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Social Science Clinic => Accounting => Topic started by: AEWBW on Mar 6, 2021

Title: Venus Corporation incurred fixed manufacturing costs of $4,800 during 2017. Other information for ...
Post by: AEWBW on Mar 6, 2021

Question 1

The gross-margin format is used for ________.
◦ variable costing income statement
◦ mixed costing income statement
◦ absorption costing income statement
◦ standard costing income statement

Question 2

Venus Corporation incurred fixed manufacturing costs of $4,800 during 2017. Other information for 2017 includes:
 The budgeted denominator level is 1,600 units.
 Units produced total 770 units.
 Units sold total 630 units.
 Beginning inventory was zero.

The company uses variable costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.

Operating income using variable costing will be ________ than operating income if using absorption costing.
◦ $2,490 higher
◦ $2,490 lower
◦ $1,890 higher
◦ $420 lower

Title: Venus Corporation incurred fixed manufacturing costs of $4,800 during 2017. Other information for ...
Post by: yeungji on Mar 6, 2021

Answer 1

absorption costing income statement

Answer 2

$420 lower