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Woodall Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: Woodall 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 expenses.During its first year of operations,the company produced 46,000 units and sold 44,000 units.The company's only product is sold for $235 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 $14 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.Assume that the company uses an absorption costing system that assigns $14 of direct labor cost and $56 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. d.Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes. e.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 expenses.During its first year of operations,the company produced 46,000 units and sold 44,000 units.The company's only product is sold for $235 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 $14 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.Assume that the company uses an absorption costing system that assigns $14 of direct labor cost and $56 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. d.Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes. e.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 unit ...

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(Appendix 6A) Dallavalle Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Dallavalle 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 expenses. 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 $238 per unit. -Assume that the company uses an absorption costing system that assigns $10 of direct labor cost and $67 of fixed manufacturing overhead to each unit that is produced.The unit product cost under this costing system is: A) $103 per unit B) $214 per unit C) $170 per unit D) $93 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. 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 $238 per unit. -Assume that the company uses an absorption costing system that assigns $10 of direct labor cost and $67 of fixed manufacturing overhead to each unit that is produced.The unit product cost under this costing system is:


A) $103 per unit
B) $214 per unit
C) $170 per unit
D) $93 per unit

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

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Michelman Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: Michelman 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 expenses.During its first year of operations,the company produced 34,000 units and sold 31,000 units.The company's only product is sold for $254 per unit. The company is considering using either super-variable costing or an absorption costing system that assigns $28 of direct labor cost and $75 of fixed manufacturing overhead to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year? A) Absorption costing net operating income exceeds super-variable costing net operating income by $309,000. B) Absorption costing net operating income exceeds super-variable costing net operating income by $225,000. C) Super-variable costing net operating income exceeds absorption costing net operating income by $309,000. D) Super-variable costing net operating income exceeds absorption costing net operating income by $225,000. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 34,000 units and sold 31,000 units.The company's only product is sold for $254 per unit. The company is considering using either super-variable costing or an absorption costing system that assigns $28 of direct labor cost and $75 of fixed manufacturing overhead to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?


A) Absorption costing net operating income exceeds super-variable costing net operating income by $309,000.
B) Absorption costing net operating income exceeds super-variable costing net operating income by $225,000.
C) Super-variable costing net operating income exceeds absorption costing net operating income by $309,000.
D) Super-variable costing net operating income exceeds absorption costing net operating income by $225,000.

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

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All differences between super-variable costing and variable costing net operating income are explained by the accounting for manufacturing overhead costs.

A) True
B) False

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Shelko Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: Shelko 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 expenses.During its first year of operations,the company produced 42,000 units and sold 37,000 units.The company's only product is sold for $272 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 $28 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 expenses.During its first year of operations,the company produced 42,000 units and sold 37,000 units.The company's only product is sold for $272 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 $28 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 unit ...

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(Appendix 6A) Marcelin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Marcelin 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 expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit. -The company is considering using either super-variable costing or a variable costing system that assigns $22 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) Variable costing net operating income exceeds super-variable costing net operating income by $110,000. B) Super-variable costing net operating income exceeds variable costing net operating income by $385,000. C) Super-variable costing net operating income exceeds variable costing net operating income by $110,000. D) Variable costing net operating income exceeds super-variable costing net operating income by $385,000. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit. -The company is considering using either super-variable costing or a variable costing system that assigns $22 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) Variable costing net operating income exceeds super-variable costing net operating income by $110,000.
B) Super-variable costing net operating income exceeds variable costing net operating income by $385,000.
C) Super-variable costing net operating income exceeds variable costing net operating income by $110,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $385,000.

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

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(Appendix 6A) Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Buckbee 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 expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit. -The unit product cost under super-variable costing is: A) $97 per unit B) $191 per unit C) $224 per unit D) $114 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit. -The unit product cost under super-variable costing is:


A) $97 per unit
B) $191 per unit
C) $224 per unit
D) $114 per unit

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

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(Appendix 6A) Marcelin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Marcelin 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 expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit. -The unit product cost under super-variable costing is: A) $191 per unit B) $233 per unit C) $114 per unit D) $92 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit. -The unit product cost under super-variable costing is:


A) $191 per unit
B) $233 per unit
C) $114 per unit
D) $92 per unit

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

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Super-variable costing is most appropriate where:


A) direct labor is a fixed cost.
B) it is easy to accurately separate the variable and fixed components of manufacturing overhead.
C) direct labor is a variable cost.
D) manufacturing overhead consists entirely of variable cost.

