1. Under variable costing, fixed manufacturing overhead cost is treated as a product cost. A) True B) False 2. 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 3. Vanstee Corporation manufactures a variety of products. Variable costing net operating income last year was $60,000 and this year was $67,000. Last year, $37,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing. This year, $8,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. What was the absorption costing net operating income last year? A) $60,000 B) $23,000 C) $97,000 D) $89,000 4. Vanstee Corporation manufactures a variety of products. Variable costing net operating income last year was $60,000 and this year was $67,000. Last year, $37,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing. This year, $8,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. What was the absorption costing net operating income this year? A) $38,000 B) $96,000 C) $75,000 D) $59,000 5. Under variable costing, costs that are treated as period costs include: A) only fixed manufacturing costs. B) both variable and fixed manufacturing costs. C) all fixed costs. D) only fixed selling and administrative costs