Deck 17: Super-Variable Costing

Question 1

(Appendix 5A)All differences between super-variable costing and absorption costing net operating income are explained by the accounting for direct materials costs.

Answer 1

False

Question 2

(Appendix 5A)Phoeuk Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 41,000 units and sold 40,000 units.The company's only product is sold for $231 per unit. Assume that the company uses a variable costing system that assigns $22 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:

A)$88 per unit
B)$110 per unit
C)$209 per unit
D)$166 per unit

Answer 2

B

Question 3

(Appendix 5A)Phoeuk Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 41,000 units and sold 40,000 units.The company's only product is sold for $231 per unit. Assume that the company uses a variable costing system that assigns $22 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

A)$714,000
B)$824,000
C)$802,000
D)$880,000

Answer 3

B

Question 4

(Appendix 5A)Super-variable costing is a costing method that treats direct labor and manufacturing overhead costs as period costs and includes only direct materials cost in unit product costs.

Question 5

(Appendix 5A)Phoeuk Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 41,000 units and sold 40,000 units.The company's only product is sold for $231 per unit. The unit product cost under super-variable costing is:

A)$88 per unit
B)$166 per unit
C)$110 per unit
D)$209 per unit

Question 6

(Appendix 5A)Under super-variable costing,which of the following is treated as a period cost?

A)Option A
B)Option B
C)Option C
D)Option D

Question 7

(Appendix 5A)Tisch Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 20,000 units and sold 13,000 units.The company's only product is sold for $242 per unit. The net operating income for the year under super-variable costing is:

A)($109,000)
B)$507,000
C)($676,000)
D)($11,000)

Question 8

(Appendix 5A)Wahler Corporation manufactures and sells one product.In the company's first year of operations,the variable cost consisted solely of direct materials of $85 per unit.The annual fixed costs were $640,000 of direct labor cost,$2,208,000 of fixed manufacturing overhead expense,and $1,140,000 of fixed selling and administrative expense.The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 32,000 units and sold 30,000 units.The company's only product is sold for $249 per unit. The net operating income for the year under super-variable costing is:

A)$1,110,000
B)$932,000
C)$972,000
D)$762,000

Question 9

(Appendix 5A)Phoeuk Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 41,000 units and sold 40,000 units.The company's only product is sold for $231 per unit. The net operating income for the year under super-variable costing is:

A)$802,000
B)$714,000
C)$880,000
D)$824,000

Question 10

(Appendix 5A)Quiller Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 32,000 units and sold 31,000 units.The company's only product is sold for $233 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $12 of direct labor cost to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A)Super-variable costing net operating income exceeds variable costing net operating income by $63,000.
B)Super-variable costing net operating income exceeds variable costing net operating income by $12,000.
C)Variable costing net operating income exceeds super-variable costing net operating income by $12,000.
D)Variable costing net operating income exceeds super-variable costing net operating income by $63,000.

Question 11

(Appendix 5A)All differences between super-variable costing and absorption costing are explained by:

A)the accounting for direct materials and manufacturing overhead costs.
B)the accounting for direct labor and direct materials.
C)the accounting for direct labor and manufacturing overhead costs.
D)the accounting for manufacturing overhead costs.

Question 12

(Appendix 5A)Wienecke Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 44,000 units and sold 41,000 units.The company's only product is sold for $239 per unit. Assume that the company uses an absorption costing system that assigns $16 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced.The net operating income under this costing system is:

A)$1,066,000
B)$856,000
C)$544,000
D)$808,000

Question 13

(Appendix 5A)Wienecke Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 44,000 units and sold 41,000 units.The company's only product is sold for $239 per unit. Assume that the company uses a variable costing system that assigns $16 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

A)$856,000
B)$544,000
C)$808,000
D)$1,066,000

Question 14

(Appendix 5A)Wienecke Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 44,000 units and sold 41,000 units.The company's only product is sold for $239 per unit. Assume that the company uses an absorption costing system that assigns $16 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced.The unit product cost under this costing system is:

