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Clemmens Corporation has two major business segments: Consumer and Commercial.Data for the segments and for the company for August appear below: Clemmens Corporation has two major business segments: Consumer and Commercial.Data for the segments and for the company for August appear below: In addition,common fixed expenses totaled $265,000 and were allocated as follows: $135,000 to the Consumer business segment and $130,000 to the Commercial business segment. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is: A) $88,000 B) $353,000 C) $476,000 D) -$177,000 In addition,common fixed expenses totaled $265,000 and were allocated as follows: $135,000 to the Consumer business segment and $130,000 to the Commercial business segment. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:


A) $88,000
B) $353,000
C) $476,000
D) -$177,000

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

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Rollison Corporation has two divisions: Retail Division and Wholesale Division.The following data are for the most recent operating period: Rollison Corporation has two divisions: Retail Division and Wholesale Division.The following data are for the most recent operating period: The common fixed expenses of the company are $76,300. The Wholesale Division's break-even sales in dollars is closest to: A) $164,286 B) $217,686 C) $273,286 D) $469,884 The common fixed expenses of the company are $76,300. The Wholesale Division's break-even sales in dollars is closest to:


A) $164,286
B) $217,686
C) $273,286
D) $469,884

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

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Chown Corporation,which has only one product,has provided the following data concerning its most recent month of operations: Chown Corporation,which has only one product,has provided the following data concerning its most recent month of operations: The total gross margin for the month under the absorption costing approach is: A) $196,800 B) $179,400 C) $390,000 D) $7,800 The total gross margin for the month under the absorption costing approach is:


A) $196,800
B) $179,400
C) $390,000
D) $7,800

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

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Aaker Corporation,which has only one product,has provided the following data concerning its most recent month of operations: Aaker Corporation,which has only one product,has provided the following data concerning its most recent month of operations: The total contribution margin for the month under variable costing is: A) $72,000 B) $27,900 C) $234,000 D) $198,000 The total contribution margin for the month under variable costing is:


A) $72,000
B) $27,900
C) $234,000
D) $198,000

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

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George Corporation has no beginning inventory and manufactures a single product.If the number of units produced exceeds the number of units sold,then net operating income under the absorption method for the year will:


A) be equal to the net operating income under variable costing.
B) be greater than the net operating income under variable costing.
C) be equal to the net operating income under variable costing plus total fixed manufacturing costs.
D) be equal to the net operating income under variable costing less total fixed manufacturing costs.

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

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Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period: Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period: The Gold Division's break-even sales is closest to: A) $276,812 B) $301,391 C) $383,825 D) $201,449 The Gold Division's break-even sales is closest to:


A) $276,812
B) $301,391
C) $383,825
D) $201,449

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

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Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period: Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period: The company's overall break-even sales is closest to: A) $104,825 B) $383,825 C) $279,000 D) $299,645 The company's overall break-even sales is closest to:


A) $104,825
B) $383,825
C) $279,000
D) $299,645

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

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Nantua Corporation has two divisions,Southern and Northern.The following information was taken from last year's income statement segmented by division: Nantua Corporation has two divisions,Southern and Northern.The following information was taken from last year's income statement segmented by division: Net operating income last year for Nantua Corporation was $400,000. In last year's income statement segmented by division,what were Nantua's total common fixed expenses? A) $450,000 B) $800,000 C) $1,250,000 D) $1,300,000 Net operating income last year for Nantua Corporation was $400,000. In last year's income statement segmented by division,what were Nantua's total common fixed expenses?


A) $450,000
B) $800,000
C) $1,250,000
D) $1,300,000

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

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Ronan Corporation produces a single product and has the following cost structure: Ronan Corporation produces a single product and has the following cost structure: Required: Compute the unit product cost under variable costing.Show your work! Required: Compute the unit product cost under variable costing.Show your work!

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O'Neill,Incorporated's segmented income statement for the most recent month is given below. O'Neill,Incorporated's segmented income statement for the most recent month is given below. For each of the following questions,refer back to the above original data. The marketing department believes that a promotional campaign at Store A costing $6,000 will increase sales by $15,000.If its plan is adopted,overall company net operating income should: A) decrease by $1,800 B) decrease by $10,200 C) increase by $10,200 D) increase by $1,800 For each of the following questions,refer back to the above original data. The marketing department believes that a promotional campaign at Store A costing $6,000 will increase sales by $15,000.If its plan is adopted,overall company net operating income should:


A) decrease by $1,800
B) decrease by $10,200
C) increase by $10,200
D) increase by $1,800

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

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Cutterski Corporation manufactures a propeller.Shown below is Cutterski's cost structure: Cutterski Corporation manufactures a propeller.Shown below is Cutterski's cost structure: In its first year of operations,Cutterski produced 60,000 propellers but only sold 54,000. What would Cutterski report as its cost of goods sold under absorption costing? A) $6,156,000 B) $6,885,000 C) $6,966,000 D) $8,208,000 In its first year of operations,Cutterski produced 60,000 propellers but only sold 54,000. What would Cutterski report as its cost of goods sold under absorption costing?


