71. Sea Company reports the following information regarding its production cost. Units produced 42,000 units Direct labor $35 per unit Direct materials $28 per unit ...







71. Sea Company reports the following information regarding its production cost.



























Units produced




42,000 units




Direct labor




$35 per unit




Direct materials




$28 per unit




Variable overhead




$17 per unit




Fixed overhead




$105,000 in total





Compute production cost per unit under variable costing.
A. $28.00
B. $82.50
C. $80.00
D. $63.00
E. $35.00







72. Sea Company reports the following information regarding its production cost:



























Units produced




42,000 units




Direct labor




$35 per unit




Direct materials




$28 per unit




Variable overhead




$17 per unit




Fixed overhead




$105,000 in total





Compute production cost per unit under absorption costing.
A. $28.00
B. $82.50
C. $80.00
D. $63.00
E. $35.00







Reference: 19_01



Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.































Units produced this year




25,000 units




Units sold this year




15,000 units




Direct materials




$9 per unit




Direct labor




$11 per unit




Variable overhead




$75,000 in total




Fixed overhead




$137,500 in total








73. Given Advanced Company’s data, compute cost per unit of finished goods under variable costing.
A. $20.00
B. $25.00
C. $21.88
D. $23.00
E. $28.50







74. Given Advanced Company’s data, compute cost per unit of finished goods under absorption costing.
A. $20.00
B. $34.17
C. $25.32
D. $23.00
E. $28.50







75. Given Advanced Company’s data, compute cost of finished goods in inventory under absorption costing.
A. $285,000
B. $712,500
C. $427,500
D. $230,000
E. $345,000







76. Given Advanced Company’s data, compute cost of finished goods in inventory under variable costing.
A. $285,000
B. $712,500
C. $427,500
D. $230,000
E. $345,000







77. Given Advanced Company’s data, and the knowledge that the product is sold for $50 per unit and operating expenses are $200,000, compute the net income under absorption costing.



A. $55,000



B. $67,500



C. $80,500
D. $122,500



E. $205,000







78. Given Advanced Company’s data, and the knowledge that the product is sold for $50 per unit and operating expenses are $200,000, compute the net income under variable costing.



A. $55,000



B. $67,500



C. $80,500
D. $122,500



E. $205,000







79. Clear Company reports the following information for its first year of operations:































Units produced this year




50,000 units




Units sold this year




49,000 units




Direct materials




$7 per unit




Direct labor




$3 per unit




Variable overhead




$210,000 in total




Fixed overhead




? in total





If the company’s cost per unit of finished goods using absorption costing is $19.30, what is total fixed overhead?
A. $350,000
B. $255,000
C. $150,000
D. $249,900
E. $147,000









































80. Cloudy Company reports the following information for the current year:

































Units produced this year




51,000 units




Units sold this year




53,000 units




Direct materials




$6 per unit




Direct labor




$3 per unit




Variable overhead




$255,000 in total




Fixed overhead




? in total





If the company’s cost per unit of finished goods using absorption costing is $18, what is total fixed overhead?



A. $204,000
B. $212,000
C. $213,690
D. $222,070
E. $459,000







































May 15, 2022
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