Chapter 6 Margin Expense Exercises

1.

Koen Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $44,300 for Division A. Division B had a contribution margin ratio of 40% and its sales were $232,000. Net operating income for the company was $32,600 and traceable fixed expenses were $55,800. Koen Corporation's common fixed expenses were:

$137,100

$104,500

$55,800

$48,700

2.

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

Units in beginning inventory	0
Units produced	4,500
Units sold	4,400
Units in ending inventory	100

Variable costs per unit:

Direct materials	$	51
Direct labor	$	53
Variable manufacturing overhead	$	16
Variable selling and administrative	$	14

Fixed costs:

Fixed manufacturing overhead	$	94,500
Fixed selling and administrative	$	44,000

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

$155 per unit

$134 per unit

$131 per unit

$120 per unit

3.

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

Selling price	$163
Units in beginning inventory	100
Units produced	10,300
Units sold	9,900
Units in ending inventory	500
Variable cost per unit:
Direct materials	$48
Direct labor	$45
Variable manufacturing overhead	$15
Variable selling and administrative	$10
Fixed costs:
Fixed manufacturing overhead	$298,700
Fixed selling and administrative	$128,700

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

$298,700

$427,400

$227,700

$526,400

4.

Olds Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced	7,800
Variable costs per unit:
Direct materials	$91
Direct labor	$90
Variable manufacturing overhead	$9
Variable selling and administrative expense	$13
Fixed costs:
Fixed manufacturing overhead	$304,200
Fixed selling and administrative expense	$600,600

There were no beginning or ending inventories. The absorption costing unit product cost was:

$229 per unit

$319 per unit

$181 per unit

$190 per unit

5.

Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $11,000. The BAJ Division's divisional segment margin is $77,600 and the CBB Division's divisional segment margin is $43,500. What is the amount of the common fixed expense not traceable to the individual divisions?

	$121,100
	$54,500
	$88,600
	$110,100 Please show work thank you. I'm having trouble understanding how to do this properly.