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Accounting Three Problems

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Question;QUESTION 11. Vision Tester, Inc., a manufacturer of optical glass, began operations on February 1 of the current year. During this time, the company produced 900,000 units and sold 800,000 units at a sales price of $12 per unit. Cost information for this year is shown below.Given this information, which of the following is true?a.Net income under variable costing will exceed net income under absorption costing by $50,000.b.Net income under absorption costing will exceed net income under variable costing by $50,000.c.Net income will be the same under both absorption and variable costing.d.Net income under variable costing will exceed net income under absorption costing by $60,000.e.Net income under absorption costing will exceed net income under variable costing by $60,000.QUESTION 21. Which of the following best describes costs assigned to the product under the absorption costing method?Direct labor (DL)Direct materials (DM)Variable selling and administrativeVariable manufacturing overheadFixed selling and administrativeFixed manufacturing overheada.DL, DM, variable selling and administrative costs and variable manufacturing overhead.b.DL, DM, and variable manufacturing overhead.c.DL, DM, variable manufacturing overhead, and fixed manufacturing overhead.d.DL and DM.e.DL, DM, fixed selling and administrative, and fixed manufacturing overhead.QUESTION 31. A company is currently operating at 80% capacity producing 5,000 units. Current cost information relating to this production is shown in the table below.The company has been approached by a customer with a request for a 100 unit special order. What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits?a.Any amount over $34 per unit.b.Any amount over $20 per unit.c.Any amount over $14 per unit.d.Any amount over $9 per unit.e.Any amount over $5 per unit.

 

Paper#40935 | Written in 18-Jul-2015

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