and absorption costing income statement. b. A higher operating income will result under a variable costing income statement.

c. A lower operating income will result under an absorption costing income statement.

d. A higher operating income will result under an absorption costing income statement. IncorrectMarks for this submission: 0/1.Question 66 Marks: 1 Hi-Tech manufactures basic cell phones for cell phone service providers. Data for March and April's production follows:

March, 2012 April, 2012Direct materials cost per cell phone $6.00 $6.00Direct labor cost per cell phone $14.00 $14.00Variable manufacturing overhead cost per cell phone $11.00 $12.00Total fixed manufacturing overhead costs $80,000 $80,000Total fixed selling and administrative costs $20,000 $20,000Units produced 40,000 40,000Units sold 40,000 40,300Sale price per cell phone $50 $50

Hi-Tech started March with 1,000 cell phones that had variable costs of $28.00 per phone and fixed manufacturing costs of $2.00 per phone. Hi-Tech uses a FIFO cost flow.What is the value of the ending inventory on March 31, 2012 using variable costing?Choose one answer.

a. $31,000

b. $33,000

c. $30,000

d. $32,500 IncorrectMarks for this submission: 0/1.Question 67 Marks: 1 Mega-Thirst produces an energy drink called Mega-Caffeine. The drinks sell to grocery stores and other retailers for $10 a case. During September, the first month of production, the company used $65,000 of aluminum cans and $35,000 of syrup, soda and caffeine. September manufacturing wages were $60,000 and variable manufacturing overhead incurred was $20,000. September's fixed manufacturing overhead costs were $70,000 and fixed selling and administrative costs were $12,000. Selling commissions were $0.25 per case. Mega-Thirst sold 46, 000 of the 50,000 cases that were produced in September for $10 per case.

If the company predicts it can reduce manufacturing wages in October, and all other costs would remain the same, how will this affect per unit costs?Choose one answer.

a. Variable cost per unit will decrease, but absorption cost per unit will stay the same.

b. There will be no change to either.

c. Variable cost per unit will decrease, and absorption cost per unit will decrease.

d. Variable cost per unit will stay the same, but absorption cost per unit will decrease. IncorrectMarks for this submission: 0/1.Question 68

Marks: 1 Roberta's Hot Stuff began making hot and sour soup in August, 2012. The soup sells for $2 for a large package. Variable production costs are $0.70 per package. Roberta's Hot Stuff incurs monthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative cost of $8,000. On August 31, 2012 ending inventory was 10,000 soup packages. Assume Roberta's Hot Stuff produced 400,000 soup packages in September. Roberta's Hot Stuff sold 406,000 of the soup packages in September. Calculate the September ending inventory value using absorption costing.Choose one answer.

a. None–Roberta's sold more soup than they made.

b. $4,800

c. $2,800

d. $3,200 IncorrectMarks for this submission: 0/1.Question 69 Marks: 1 Assuming no beginning inventory and monthly production is greater than sales. Management who are paid a bonus based on operating income would receive a larger bonus under variable costing, because only the variable costs will be deducted in deriving operating income.Choose one answer.

a. True

b. False IncorrectMarks for this submission: 0/1.Question 70 Marks: 1 Harold's produces windmills that store power for residential use. Production data for the first month follow:

MayDirect materials cost per unit $2.000Direct labor cost per unit $1,500Variable manufacturing overhead cost per unit $500Total fixed manufacturing overhead costs $12,000Total fixed selling and administrative costs $33,000Number of units produced 120Number of unit sold 105Sale price per unit $5,000

What is the cost per unit for May using variable costing?Choose one answer.

a. $4,000

b. $4,200

c. $4,100

d. $3,900