^a101.Which cost is charged to the product under variable costing?

a.Variable manufacturing overhead

b.Fixed manufacturing overhead

c.Variable administrative expenses

d.Fixed administrative expenses

^a102.Variable costing

a.is used for external reporting purposes.

b.is required under GAAP.

c.treats fixed manufacturing overhead as a period cost.

d.is also known as full costing.

Use the following information for questions 103107.

Sprinkle Co. sells its product for $60 per unit. During 2012, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $9, and variable overhead $3. Fixed costs are: $720,000 manufacturing overhead, and $90,000 selling and administrative expenses.

^a103.The per unit manufacturing cost under absorption costing is

a.$24.

b.$27.

c.$39.

d.$41.

^a104.The per unit manufacturing cost under variable costing is

a.$24.

b.$27.

c.$39.

d.$41.

^a105.Cost of goods sold under absorption costing is

a.$1,350,000.

b.$1,620,000.

c.$1,950,000.

d.$1,560,000.

^a106.Ending inventory under variable costing is

a.$270,000.

b.$390,000.

c.$600,000.

d.$1,350,000.

^a107.Under absorption costing, what amount of fixed overhead is deferred to a future period?

a.$30,000

b.$120,000

c.$150,000

d.$720,000

^a108.Net income under absorption costing is gross profit less

a.cost of goods sold.

b.fixed manufacturing overhead and fixed selling and administrative expenses.

c.fixed manufacturing overhead and variable manufacturing overhead.

d.variable selling and administrative expenses and fixed selling and administrative expenses.

^a109.Net income under variable costing is contribution margin less

a.cost of goods sold.

b.fixed manufacturing overhead and fixed selling and administrative expenses.

c.fixed manufacturing overhead and variable manufacturing overhead.

d.variable selling and administrative expenses and fixed selling and administrative expenses.

^a110.The manufacturing cost per unit for absorption costing is

a.usually, but not always, higher than manufacturing cost per unit for variable costing.

b.usually, but not always, lower than manufacturing cost per unit for variable costing.

c.always higher than manufacturing cost per unit for variable costing.

d.always lower than manufacturing cost per unit for variable costing.