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

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(Appendix 6A) Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Tremble 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 expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit. -Assume that the company uses a variable costing system that assigns $11 of direct labor cost to each unit that is produced.The unit product cost under this costing system is: A) $105 per unit B) $180 per unit C) $94 per unit D) $210 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit. -Assume that the company uses a variable costing system that assigns $11 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:


A) $105 per unit
B) $180 per unit
C) $94 per unit
D) $210 per unit

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

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(Appendix 6A) Union Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Union 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 expenses. During its first year of operations, the company produced 24,000 units and sold 17,000 units. The company's only product is sold for $232 per unit. -Assume that the company uses an absorption costing system that assigns $22 of direct labor cost and $68 of fixed manufacturing overhead to each unit that is produced.The net operating income under this costing system is: A) $(102,000) B) $374,000 C) $(830,000) D) $(256,000) The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 24,000 units and sold 17,000 units. The company's only product is sold for $232 per unit. -Assume that the company uses an absorption costing system that assigns $22 of direct labor cost and $68 of fixed manufacturing overhead to each unit that is produced.The net operating income under this costing system is:


A) $(102,000)
B) $374,000
C) $(830,000)
D) $(256,000)

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

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Paparelli Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: Paparelli 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 expenses.During its first year of operations,the company produced 40,000 units and sold 33,000 units.The company's only product is sold for $240 per unit. The net operating income for the year under super-variable costing is: A) $308,000 B) $(252,000) C) $924,000 D) $448,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 40,000 units and sold 33,000 units.The company's only product is sold for $240 per unit. The net operating income for the year under super-variable costing is:


A) $308,000
B) $(252,000)
C) $924,000
D) $448,000

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

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A

Dattilio Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: Dattilio 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 expenses.During its first year of operations,the company produced 54,000 units and sold 49,000 units.The company's only product is sold for $238 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 expenses.During its first year of operations,the company produced 54,000 units and sold 49,000 units.The company's only product is sold for $238 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 costing,the unit product cost is just the direct materials cost of $80 per unit. 11ea7761_1850_c1ea_81a5_e336bb1fb40c_TB2580_00

(Appendix 6A) Stubenrauch Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Stubenrauch 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 expenses. During its first year of operations, the company produced 38,000 units and sold 32,000 units. The company's only product is sold for $240 per unit. -The net operating income for the year under super-variable costing is: A) $912,000 B) $1,248,000 C) $282,000 D) $828,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 38,000 units and sold 32,000 units. The company's only product is sold for $240 per unit. -The net operating income for the year under super-variable costing is:


A) $912,000
B) $1,248,000
C) $282,000
D) $828,000

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

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Sawicki Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: Sawicki 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 expenses.During its first year of operations,the company produced 25,000 units and sold 18,000 units.The company's only product is sold for $224 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 $10 of direct labor cost and $62 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. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 25,000 units and sold 18,000 units.The company's only product is sold for $224 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 $10 of direct labor cost and $62 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.

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a.Under super-variable costing...

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(Appendix 6A) Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Buckbee 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 expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit. -Assume that the company uses a variable costing system that assigns $17 of direct labor cost to each unit that is produced.The net operating income under this costing system is: A) $1,184,000 B) $229,000 C) $714,000 D) $799,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit. -Assume that the company uses a variable costing system that assigns $17 of direct labor cost to each unit that is produced.The net operating income under this costing system is:


A) $1,184,000
B) $229,000
C) $714,000
D) $799,000

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

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(Appendix 6A) Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Tremble 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 expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit. -The unit product cost under super-variable costing is: A) $180 per unit B) $105 per unit C) $94 per unit D) $210 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit. -The unit product cost under super-variable costing is:


A) $180 per unit
B) $105 per unit
C) $94 per unit
D) $210 per unit

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

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C

(Appendix 6A) Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Tremble 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 expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit. -Assume that the company uses an absorption costing system that assigns $11 of direct labor cost and $75 of fixed manufacturing overhead to each unit that is produced.The unit product cost under this costing system is: A) $94 per unit B) $180 per unit C) $105 per unit D) $210 per unit The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit. -Assume that the company uses an absorption costing system that assigns $11 of direct labor cost and $75 of fixed manufacturing overhead to each unit that is produced.The unit product cost under this costing system is:


A) $94 per unit
B) $180 per unit
C) $105 per unit
D) $210 per unit

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

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(Appendix 6A) Leheny Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Leheny 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 expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit. -Assume that the company uses a variable costing system that assigns $21 of direct labor cost to each unit that is produced.The net operating income under this costing system is: A) $1,400,000 B) $1,005,000 C) $1,110,000 D) $580,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit. -Assume that the company uses a variable costing system that assigns $21 of direct labor cost to each unit that is produced.The net operating income under this costing system is:


A) $1,400,000
B) $1,005,000
C) $1,110,000
D) $580,000

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

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(Appendix 6A) Letcher Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Letcher 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 expenses. During its first year of operations, the company produced 56,000 units and sold 54,000 units. The company's only product is sold for $227 per unit. -The net operating income for the year under super-variable costing is: A) $1,604,000 B) $1,404,000 C) $1,582,000 D) $1,728,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 56,000 units and sold 54,000 units. The company's only product is sold for $227 per unit. -The net operating income for the year under super-variable costing is:


A) $1,604,000
B) $1,404,000
C) $1,582,000
D) $1,728,000

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

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