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1.A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Units in beginning inventory 0
Units produced 4,900
Units sold 4,800
Units in ending inventory 100
Variable costs per unit:
Direct materials$59
Direct labor$61
Variable manufacturing overhead$24
Variable selling and administrative expense$22
Fixed costs: Fixed manufacturing overhead$102,900
Fixed selling and administrative expense$48,000
What is the variable costing unit product cost for the month?
2.Net operating income computed under variable costing would exceed net operating income computed using absorption costing if:
Multiple Choice
3.A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price$133
Units in beginning inventory 0
Units produced 7,000
Units sold 6,800
Units in ending inventory 200
Variable costs per unit:
Direct materials$41
Direct labor$57
Variable manufacturing overhead$5
Variable selling and administrative expense$4
Fixed costs: Fixed manufacturing overhead$133,000
Fixed selling and administrative expense$34,000
What is the total period cost for the month under absorption costing?
4.A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price$131
Units in beginning inventory 0
Units produced 2,940
Units sold 2,740
Units in ending inventory 200
Variable costs per unit: Direct materials$44
Direct labor$19
Variable manufacturing overhead$13
Variable selling and administrative expense$12
Fixed costs: Fixed manufacturing overhead$85,260
Fixed selling and administrative expense$16,440
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