Chapter 06 Variable Costing and Segment Reporting: Tools for Management

60. 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

61. Stephen Company produces a single product. Last year, the company had 20,000 units in its ending inventory. During the year, Stephen's variable production costs were $12 per unit. The fixed manufacturing overhead cost was $8 per unit in the beginning inventory. The company's net operating income for the year was $9,600 higher under variable costing than it was under absorption costing. The company uses a last-in-first-out (LIFO) inventory flow assumption. Given these facts, the number of units of product in the beginning inventory last year must have been:
A. 21,200
B. 19,200
C. 18,800
D. 19,520

62. Hansen Company produces a single product. During the last year, Hansen had net operating income under absorption costing that was $5,500 lower than its income under variable costing. The company sold 9,000 units during the year, and its variable costs were $10 per unit, of which $6 was variable selling expense. If fixed production cost is $5 per unit under absorption costing every year, then how many units did the company produce during the year?
A. 7,625 units
B. 8,450 units
C. 10,100 units
D. 7,900 units

63. Hatch Company has two divisions, O and E. During the year just ended, Division O had a segment margin of $9,000 and variable expenses equal to 70% of sales. Traceable fixed expenses for Division E were $19,000. Hatch Company as a whole had a contribution margin ratio of 40%, a segment margin of $25,000, and sales of $200,000. Given this data, the sales for Division E for last year were:
A. $50,000
B. $150,000
C. $87,500
D. $116,667

64. During April, Division D of Carney Company had a segment margin ratio of 15%, a variable expense ratio of 60% of sales, and traceable fixed expenses of $15,000. Division D's sales were closest to:
A. $100,000
B. $60,000
C. $33,333
D. $22,500

65. Colasuonno Corporation has two divisions: the West Division and the East Division. The corporation's net operating income is $88,800. The West Division's divisional segment margin is $39,500 and the East Division's divisional segment margin is $166,900. What is the amount of the common fixed expense not traceable to the individual divisions?
A. $255,700
B. $206,400
C. $117,600
D. $128,300

66. Gore Corporation has two divisions: the Business Products Division and the Export Products Division. The Business Products Division's divisional segment margin is $55,700 and the Export Products Division's divisional segment margin is $70,600. The total amount of common fixed expenses not traceable to the individual divisions is $107,400. What is the company's net operating income?
A. $233,700
B. $(126,300)
C. $126,300
D. $18,900

67. More Company has two divisions, L and M. During July, the contribution margin in Division L was $60,000. The contribution margin ratio in Division M was 40% and its sales were $250,000. Division M's segment margin was $60,000. The common fixed expenses were $50,000 and the company net operating income was $20,000. The segment margin for Division L was:
A. $0
B. $10,000
C. $50,000
D. $60,000

68. Stephen Company has the following data for its three stores last year:



Given the above data, the total company sales were:
A. $1,250,000
B. $1,375,000
C. $1,450,000
D. $800,000

69. Johnson Company operates two plants, Plant A and Plant B. Last year, Johnson Company reported a contribution margin of $40,000 for Plant A. Plant B had sales of $200,000 and a contribution margin ratio of 40%. Net operating income for the company was $27,000 and traceable fixed expenses for the two stores totaled $50,000. Johnson Company's common fixed expenses were:
A. $43,000
B. $50,000
C. $93,000
D. $120,000