A) $6,156,000
B) $6,885,000
C) $6,966,000
D) $8,208,000

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

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Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period: Criblez Corporation has two divisions: Blue Division and Gold Division.The following report is for the most recent operating period: The Blue Division's break-even sales is closest to: A) $383,825 B) $218,286 C) $77,551 D) $112,163 The Blue Division's break-even sales is closest to:


A) $383,825
B) $218,286
C) $77,551
D) $112,163

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

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Keefe Corporation has two divisions: Western Division and Eastern Division.The following report is for the most recent operating period: Keefe Corporation has two divisions: Western Division and Eastern Division.The following report is for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The Eastern Division's break-even sales is closest to: A) $104,872 B) $368,309 C) $75,641 D) $172,103 The common fixed expenses have been allocated to the divisions on the basis of sales. The Eastern Division's break-even sales is closest to:


A) $104,872
B) $368,309
C) $75,641
D) $172,103

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

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Sharron Inc. ,which produces a single product,has provided the following data for its most recent month of operations: Sharron Inc. ,which produces a single product,has provided the following data for its most recent month of operations: There were no beginning or ending inventories.The variable costing unit product cost was: A) $111 per unit B) $190 per unit C) $117 per unit D) $110 per unit There were no beginning or ending inventories.The variable costing unit product cost was:


A) $111 per unit
B) $190 per unit
C) $117 per unit
D) $110 per unit

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

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The following data were provided by Rider,Inc,which produces a single product: The following data were provided by Rider,Inc,which produces a single product: Under variable costing,the unit product cost is: A) $14 per unit B) $13 per unit C) $10 per unit D) $16 per unit Under variable costing,the unit product cost is:


A) $14 per unit
B) $13 per unit
C) $10 per unit
D) $16 per unit

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

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Keefe Corporation has two divisions: Western Division and Eastern Division.The following report is for the most recent operating period: Keefe Corporation has two divisions: Western Division and Eastern Division.The following report is for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. What is the company's overall net operating income if it operates at the break-even points for its two divisions? A) $17,160 B) ($75,240) C) ($228,240) D) $0 The common fixed expenses have been allocated to the divisions on the basis of sales. What is the company's overall net operating income if it operates at the break-even points for its two divisions?


A) $17,160
B) ($75,240)
C) ($228,240)
D) $0

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

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Italia Espresso Machina Inc.produces a single product.Data concerning the company's operations last year appear below: Italia Espresso Machina Inc.produces a single product.Data concerning the company's operations last year appear below: Required: a.Compute the unit product cost under both absorption and variable costing. b.Prepare an income statement for the year using absorption costing. c.Prepare a contribution format income statement for the year using variable costing. d.Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year. Required: a.Compute the unit product cost under both absorption and variable costing. b.Prepare an income statement for the year using absorption costing. c.Prepare a contribution format income statement for the year using variable costing. d.Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.

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a. 11eaa3fe_32d7_b71a_908b_a3b18835715a_TB2461_00 b.Absorption costing income statement 11eaa3fe_32d7_de2b_908b_c7de5b1b53da_TB2461_00 c.Contribution format income statement 11eaa3fe_32d7_de2c_908b_d7664fce9308_TB2461_00 d.Reconciliation Units in ending inventory = Units in beginning inventory + Units produced - Units sold = 0 units + 2,000 units - 1,900 units = 100 units Manufacturing overhead deferred in (released from)inventory = Fixed manufacturing overhead in ending inventory - Fixed manufacturing overhead in beginning inventory = ($20 per unit × 100 units)- $0 = $2,000 11eaa3fe_32d8_053d_908b_0388a2c910e8_TB2461_00

Under absorption costing,product costs include: Under absorption costing,product costs include: A) Option A B) Option B C) Option C D) Option D


A) Option A
B) Option B
C) Option C
D) Option D

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

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Pevy Corporation has two divisions: Southern Division and Northern Division.The following data are for the most recent operating period: Pevy Corporation has two divisions: Southern Division and Northern Division.The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. The Northern Division's break-even sales is closest to: A) $104,400 B) $131,900 C) $86,250 D) $286,163 The common fixed expenses have been allocated to the divisions on the basis of sales. The Northern Division's break-even sales is closest to:


A) $104,400
B) $131,900
C) $86,250
D) $286,163

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

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C

Brummitt Corporation has two divisions: the BAJ Division and the CBB Division.The corporation's net operating income is $10,700.The BAJ Division's divisional segment margin is $76,100 and the CBB Division's divisional segment margin is $42,300.What is the amount of the common fixed expense not traceable to the individual divisions?


A) $86,800
B) $107,700
C) $53,000
D) $118,400

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

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B

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