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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 company is considering using either super-variable costing or an absorption costing system that assigns $11 of direct labor cost and $62 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) Super-variable costing net operating income exceeds absorption costing net operating income by $146,000. B) Absorption costing net operating income exceeds super-variable costing net operating income by $124,000. C) Super-variable costing net operating income exceeds absorption costing net operating income by $124,000. D) Absorption costing net operating income exceeds super-variable costing net operating income by $146,000. 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 company is considering using either super-variable costing or an absorption costing system that assigns $11 of direct labor cost and $62 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) Super-variable costing net operating income exceeds absorption costing net operating income by $146,000.
B) Absorption costing net operating income exceeds super-variable costing net operating income by $124,000.
C) Super-variable costing net operating income exceeds absorption costing net operating income by $124,000.
D) Absorption costing net operating income exceeds super-variable costing net operating income by $146,000.

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

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Valcarcel Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: Valcarcel 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 31,000 units and sold 25,000 units.The company's only product is sold for $233 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 $13 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.Prepare a reconciliation that explains the difference between the super-variable costing and variable 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 31,000 units and sold 25,000 units.The company's only product is sold for $233 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 $13 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.Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes.

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a.Under super-variable costing,the unit ...

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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. -The net operating income for the year under super-variable costing is: A) $(256,000) B) $(830,000) C) $(102,000) D) $374,000 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. -The net operating income for the year under super-variable costing is:


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

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

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Guillaume Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: Guillaume 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 41,000 units.The company's only product is sold for $260 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 $28 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. 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 41,000 units.The company's only product is sold for $260 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 $28 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.

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a.Under super-variable costing...

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Schubert Corporation manufactures and sells one product.In the company's first year of operations,the variable cost consisted solely of direct materials of $86 per unit.The annual fixed costs were $510,000 of direct labor cost,$2,210,000 of fixed manufacturing overhead expense,and $1,209,000 of fixed selling and administrative expense.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 $232 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 $15 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.

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a.Under super-variable costing...

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(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. -Assume that the company uses a variable costing system that assigns $14 of direct labor cost to each unit that is produced.The net operating income under this costing system is: A) $282,000 B) $912,000 C) $1,248,000 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. -Assume that the company uses a variable costing system that assigns $14 of direct labor cost to each unit that is produced.The net operating income under this costing system is:


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

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

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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. -The company is considering using either super-variable costing or an absorption costing system that assigns $10 of direct labor cost and $67 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) Super-variable costing net operating income exceeds absorption costing net operating income by $1,000. B) Super-variable costing net operating income exceeds absorption costing net operating income by $77,000. C) Absorption costing net operating income exceeds super-variable costing net operating income by $77,000. D) Absorption costing net operating income exceeds super-variable costing net operating income by $1,000. 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 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit. -The company is considering using either super-variable costing or an absorption costing system that assigns $10 of direct labor cost and $67 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) Super-variable costing net operating income exceeds absorption costing net operating income by $1,000.
B) Super-variable costing net operating income exceeds absorption costing net operating income by $77,000.
C) Absorption costing net operating income exceeds super-variable costing net operating income by $77,000.
D) Absorption costing net operating income exceeds super-variable costing net operating income by $1,000.

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

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(Appendix 6A) Labadie Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Labadie 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 22,000 units. The company's only product is sold for $251 per unit. -The company is considering using either super-variable costing or a variable costing system that assigns $23 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) Super-variable costing net operating income exceeds variable costing net operating income by $69,000. B) Variable costing net operating income exceeds super-variable costing net operating income by $69,000. C) Super-variable costing net operating income exceeds variable costing net operating income by $192,000. D) Variable costing net operating income exceeds super-variable costing net operating income by $192,000. 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 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit. -The company is considering using either super-variable costing or a variable costing system that assigns $23 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) Super-variable costing net operating income exceeds variable costing net operating income by $69,000.
B) Variable costing net operating income exceeds super-variable costing net operating income by $69,000.
C) Super-variable costing net operating income exceeds variable costing net operating income by $192,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $192,000.

