Packer Company, which has only one
product, has provided the following data concerning its most recent month of
operations:

Selling price

$

81

Units in beginning
inventory

300

Units produced

1,800

Units sold

1,600

Units in ending
inventory

500

Variable costs per
unit:

Direct
materials

$

19

Direct
labor

$

16

Variable
manufacturing overhead

$

1

Variable
selling and administrative

$

11

Fixed costs:

Fixed
manufacturing overhead

$

34,200

Fixed
selling and administrative

$

3,200

The company produces the same
number of units every month, although the sales in units vary from month to
month. The company’s variable costs per unit and total fixed costs have been
constant from month to month.

Required:

a.

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

Unit product cost

$

b.

Prepare a contribution format
income statement for the month using variable costing.(Input all amounts as positive values.)

Variable
costing income statement

(Click to select)
Sales
Variable selling and administrative
Variable cost of good sold
Fixed manufacturing overhead
Fixed selling and adminstrative

$

Variable expenses:

(Click to select)
Fixed manufacturing overhead
Sales
Fixed selling and adminstrative expenses
Variable selling and administrative expenses
Variable cost of goods sold

$

(Click to select)
Fixed manufacturing overhead
Variable cost of goods sold
Sales
Fixed selling and adminstrative expenses
Variable selling and administrative expenses

Contribution margin

Fixed expenses:

(Click to select)
Fixed manufacturing overhead
Variable cost of goods sold
Fixed selling and adminstrative expenses
Sales
Variable selling and administrative expenses

(Click to select)
Fixed selling and adminstrative expenses
Fixed manufacturing overhead
Variable selling and administrative expenses
Variable cost of goods sold
Sales

(Click to select)
Net operating income
Net operating loss

$

c.

Without preparing an income
statement, determine the absorption costing net operating income for the
month. (Hint: Use the reconciliation method.)

Net operating income

$

Camren Corporation has
two major business segments-Apparel and Accessories. Data concerning those
segments for December appear below:

Sales
revenues, Apparel

$

680,000

Variable
expenses, Apparel

$

299,000

Traceable
fixed expenses, Apparel

$

102,000

Sales
revenues, Accessories

$

770,000

Variable
expenses, Accessories

$

424,000

Traceable
fixed expenses, Accessories

$

100,000

Common fixed expenses
totaled $357,000 and were allocated as follows: $161,000 to the Apparel
business segment and $196,000 to the Accessories business segment.

Required:

Prepare a segmented
income statement in the contribution format for the company.(Input all amounts as positive values.)

Total

Apparel

Accessories

(Click to select)
Cost of goods sold
Common fixed expenses
Traceable fixed expenses
Sales
Direct materials

$

$

$

(Click to select)
Common fixed expenses
Traceable fixed expenses
Variable expenses
Direct materials
Cost of goods sold

Contribution
margin

(Click to select)
Cost of goods sold
Traceable fixed expenses
Common fixed expenses
Variable expenses
Direct materials

Segment
margin

$

$

(Click to select)
Traceable fixed expenses
Cost of goods sold
Direct materials
Common fixed expenses
Variable expenses

(Click to select)
Net operating loss
Net operating income

$

Wartenberg Corporation uses
customers served as its measure of activity. The company bases its budgets on
the following information: Revenue should be $3.80 per customer served. Wages
and salaries should be $38,800 per month plus $1.00 per customer served.
Supplies should be $0.60 per customer served. Insurance should be $7,100 per
month. Miscellaneous expenses should be $5,100 per month plus $0.30 per
customer served.

The company reported the following
actual results for January:

Customers served

30,000

Revenue

$

115,500

Wages and salaries

$

66,900

Supplies

$

15,900

Insurance

$

6,800

Miscellaneous

$

15,500

Required:

Prepare a report showing the
company’s revenue and spending variances for January.(Input all amounts as positive
values. Leave no cells blank – be certain to enter “0”
wherever required. Indicate the effect of each variance by selecting
“F” for favorable, “U” for unfavorable, and
“None” for no effect (i.e., zero variance).

Wartenberg
Corporation
Revenue and Spending Variances
For the Month Ended January 31

Revenue

$

(Click to select)
F
U
None

Expenses:

Wages and salaries

(Click to select)
F
U
None

Supplies

(Click to select)
F
U
None

Insurance

(Click to select)
F
U
None

Miscellaneous

(Click to select)
F
U
None

Total expenses

(Click to select)
F
U
None

Net operating income

$

(Click to select)
F
U
None

Vera Corporation bases
its budgets on the activity measure customers served. During September, the
company planned to serve 28,000 customers, but actually served 27,000
customers. The company has provided the following data concerning the
formulas it uses in its budgeting:

Fixed
element
per month

Variable
element
per customer

Revenue

–

$

5.00

Wages and
salaries

$

35,800

$

1.90

Supplies

$

0

$

0.60

Insurance

$

13,000

$

0.00

Miscellaneous

$

7,500

$

0.20

Required:

Prepare the company’s
flexible budget for September based on the actual level of activity for the
month.(Input all amounts as
positive values.)

Vera Corporation
Flexible Budget
For the Month Ended September 30

Revenue

$

Expenses:

Wages and
salaries

Supplies

Insurance

Miscellaneous

Total
expenses

Net
operating income

$