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The net operating income for the year under super-variable costing is:


A) $782,000
B) $446,000
C) $(202,000)
D) $296,000

E) A) and B)
F) A) and C)

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Mendoza Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Mendoza Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 47,000 units and sold 45,000 units. The company's only product is sold for $275 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses a variable costing system that assigns $24 of direct labor cost to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year. c. Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes. The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 47,000 units and sold 45,000 units. The company's only product is sold for $275 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses a variable costing system that assigns $24 of direct labor cost to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year. c. Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes.

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a. Under super-variable costing, the uni...

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Goodwyn Corporation manufactures and sells one product. In the company's first year of operations, the variable cost consisted solely of direct materials of $89 per unit. The annual fixed costs were $1,269,000 of direct labor cost, $3,619,000 of fixed manufacturing overhead expense, and $1,260,000 of fixed selling and administrative expense. The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 47,000 units and sold 42,000 units. The company's only product is sold for $259 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses a variable costing system that assigns $27 of direct labor cost to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.

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a. Under super-variable costin...

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Assume that the company uses a variable costing system that assigns $19 of direct labor cost to each unit that is produced. The net operating income under this costing system is:


A) $532,000
B) $399,000
C) $(210,000)
D) $882,000

E) B) and C)
F) A) and D)

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A

Quiller Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Quiller Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $233 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $12 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year? A) Super-variable costing net operating income exceeds variable costing net operating income by $63,000. B) Super-variable costing net operating income exceeds variable costing net operating income by $12,000. C) Variable costing net operating income exceeds super-variable costing net operating income by $12,000. D) Variable costing net operating income exceeds super-variable costing net operating income by $63,000. The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 32,000 units and sold 31,000 units. The company's only product is sold for $233 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $12 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?


A) Super-variable costing net operating income exceeds variable costing net operating income by $63,000.
B) Super-variable costing net operating income exceeds variable costing net operating income by $12,000.
C) Variable costing net operating income exceeds super-variable costing net operating income by $12,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $63,000.

E) A) and B)
F) A) and C)

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Assume that the company uses a variable costing system that assigns $22 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:


A) $212 per unit
B) $84 per unit
C) $167 per unit
D) $106 per unit

E) A) and D)
F) A) and C)

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D

Assume that the company uses a variable costing system that assigns $16 of direct labor cost to each unit that is produced. The net operating income under this costing system is:


A) $856,000
B) $544,000
C) $808,000
D) $1,066,000

E) All of the above
F) A) and B)

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Under super-variable costing, which of the following is treated as a period cost? Under super-variable costing, which of the following is treated as a period cost? A) Option A B) Option B C) Option C D) Option D


A) Option A
B) Option B
C) Option C
D) Option D

E) All of the above
F) None of the above

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Assume that the company uses a variable costing system that assigns $18 of direct labor cost to each unit that is produced. The net operating income under this costing system is:


A) $78,000
B) $405,000
C) $351,000
D) $594,000

E) A) and B)
F) None of the above

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The net operating income for the year under super-variable costing is:


A) $856,000
B) $544,000
C) $808,000
D) $1,066,000

E) B) and D)
F) None of the above

Correct Answer

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Assume that the company uses a variable costing system that assigns $22 of direct labor cost to each unit that is produced. The net operating income under this costing system is:


A) $714,000
B) $824,000
C) $802,000
D) $880,000

E) A) and B)
F) All of the above

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Griffy Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Griffy Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 30,000 units and sold 23,000 units. The company's only product is sold for $239 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses an absorption costing system that assigns $14 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year. c. Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes. The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 30,000 units and sold 23,000 units. The company's only product is sold for $239 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses an absorption costing system that assigns $14 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year. c. Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes.

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a. Under super-variable costing, the uni...

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The company is considering using either super-variable costing or a variable costing system that assigns $14 of direct labor cost to each unit that is produced. Which of the following statements is true regarding the net operating income in the first year?


A) Super-variable costing net operating income exceeds variable costing net operating income by $98,000.
B) Variable costing net operating income exceeds super-variable costing net operating income by $98,000.
C) Super-variable costing net operating income exceeds variable costing net operating income by $448,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $448,000.

E) B) and D)
F) None of the above

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Assume that the company uses a variable costing system that assigns $16 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:


A) $104 per unit
B) $174 per unit
C) $88 per unit
D) $213 per unit

E) A) and D)
F) A) and C)

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The unit product cost under super-variable costing is:


A) $93 per unit
B) $171 per unit
C) $107 per unit
D) $219 per unit

E) All of the above
F) A) and D)

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A

Calder Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Calder Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 48,000 units and sold 45,000 units. The company's only product is sold for $258 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year. b. Assume the company uses super-variable costing. Prepare an income statement for the year. The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 48,000 units and sold 45,000 units. The company's only product is sold for $258 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year. b. Assume the company uses super-variable costing. Prepare an income statement for the year.

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a. Under super-variable costin...

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The unit product cost under super-variable costing is:


A) $81 per unit
B) $109 per unit
C) $227 per unit
D) $179 per unit

E) All of the above
F) B) and C)

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Rhoda Corporation manufactures and sells one product. In the company's first year of operations, the variable cost consisted solely of direct materials of $87 per unit. The annual fixed costs were $912,000 of direct labor cost, $2,128,000 of fixed manufacturing overhead expense, and $1,320,000 of fixed selling and administrative expense. The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 38,000 units and sold 33,000 units. The company's only product is sold for $240 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year. b. Assume the company uses super-variable costing. Prepare an income statement for the year.

Correct Answer

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a. Under super-variable costin...

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All differences between super-variable costing and absorption costing are explained by:


A) the accounting for direct materials and manufacturing overhead costs.
B) the accounting for direct labor and direct materials.
C) the accounting for direct labor and manufacturing overhead costs.
D) the accounting for manufacturing overhead costs.

E) None of the above
F) All of the above

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The net operating income for the year under super-variable costing is:


A) $802,000
B) $714,000
C) $880,000
D) $824,000

E) C) and D)
F) None of the above

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