4. Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $116
Units in beginning inventory 0
Units produced 9,000
Units sold 8,600
Units in ending inventory 400
Variable costs per unit:
Direct materials $19
Direct labor $61
Variable manufacturing overhead $7
Variable selling and administrative $11
Fixed costs:
Fixed manufacturing overhead $135,000
Fixed selling and administrative $8,900

What is the net operating income for the month under variable costing?

A. $10,900 B. $(23,900) C. $16,900 D. $6,000

1. A company produces a single product. Variable production costs are $14.0 per unit and variable selling and administrative expenses are $5.0 per unit. Fixed manufacturing overhead totals $56,000 and fixed selling and administration expenses total $60,000. Assuming a beginning inventory of zero, production of 6,000 units and sales of 4,600 units, the dollar value of the ending inventory under variable costing would be:

A. $19,600

B. $32,200

C. $26,600

D. $12,600

2. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price $137
Units in beginning inventory 0
Units produced 2,850
Units sold 2,700
Units in ending inventory 150
Variable costs per unit:
Direct materials $44
Direct labor $21
Variable manufacturing overhead $12
Variable selling and administrative $17
Fixed costs:
Fixed manufacturing overhead $91,200
Fixed selling and administrative expenses $10,800

The total gross margin for the month under absorption costing is:

A. $75,600B. $18,900C. $105,300D. $116,100

3. Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $161
Units in beginning inventory 50
Units produced 1,550
Units sold 1,580
Units in ending inventory 20
Variable costs per unit:
Direct materials $53
Direct labor $30
Variable manufacturing overhead $7
Variable selling and administrative $12
Fixed costs:
Fixed manufacturing overhead $15,500
Fixed selling and administrative $39,500

What is the total period cost for the month under the variable costing?

A. $55,000B. $15,500C. $58,460D. $73,960

6. Aaker Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $175
Units in beginning inventory 0
Units produced 7,250
Units sold 6,950
Units in ending inventory 300
Variable costs per unit:
Direct materials $31
Direct labor $61
Variable manufacturing overhead $25
Variable selling and administrative $25
Fixed costs:
Fixed manufacturing overhead $195,750
Fixed selling and administrative $29,700

What is the unit product cost for the month under variable costing?

A. $142 per units

B. $169 per units

C. $144 per units

D. $117 per units