(Solution) 15 MULTIPLE CHOICE AND TRUE FALSE QUESTIONS. ONLY NEED ANSWERS NO WORK 1. | Snapessays.com


(Solution) 15 MULTIPLE CHOICE AND TRUE FALSE QUESTIONS. ONLY NEED ANSWERS NO WORK 1.


15 MULTIPLE CHOICE AND TRUE FALSE QUESTIONS. ONLY NEED ANSWERS NO WORK  1. Under absorption costing, the more units added to ending Finished Goods Inventory, the less fixed manufacturing overhead is '"hidden" in ending Finished Goods Inventory at the end of the accounting period.True False 2. Absorption costing is more appropriate than variable costing for making plant production capacity decisions.True False 3. By separating costs by behavior, fixed and variable, a service company can calculate the contribution margin ratio by dividing the contribution margin by revenues.True False 4. Variable costing is more appropriate than absorption costing when the decision ________.involves reducing fixed costs that are controllable by the upper management does not involve analysis of contribution margin relates to production planning within the capacity limits in the short run does not involve analysis of profitability based on sales mix 5.Which of the following statements is true of absorption and variable costing methods?Absorption costing considers fixed manufacturing overhead to be period costs. Both costing methods consider selling and administrative costs to be period costs. Both costing methods consider fixed manufacturing overhead to be product costs. Variable costing considers variable selling and administrative costs to be product costs. 6. Which of the following is considered a period cost under variable costing but not under absorption costing?variable selling and administrative costs variable manufacturing costs fixed manufacturing overhead fixed selling and administrative costs 7. Which is the following is the most appropriate reason that sales mix decisions should be made using variable costing?To increase profits, businesses should emphasize the products with the highest contribution margin. All costs, including fixed costs, are controllable by upper management in the long run. Fixed costs do not affect the operating income in the long run. Sales mix decisions primarily focus on fixed costs. 8. Unit product cost calculations using absorption costing do not include ________.variable manufacturing overhead variable selling and administrative costs fixed manufacturing overhead direct materials 9. When all of the units produced are sold, the operating income is the same under both the absorption and variable costing methods. Assume no beginning and ending inventories. Which of the following gives the correct reason for the above statement?A portion of the fixed manufacturing overhead is still in the Finished Goods Inventory account. All selling and administrative expenses have been recorded as period costs. Fixed manufacturing costs have not been considered when calculating the operating incomes. All costs incurred have been recorded as expenses. 10.  Missan, Inc. reports the following information:Units produced 640 units Units sold 440 units Sales price $200 per unit Direct materials $29 per unit Direct labor $12 per unit Variable manufacturing overhead $18 per unit Fixed manufacturing overhead $18,500 per year Variable selling and administrative costs $4 per unit Fixed selling and administrative costs $13,500 per year There are no beginning inventories. What is the ending balance in Finished Goods Inventory using absorption costing? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)$11,800 $17,582 $5,781 $13,981 11. Crystal Pools, Inc. has provided the following information for the year.Units produced 14,000 units Sales price $400 per unit Direct materials $45 per unit Direct labor $20 per unit Variable manufacturing overhead $65 per unit Fixed manufacturing overhead $500,000 per year Variable selling and administration costs $85 per unit Fixed selling and administration costs $270,000 per year What is the unit product cost using absorption costing? (Round any intermediate calculations and your final answer to the nearest dollar.)$166 $130 $150 $65 12. Carbon, Inc. reports the following information for April:Alpha Beta Units sold 2,000 units 800 units Sales price per unit $350 $600 Variable manufacturing cost per unit 150 500 Sales commission per unit: Alpha: 8% of sales price 28 Beta: 8% of sales price 48 What is the contribution margin of Alpha? $400,000 $124,000 $644,000 $344,000 13. Dentofax, Inc. reports the following information for August:Sales Revenue $800,000 Variable Cost of Goods Sold 110,000 Fixed Cost of Goods Sold 65,000 Variable Selling and Administrative Costs 130,000 Fixed Selling and Administrative Costs 65,000 Calculate the operating income for August using absorption costing.$995,000 $240,000 $430,000 $370,000 14. E-trax, Inc. has provided the following financial information for the year:Finished Goods Inventory: Beginning balance, in units 610 Units produced 2,800 Units sold 2,900 Ending balance, in units 510 Production costs: Variable manufacturing costs per unit $50 Total fixed manufacturing costs $42,000 What is the unit product cost for the year using absorption costing? $65 $64 $82 $119

 


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This question was answered on: May 23, 2022

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