A)$88 per unit
B)$213 per unit
C)$174 per unit
D)$104 per unit

Question 15

(Appendix 5A)Wienecke Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 44,000 units and sold 41,000 units.The company's only product is sold for $239 per unit. Assume that the company uses a variable costing system that assigns $16 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:

A)$104 per unit
B)$174 per unit
C)$88 per unit
D)$213 per unit

Question 16

(Appendix 5A)Albanese Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 36,000 units and sold 29,000 units.The company's only product is sold for $236 per unit. The company is considering using either super-variable costing or an absorption costing system that assigns $16 of direct labor cost and $72 of fixed manufacturing overhead to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A)Super-variable costing net operating income exceeds absorption costing net operating income by $616,000.
B)Absorption costing net operating income exceeds super-variable costing net operating income by $616,000.
C)Absorption costing net operating income exceeds super-variable costing net operating income by $504,000.
D)Super-variable costing net operating income exceeds absorption costing net operating income by $504,000.

Question 17

(Appendix 5A)Wienecke Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 44,000 units and sold 41,000 units.The company's only product is sold for $239 per unit. The unit product cost under super-variable costing is:

A)$213 per unit
B)$88 per unit
C)$174 per unit
D)$104 per unit

Question 18

(Appendix 5A)Wienecke Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 44,000 units and sold 41,000 units.The company's only product is sold for $239 per unit. The net operating income for the year under super-variable costing is:

A)$856,000
B)$544,000
C)$808,000
D)$1,066,000

Question 19

(Appendix 5A)The super-variable costing net operating income period can be computed by multiplying the number of units sold by the contribution margin per unit and then subtracting total fixed costs.

Question 20

(Appendix 5A)Feltner Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 49,000 units and sold 42,000 units.The company's only product is sold for $225 per unit. The net operating income for the year under super-variable costing is:

A)($210,000)
B)$532,000
C)$882,000
D)$399,000

Question 21

(Appendix 5A)Moffa Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 54,000 units and sold 47,000 units.The company's only product is sold for $256 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $14 of direct labor cost to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A)Super-variable costing net operating income exceeds variable costing net operating income by $98,000.
B)Variable costing net operating income exceeds super-variable costing net operating income by $98,000.
C)Super-variable costing net operating income exceeds variable costing net operating income by $448,000.
D)Variable costing net operating income exceeds super-variable costing net operating income by $448,000.

Question 22

(Appendix 5A)Sagon Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 29,000 units and sold 23,000 units.The company's only product is sold for $231 per unit. The net operating income for the year under super-variable costing is:

A)$782,000
B)$446,000
C)($202,000)
D)$296,000

Question 23

(Appendix 5A)Prehn Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 36,000 units and sold 30,000 units.The company's only product is sold for $251 per unit. Assume that the company uses a variable costing system that assigns $28 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:

A)$179 per unit
B)$227 per unit
C)$109 per unit
D)$81 per unit

Question 24

(Appendix 5A)Sirmons Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 46,000 units and sold 45,000 units.The company's only product is sold for $249 per unit. The net operating income for the year under super-variable costing is:

A)$1,321,000
B)$1,225,000
C)$1,395,000
D)$1,340,000

Question 25

(Appendix 5A)Schaadt Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 23,000 units and sold 16,000 units.The company's only product is sold for $243 per unit. The unit product cost under super-variable costing is:

A)$167 per unit
B)$106 per unit
C)$212 per unit
D)$84 per unit

Question 26

(Appendix 5A)Feltner Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 49,000 units and sold 42,000 units.The company's only product is sold for $225 per unit. Assume that the company uses a variable costing system that assigns $19 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

A)$532,000
B)$399,000
C)($210,000)
D)$882,000

Question 27

(Appendix 5A)Schaadt Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 23,000 units and sold 16,000 units.The company's only product is sold for $243 per unit. Assume that the company uses a variable costing system that assigns $22 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:

