Reference no: EM132501021

Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced 3,700

Variable costs per unit:

Direct materials $ 132

Direct labor $ 93

Variable manufacturing overhead $ 5

Variable selling and administrative expense $ 12

Fixed costs:

Fixed manufacturing overhead $ 148,000

Fixed selling and administrative expense $ 288,600

Question 1: There were no beginning or ending inventories. The absorption costing unit product cost was:

Multiple Choice

$225 per unit
$270 per unit
$230 per unit
$360 per unit

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price $ 148

Units in beginning inventory 0

Units produced 3,200

Units sold 2,870

Units in ending inventory 330

Variable costs per unit:

Direct materials $ 45

Direct labor $ 23

Variable manufacturing overhead $ 7

Variable selling and administrative expense $ 19

Fixed costs:

Fixed manufacturing overhead $ 112,000

Fixed selling and administrative expense $ 34,440

Question 2: The total gross margin for the month under absorption costing is:

Multiple Choice

$109,060
$20,090
$144,180
$154,980

Question 3: Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $39,800 and the Export Products Division's divisional segment margin is $92,200. The total amount of common fixed expenses not traceable to the individual divisions is $104,400. What is the company's net operating income (loss)?

Multiple Choice

$236,400
$132,000
$27,600
($132,000)

Helmers Corporation manufactures a single product. Variable costing net operating income last year was $97,000 and this year was $116,300. Last year, $36,200 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $13,700 in fixed manufacturing overhead costs were deferred in inventory under absorption costing.

Question 4: What was the absorption costing net operating income last year?

Multiple Choice

$102,600
$97,000
$60,800
$133,200

Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $340,000, variable expenses of $185,000, and traceable fixed expenses of $41,000. During the same month, the West business segment had sales revenues of $1,010,000, variable expenses of $520,000, and traceable fixed expenses of $193,000. The common fixed expenses totaled $294,000 and were allocated as follows: $147,000 to the East business segment and $147,000 to the West business segment.

Question 5: The contribution margin of the West business segment is:

Multiple Choice

$490,000
$(39,000)
$657,000
$114,000