81. Gage Company reports the following information for its first year of operations:
Units produced this year
|
7,000 units
|
Units sold this year
|
6,500 units
|
Direct materials
|
$22 per unit
|
Direct labor
|
$30 per unit
|
Variable overhead
|
? in total
|
Fixed overhead
|
$56,000 in total
|
If the company’s cost per unit of finished goods using variable costing is $63, what is total variable overhead?
A. $21,000
B. $71,500
C. $77,000
D. $19,500
E. $16,590
82. A company reports the following information for its first year of operations:
Units produced this year
|
650 units
|
Units sold this year
|
500 units
|
Direct materials
|
$750 per unit
|
Direct labor
|
$1,000 per unit
|
Variable overhead
|
? in total
|
Fixed overhead
|
$308,750 in total
|
If the company’s cost per unit of finished goods using variable costing is $2,375, what is total variable overhead?
A. $237,500
B. $75,000
C. $312,500
D. $406,250
E. $97,500
83. Magenta Inc. reports the following information for the current year which is its first year of operations:
Units produced this year
|
750,000 units
|
Units sold this year
|
740,000 units
|
Direct materials
|
$18.30 per unit
|
Direct labor
|
$14.20 per unit
|
Variable overhead
|
? in total
|
Fixed overhead
|
$4,500,000 in total
|
If the company’s cost per unit of finished goods using absorption costing is $39.75, what is total variable overhead?
A. $925,000
B. $877,500
C. $937,500.
D. $865,800
E. $5,437,500
84. A company reports the following information for its first year of operations:
Units produced this year
|
43,000 units
|
Units sold this year
|
39,000 units
|
Direct materials
|
$0.57 per unit
|
Direct labor
|
$0.83 per unit
|
Variable overhead
|
$26,660 in total
|
Fixed overhead
|
? in total
|
If the company’s cost per unit of finished goods using variable costing is $2.02, what is the amount of total fixed overhead?
A. $26,660
B. $35,690
C. $24,510
D. Some other amount
E. Cannot be determined from the given data.
85. A company reports the following information for its first year of operations:
Units produced this year
|
? units
|
Units sold this year
|
1,500 units
|
Direct materials
|
$9 per unit
|
Direct labor
|
$5 per unit
|
Variable overhead
|
$7 per unit
|
Fixed overhead
|
$24,000 in total
|
If the company’s cost per unit of finished goods using absorption costing is $27, how many units were produced?
A. 4,000 units.
B. 3,600 units.
C. 1,846 units.
D. 2,667 units.
E. 2,000 units.
86. Romtech Company sold 43,000 units of its product at a price of $300 per unit. Total variable cost per unit is $175, consisting of $168 in variable production cost and $7 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.
A. $5,375,000
B. $5,676,000
C. $12,599,000
D. $12,900,000
E. $7,525,000
87. Chance, Inc. sold 3,000 units of its product at a price of $72 per unit. Total variable cost per unit is $51, consisting of $32 in variable production cost and $19 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.
A. $96,000
B. $63,000
C. $120,000
D. $216,000
E. ($90,000)
88. Vision Tester, Inc., a manufacturer of optical glass, began operations on February 1 of the current year. During this time, the company produced 900,000 units and sold 800,000 units at a sales price of $12 per unit. Cost information for this year is shown in the following table:
Production costs
|
|
Direct materials
|
$.80 per unit
|
Direct labor
|
$.70 per unit
|
Variable overhead
|
$500,000 in total
|
Fixed overhead
|
$450,000 in total
|
Non-production costs
|
|
Variable selling and administrative
|
$30,000 in total
|
Fixed selling and administrative
|
$490,000 in total
|
Given this information, which of the following is true?
A. Net income under variable costing will exceed net income under absorption costing by $50,000.
B) Net income under absorption costing will exceed net income under variable costing by $50,000.
C. Net income will be the same under both absorption and variable costing.
D. Net income under variable costing will exceed net income under absorption costing by $60,000.
E. Net income under absorption costing will exceed net income under variable costing by $60,000.
Reference: 19_02
Star Services, Inc., a manufacturer of telescopes, began operations on October 1 of the current year. During this time, the company produced 50,000 units and sold 35,000 units at a sales price of $500 per unit. Cost information for this year is shown in the following table:
Production costs
|
|
Direct materials
|
$85 per unit
|
Direct labor
|
$65 per unit
|
Variable overhead
|
$200,000 in total
|
Fixed overhead
|
$350,000 in total
|
Nonproduction costs
|
|
Variable selling and administrative
|
$90,000 in total
|
Fixed selling and administrative
|
$500,000 in total
|
89. Given the Star Services, Inc. data, what is net income using absorption costing?
A. $18,670,000
B. $18,774,000
C. $16,360,000
D. $11,275,000
E. $11,170,000
90. Given the Star Services Inc. data, what is net income using variable costing?
A. $18,670,000
B. $18,774,000
C. $16,360,000
D. $11,274,000
E. $11,170,000
Reference: 19_03
Scavenger Company, a manufacturer of recycling bins, began operations on January 1 of the current year. During this time, the company produced 60,000 units and sold 55,000 units at a sales price of $15 per unit. Cost information for this year is shown in the following table:
Production costs
|
|
Direct materials
|
$2.50 per unit
|
Direct labor
|
$3.00 per unit
|
Variable overhead
|
$45,000 in total
|
Fixed overhead
|
$240,000 in total
|
Nonproduction costs
|
|
Variable selling and administrative
|
$10,000 in total
|
Fixed selling and administrative
|
$50,000 in total
|