Question 1

Under variable costing, fixed manufacturing overhead is:

Accepted Answer

A)   expensed immediately when incurred.
B)   never expensed.
C)   applied directly to Finished-Goods Inventory.
D)   applied directly to Work-in-Process Inventory.
E)   treated in the same manner as variable manufacturing overhead.F) B) and E)
G) B) and D)

Question 2

All of the following are inventoried under absorption costing except:

Accepted Answer

A)   direct labor.
B)   raw materials used in production.
C)   utilities cost consumed in manufacturing.
D)   sales commissions.
E)   machine lubricant used in production.F) D) and E)
G) A) and B)

Question 3

Which of the following conditions would cause absorption-costing income to be higher than variable-costing income?

Accepted Answer

A)   Units sold exceeded units produced.
B)   Units sold equaled units produced.
C)   Units sold were less than units produced.
D)   Sales prices decreased.
E)   Selling expenses increased.F) C) and E)
G) A) and D)

Question 4

Carter reported $106,000 of income for the year by using variable costing. The company had no beginning inventory, planned and actual production of 50,000 units, and sales of 47,000 units. Standard variable manufacturing costs were $15 per unit, and total budgeted fixed manufacturing overhead was $150,000. If there were no variances, income under absorption costing would be:

Accepted Answer

A)   $52,000.
B)   $97,000.
C)   $106,000.
D)   $115,000.
E)   $160,000.F) C) and D)
G) A) and B)

Exam 8: Variable Costing and the Costs of Quality and Sustainability

All of the following are inventoried under absorption costing except:

Correct Answer
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Under variable costing, fixed manufacturing overhead is:

Correct Answer
verified

Which of the following conditions would cause absorption-costing income to be higher than variable-costing income?

Correct Answer
verified

Correct Answer
verified

Exam 8: Variable Costing and the Costs of Quality and Sustainability

All of the following are inventoried under absorption costing except:

Correct AnswerverifiedShow Answer

Under variable costing, fixed manufacturing overhead is:

Correct AnswerverifiedShow Answer

Which of the following conditions would cause absorption-costing income to be higher than variable-costing income?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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