iClicker_022111_and_selected_CH_6_slides

iClicker_022111_and_selected_CH_6_slides - On variable vs....

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Unformatted text preview: On variable vs. absorption costing The principal difference between variable costing and absorption costing centers on whether: A.variable manufacturing costs should be included as product costs B.fixed manufacturing costs and fixed selling and administrative costs should be included as product costs C.fixed manufacturing costs should be included as product costs D.all of these are differences. 1 Convery - Spring 2011 Unit cost under absorption costing The Celie Company reports the following: Unit product cost under variable costing $5.20 per unit Fixed manufacturing overhead cost for the year $260,000 Fixed selling and administrative cost for the year $180,000 Units (toys) produced and sold 400,000 What is Celies unit product cost under absorption costing for last year? 2 Convery - Spring 2011 On value of ending inventory 8,000 units are in beginning inventory, 50,000 produced during the year, and 55,000 were sold. The value of ending inventory is: A.greater under variable costing than absorption B.greater under absorption costing than variable costing. C.the same under both variable and absorption costing. 3 Convery - Spring 2011 NOI under variable costing No beginning inventory; 100,000 units produced; 98,000 units sold. Selling price per unit $10.00 Variable costs per unit: Direct materials $1.50 Direct labor $2.50 Variable manufacturing overhead $1.00 Variable selling and administrative $2.00 Fixed costs per year: Fixed manufacturing overhead $200,000 Fixed selling and administrative...
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iClicker_022111_and_selected_CH_6_slides - On variable vs....

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