E) C) and D)
F) A) 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. -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 net operating income under this costing system is: A) $315,000 B) $1,035,000 C) $735,000 D) $691,000 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 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 net operating income under this costing system is:


A) $315,000
B) $1,035,000
C) $735,000
D) $691,000

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

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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 net operating income under this costing system is: A) $1,035,000 B) $691,000 C) $315,000 D) $735,000 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 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 net operating income under this costing system is:


A) $1,035,000
B) $691,000
C) $315,000
D) $735,000

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

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Souffront Corporation manufactures and sells one product.In the company's first year of operations,the variable cost consisted solely of direct materials of $97 per unit.The annual fixed costs were $1,416,000 of direct labor cost,$3,776,000 of fixed manufacturing overhead expense,and $1,650,000 of fixed selling and administrative expense.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 59,000 units and sold 55,000 units.The company's only product is sold for $251 per unit. The net operating income for the year under super-variable costing is:


A) $1,628,000
B) $1,724,000
C) $1,240,000
D) $1,980,000

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

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Nurre Corporation manufactures and sells one product.In the company's first year of operations,the variable cost consisted solely of direct materials of $88 per unit.The annual fixed costs were $729,000 of direct labor cost,$1,917,000 of fixed manufacturing overhead expense,and $814,000 of fixed selling and administrative expense.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 27,000 units and sold 22,000 units.The company's only product is sold for $247 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 $27 of direct labor cost and $71 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) 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. -The net operating income for the year under super-variable costing is: A) $1,400,000 B) $1,110,000 C) $1,005,000 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. -The net operating income for the year under super-variable costing is:


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

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

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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. -The company is considering using either super-variable costing or a variable costing system that assigns $10 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 $10,000. B) Super-variable costing net operating income exceeds variable costing net operating income by $10,000. C) Super-variable costing net operating income exceeds variable costing net operating income by $67,000. D) Variable costing net operating income exceeds super-variable costing net operating income by $67,000. 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 32,000 units and sold 31,000 units. The company's only product is sold for $238 per unit. -The company is considering using either super-variable costing or a variable costing system that assigns $10 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 $10,000.
B) Super-variable costing net operating income exceeds variable costing net operating income by $10,000.
C) Super-variable costing net operating income exceeds variable costing net operating income by $67,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $67,000.

E) All of the above
F) A) and B)

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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. -The unit product cost under super-variable costing is: A) $214 per unit B) $93 per unit C) $170 per unit D) $103 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. -The unit product cost under super-variable costing is:


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

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

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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 net operating income for the year under super-variable costing is: A) $1,593,000 B) $1,023,000 C) $1,978,000 D) $1,483,000 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 net operating income for the year under super-variable costing is:


A) $1,593,000
B) $1,023,000
C) $1,978,000
D) $1,483,000

E) All of the above
F) A) and B)

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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 a variable costing system that assigns $10 of direct labor cost to each unit that is produced.The unit product cost under this costing system is: A) $170 per unit B) $214 per unit C) $93 per unit D) $103 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 a variable costing system that assigns $10 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:


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

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

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(Appendix 6A) Labadie Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: (Appendix 6A) Labadie 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 22,000 units. The company's only product is sold for $251 per unit. -Assume that the company uses a variable costing system that assigns $23 of direct labor cost to each unit that is produced.The unit product cost under this costing system is: A) $181 per unit B) $117 per unit C) $94 per unit D) $215 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 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit. -Assume that the company uses a variable costing system that assigns $23 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:


A) $181 per unit
B) $117 per unit
C) $94 per unit
D) $215 per unit

E) A) and B)
F) All of the above

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Grandin Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: Grandin 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 44,000 units and sold 41,000 units.The company's only product is sold for $242 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $24 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) Super-variable costing net operating income exceeds variable costing net operating income by $72,000. B) Variable costing net operating income exceeds super-variable costing net operating income by $156,000. C) Super-variable costing net operating income exceeds variable costing net operating income by $156,000. D) Variable costing net operating income exceeds super-variable costing net operating income by $72,000. 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 44,000 units and sold 41,000 units.The company's only product is sold for $242 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $24 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) Super-variable costing net operating income exceeds variable costing net operating income by $72,000.
B) Variable costing net operating income exceeds super-variable costing net operating income by $156,000.
C) Super-variable costing net operating income exceeds variable costing net operating income by $156,000.
D) Variable costing net operating income exceeds super-variable costing net operating income by $72,000.

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 an absorption costing system that assigns $21 of direct labor cost and $58 of fixed manufacturing overhead to each unit that is produced.The net operating income under this costing system is: A) $580,000 B) $1,400,000 C) $1,005,000 D) $1,110,000 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 an absorption costing system that assigns $21 of direct labor cost and $58 of fixed manufacturing overhead to each unit that is produced.The net operating income under this costing system is:


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

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

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