TF 1. Variable manufacturing overhead costs are treated as period costs under bo
ID: 2368006 • Letter: T
Question
TF
1.
Variable manufacturing overhead costs are treated as period costs under both absorption and variable costing.
A) True
B) False
2.
The unit product cost under absorption costing does not include fixed manufacturing overhead cost.
A) True
B) False
3.
In segment reporting, sales dollars is usually an appropriate allocation base for selling, general, and administrative expenses.
A) True
B) False
MC
10.
TB147 Vanstee Corporation manufactures a variety of products. Variable costing net operating income last year was $60,000 and this year was $67,000. Last year, $37,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costi
TB 147 Vanstee Corporation manufactures a variety of products. Variable costing net operating income last year was $60,000 and this year was $67,000. Last year, $37,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing. This year, $8,000 in fixed manufacturing overhead costs were released from inventory under absorption costing.
What was the absorption costing net operating income this year?
A) $38,000
B) $96,000
C) $75,000
D) $59,000
Explanation / Answer
1 B) False 2 B) False 3 A) True 4 A) Option A 5 C) $13 6 B) $130 7 A) higher than the net operating income under variable costing 8 D) Option D 9 D) $43.00 10 D) $59,000
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