5.) Farron Corporation, which has only one product, has provided the following d

Question

5.) Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

  Selling price

$132

  Units in beginning inventory

0

  Units produced

9,200

  Units sold

8,800

  Units in ending inventory

400

  Variable costs per unit:

    Direct materials

$23

    Direct labor

$65

    Variable manufacturing overhead

$11

    Variable selling and administrative

$15

  Fixed costs:

    Fixed manufacturing overhead

$138,000

    Fixed selling and administrative

$9,300

What is the net operating income for the month under absorption costing?

$28,500

$11,100

$17,100

       $6,000

6.) Aaker Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

  Selling price

$163

  Units in beginning inventory

0

  Units produced

7,100

  Units sold

6,800

  Units in ending inventory

300

  Variable costs per unit:

    Direct materials

$28

    Direct labor

$58

    Variable manufacturing overhead

$22

    Variable selling and administrative

$22

  Fixed costs:

    Fixed manufacturing overhead

$191,700

    Fixed selling and administrative

$28,800

What is the unit product cost for the month under variable costing?

$130 per units

$157 per units

$135 per units

$108 per units

7.) Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

  Selling price

$171

  Units in beginning inventory

0

  Units produced

7,200

  Units sold

6,900

  Units in ending inventory

300

  Variable costs per unit:

    Direct materials

$30

    Direct labor

$60

    Variable manufacturing overhead

$24

    Variable selling and administrative

$24

  Fixed costs:

    Fixed manufacturing overhead

$194,400

    Fixed selling and administrative

$29,400

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

What is the unit product cost for the month under absorption costing?

$141 per unit

$114 per unit

$138 per unit

$165 per unit

8.) Harris Corporation produces a single product. Last year, Harris manufactured 33,910 units and sold 28,100 units. Production costs for the year were as follows:

  Fixed manufacturing overhead

$474,740

  Variable manufacturing overhead

$284,844

  Direct labor

$176,332

  Direct materials

$247,543

Sales were $1,405,000, for the year, variable selling and administrative expenses were $148,930, and fixed selling and administrative expenses were $247,543. There was no beginning inventory. Assume that direct labor is a variable cost.

The contribution margin per unit would be: (Do not round intermediate calculations.)

$24.90 per unit

$23.80 per unit

$29.10 per unit

$19.30 per unit

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

Selling price

$89

Units in beginning inventory

0

Units produced

4,300

Units sold

4,000

Units in ending inventory

300

Variable costs per unit:

    Direct materials

$13

    Direct labor

$35

   Variable manufacturing overhead

$1

   Variable selling and administrative

$10

Fixed costs:

   Fixed manufacturing overhead

$77,400

   Fixed selling and administrative

$24,000

The total contribution margin for the month under variable costing is:

$160,000

$88,000

$42,600

$120,000

5.) Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Explanation / Answer

7) calculation for unit produced cost under absorbtion costing:

direct material                                                         30

variable manufacturing overhead                            24

fixed manufacturing overhead                                

(194000/7200)                                                         27

                                                                                         $141

8) calculation for contribution margin per unit:

total revenue                                              1,405,000

less: total variable cost

direct material                  247,543

direct labour                      176,332

variable manufring oh        284,844

variable selling & oh exp    148,930

                                                             547351

5) calculation for net operating income under aborbtion costing: units sold 8800 x $ 132 1161600 less: cost of goods sold beginning inventory nil cost of goods manufactured 1048800 (9200*114) 1048800 less: closing inventory (400*114) 45600 1003200 GROSS PROFIT 158400 LESS: varable exp (8800*15) 132000 LESS: fixed exp 9300 net operating income 17100 Calculation for production for the period: manufacturing cost per unit: unit sold 8800 closing stock 400 variable: 99 total inventory available 9200 (dm+dl+vmo) for sale fixed 15 less: opening inventory nil (138000/9200) production for the period 9200 114 6) calculation for the unit produced cost under variable costing: direct material 28 direct labour 58 variable manufacturing overhead 22                                                                                                     $108

7) calculation for unit produced cost under absorbtion costing:

direct material                                                         30

direct labour                                                            60

variable manufacturing overhead                            24

fixed manufacturing overhead                                

(194000/7200)                                                         27

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