just solve the given mcqs: 1) Wolanski Corporation has provided the following data for its most recent year of operations: Selling price per unit $ 48 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 11 Direct labor $ 5 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 110,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 71,000 Units in beginning inventory 0 Units produced during the year 11,000 Units sold during the year 8,000 Units in ending inventory 3,000 The unit product cost under variable costing is closest to: A $31.00 B $25.00 C $21.00 D $35.00 2) Kern Corporation produces a single product. Selected information concerning the operations of the company follow: Units in beginning inventory 0 Units produced 10,000 Units sold 9,000 Direct materials $ 40,000 Direct labor $ 20,000 Variable manufacturing overhead $ 12,000 Fixed manufacturing overhead $ 25,000 Variable selling and administrative expenses $ 4,500 Fixed selling and administrative expenses $ 30,000 Assume that direct labor is a variable cost. Which costing method, absorption or variable costing, would show a higher operating income for the year and by what amount? A Variable costing net operating income would be higher than absorption costing net operating income by $2,500. B Absorption costing net operating income would be higher than variable costing net operating income by $2,500. C Variable costing net operating income would be higher than absorption costing net operating income by $5,500. D Absorption costing net operating income would be higher than variable costing net operating income by $5,500.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 25E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...

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just solve the given mcqs:

1) Wolanski Corporation has provided the following data for its most recent year of operations:


Selling price per unit	$	48
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials	$	11
Direct labor	$	5
Variable manufacturing overhead	$	5
Fixed manufacturing overhead per year	$	110,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold	$	4
Fixed selling and administrative expense per year	$	71,000


Units in beginning inventory		0
Units produced during the year		11,000
Units sold during the year		8,000
Units in ending inventory		3,000

The unit product cost under variable costing is closest to:

	A	$31.00
	B	$25.00
	C	$21.00
	D	$35.00

2) Kern Corporation produces a single product. Selected information concerning the operations of the company follow:


Units in beginning inventory	0
Units produced	10,000
Units sold	9,000


Direct materials	$	40,000
Direct labor	$	20,000
Variable manufacturing overhead	$	12,000
Fixed manufacturing overhead	$	25,000
Variable selling and administrative expenses	$	4,500
Fixed selling and administrative expenses	$	30,000

Assume that direct labor is a variable cost.

Which costing method, absorption or variable costing, would show a higher operating income for the year and by what amount?

	A	Variable costing net operating income would be higher than absorption costing net operating income by $2,500.
	B	Absorption costing net operating income would be higher than variable costing net operating income by $2,500.
	C	Variable costing net operating income would be higher than absorption costing net operating income by $5,500.
	D	Absorption costing net operating income would be higher than variable costing net operating income by $5,500.

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