A)$212 per unit
B)$84 per unit
C)$167 per unit
D)$106 per unit

Question 28

(Appendix 5A)Prehn Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 36,000 units and sold 30,000 units.The company's only product is sold for $251 per unit. The unit product cost under super-variable costing is:

A)$81 per unit
B)$109 per unit
C)$227 per unit
D)$179 per unit

Question 29

(Appendix 5A)Prehn Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 36,000 units and sold 30,000 units.The company's only product is sold for $251 per unit. Assume that the company uses an absorption costing system that assigns $28 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced.The unit product cost under this costing system is:

A)$81 per unit
B)$109 per unit
C)$227 per unit
D)$179 per unit

Question 30

(Appendix 5A)Nickolls Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 30,000 units and sold 27,000 units.The company's only product is sold for $230 per unit. Assume that the company uses a variable costing system that assigns $18 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

A)$78,000
B)$405,000
C)$351,000
D)$594,000

Question 31

(Appendix 5A)Schaadt Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 23,000 units and sold 16,000 units.The company's only product is sold for $243 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $22 of direct labor cost to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A)Variable costing net operating income exceeds super-variable costing net operating income by $427,000.
B)Variable costing net operating income exceeds super-variable costing net operating income by $154,000.
C)Super-variable costing net operating income exceeds variable costing net operating income by $154,000.
D)Super-variable costing net operating income exceeds variable costing net operating income by $427,000.

Question 32

(Appendix 5A)Sagon Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 29,000 units and sold 23,000 units.The company's only product is sold for $231 per unit. The company is considering using either super-variable costing or an absorption costing system that assigns $25 of direct labor cost and $56 of fixed manufacturing overhead to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A)Super-variable costing net operating income exceeds absorption costing net operating income by $486,000.
B)Absorption costing net operating income exceeds super-variable costing net operating income by $336,000.
C)Absorption costing net operating income exceeds super-variable costing net operating income by $486,000.
D)Super-variable costing net operating income exceeds absorption costing net operating income by $336,000.

Question 33

(Appendix 5A)Nickolls Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 30,000 units and sold 27,000 units.The company's only product is sold for $230 per unit. The net operating income for the year under super-variable costing is:

A)$78,000
B)$594,000
C)$351,000
D)$405,000

Question 34

(Appendix 5A)Moffa Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 54,000 units and sold 47,000 units.The company's only product is sold for $256 per unit. The unit product cost under super-variable costing is:

A)$93 per unit
B)$171 per unit
C)$107 per unit
D)$219 per unit

Question 35

(Appendix 5A)Feltner Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 49,000 units and sold 42,000 units.The company's only product is sold for $225 per unit. Assume that the company uses an absorption costing system that assigns $19 of direct labor cost and $50 of fixed manufacturing overhead to each unit that is produced.The net operating income under this costing system is:

A)$882,000
B)$399,000
C)($210,000)
D)$532,000

Question 36

(Appendix 5A)Sirmons Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 46,000 units and sold 45,000 units.The company's only product is sold for $249 per unit. Assume that the company uses an absorption costing system that assigns $19 of direct labor cost and $55 of fixed manufacturing overhead to each unit that is produced.The net operating income under this costing system is:

A)$1,321,000
B)$1,225,000
C)$1,395,000
D)$1,340,000

Question 37

(Appendix 5A)Moffa Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 54,000 units and sold 47,000 units.The company's only product is sold for $256 per unit. The net operating income for the year under super-variable costing is:

A)$1,291,000
B)$1,193,000
C)$542,000
D)$1,739,000

Question 38

(Appendix 5A)Prehn Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 36,000 units and sold 30,000 units.The company's only product is sold for $251 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $28 of direct labor cost to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A)Super-variable costing net operating income exceeds variable costing net operating income by $168,000.
B)Super-variable costing net operating income exceeds variable costing net operating income by $420,000.
C)Variable costing net operating income exceeds super-variable costing net operating income by $420,000.
D)Variable costing net operating income exceeds super-variable costing net operating income by $168,000.

