accounnting 414740

Quiz Chapter 6 1. In responsibility accounting, each segment in an organization should be charged with the costs for which it is responsible and over which it has control plus its share of common organizational costs. A) True B) False 2. Only those costs that would disappear over time if a segment were eliminated should be considered traceable costs of the segment. A) True B) False 3. Cockriel 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) $42 B) $43 C) $37 D) $48 4. Fixed manufacturing overhead is included in product costs under: A) Option A B) Option B C) Option C D) Option D 5. Tennison Corporation has two major business segments Consumer and Commercial. Data for the segment and for the company for May appear below: In addition, common fixed expenses totaled $371,000 and were allocated as follows: $186,000 to the Consumer business segment and $185,000 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) $769,000 B) $104,000 C) $475,000 D) $267,000 6. Whitney, Inc., produces a single product. The following data pertain to one month’s operations: The carrying value on the balance sheet of the ending finished goods inventory under variable costing would be: A) $16,000 B) $10,000 C) $19,000 D) $12,000 7. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the variable costing unit product cost for the month? A) $103 B) $99 C) $94 D) $90 8. Tsuchiya Corporation manufactures a variety of products. Last year, the company’s variable costing net operating income was $57,500. Fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $35,400. What was the absorption costing net operating income last year? A) $22,100 B) $35,400 C) $57,500 D) $92,900 9. The following cost formula relates to last year’s operations at Lemine Manufacturing Corporation: Y = $84,000 + $60.00X In the formula above, 75% of the fixed cost and 90% of the variable cost are manufacturing costs. Y is the total cost and X is the number of units produced and sold. If Lemine produces and sells 7,000 units, what is the unit product cost under each of the following methods? A) Option A B) Option B C) Option C D) Option D 10. Byron Company, which has only one product, has provided the following data concerning its most recent month of operations: What is the unit product cost for the month under variable costing? A) $86 B) $77 C) $83 D) $92