Question

13. Timmer Corporation just started business in January. There were no beginning inventories. During the year, it manufactured 11,600 units of product, and sold 8,500 units. The selling price of each unit was $28. Variable manufacturing costs were $4 per unit, and variable selling and administrative costs were $3 per unit. Fixed manufacturing costs were $34,800, and fixed selling and administrative costs were $8,700. What would Timmer's net income be for the year using absorption costing? a. $115,440 b. $178,500 c. $153,000 d. $144,300

20.

The manufacturing cost of Calico Industries for three months of the year are provided below:

	Total Cost	Production (units)
April	$112,700	281,100
May	83,300	167,400
June	109,700	234,900

Using the high-low method, the variable cost per unit and the total fixed costs are

a.$0.26 per unit and $39,614

b.$2.60 per unit and $3,961

c.$4.68 per unit and $3,961

d.$0.47 per unit and $19,807

27.

Assume that Corn Co. sold 7,900 units of Product A and 2,100 units of Product B during the past year. The unit contribution margins for Products A and B are $25 and $55, respectively. Corn has fixed costs of $301,000. The break-even point in units is

a.7,693 units

b.11,540 units

c.9,617 units

d.14,425 units

Answer 1

Answers :  

1) D) $144,300

2) A) 0.26 Per unit and $39,614

3) C) 9,617 Units