Question 39

(Appendix 5A)Sagon Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 29,000 units and sold 23,000 units.The company's only product is sold for $231 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $25 of direct labor cost to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A)Super-variable costing net operating income exceeds variable costing net operating income by $150,000.
B)Super-variable costing net operating income exceeds variable costing net operating income by $336,000.
C)Variable costing net operating income exceeds super-variable costing net operating income by $336,000.
D)Variable costing net operating income exceeds super-variable costing net operating income by $150,000.

Question 40

(Appendix 5A)Prehn Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 36,000 units and sold 30,000 units.The company's only product is sold for $251 per unit. The company is considering using either super-variable costing or an absorption costing system that assigns $28 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

A)Super-variable costing net operating income exceeds absorption costing net operating income by $6,000.
B)Absorption costing net operating income exceeds super-variable costing net operating income by $588,000.
C)Absorption costing net operating income exceeds super-variable costing net operating income by $6,000.
D)Super-variable costing net operating income exceeds absorption costing net operating income by $588,000.

Question 41

(Appendix 5A)Rhoda Corporation manufactures and sells one product.In the company's first year of operations,the variable cost consisted solely of direct materials of $87 per unit.The annual fixed costs were $912,000 of direct labor cost,$2,128,000 of fixed manufacturing overhead expense,and $1,320,000 of fixed selling and administrative expense.The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 38,000 units and sold 33,000 units.The company's only product is sold for $240 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year.
b.Assume the company uses super-variable costing.Prepare an income statement for the year.

Question 42

(Appendix 5A)Griffy Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 30,000 units and sold 23,000 units.The company's only product is sold for $239 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses an absorption costing system that assigns $14 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.
c.Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes.

Question 43

(Appendix 5A)Capello Corporation manufactures and sells one product.In the company's first year of operations,the variable cost consisted solely of direct materials of $93 per unit.The annual fixed costs were $675,000 of direct labor cost,$1,701,000 of fixed manufacturing overhead expense,and $780,000 of fixed selling and administrative expense.The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 27,000 units and sold 20,000 units.The company's only product is sold for $258 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses an absorption costing system that assigns $25 of direct labor cost and $63 of fixed manufacturing overhead to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.

Question 44

(Appendix 5A)Goodwyn Corporation manufactures and sells one product.In the company's first year of operations,the variable cost consisted solely of direct materials of $89 per unit.The annual fixed costs were $1,269,000 of direct labor cost,$3,619,000 of fixed manufacturing overhead expense,and $1,260,000 of fixed selling and administrative expense.The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 47,000 units and sold 42,000 units.The company's only product is sold for $259 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses a variable costing system that assigns $27 of direct labor cost to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.

Question 45

(Appendix 5A)Slezak Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 35,000 units and sold 31,000 units.The company's only product is sold for $264 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses an absorption costing system that assigns $28 of direct labor cost and $68 of fixed manufacturing overhead to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.

Question 46

(Appendix 5A)Ellert Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 52,000 units and sold 51,000 units.The company's only product is sold for $251 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses a variable costing system that assigns $26 of direct labor cost to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.

Question 47

(Appendix 5A)Calder Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 48,000 units and sold 45,000 units.The company's only product is sold for $258 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year.
b.Assume the company uses super-variable costing.Prepare an income statement for the year.

Question 48

(Appendix 5A)Grand Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 23,000 units and sold 21,000 units.The company's only product is sold for $254 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses a variable costing system that assigns $20 of direct labor cost to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.
c.Assume that the company uses an absorption costing system that assigns $20 of direct labor cost and $71 of fixed manufacturing overhead to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.
d.Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes.
e.Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes.

Question 49

(Appendix 5A)Mendoza Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations,the company produced 47,000 units and sold 45,000 units.The company's only product is sold for $275 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses a variable costing system that assigns $24 of direct labor cost to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.
c.Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes.