37 . Cay Co .' s 2005 fixed manufacturing overhead costs totaled $ 100,000 , and variable selling costs totaled $ 80,000 . Under direct costing , how should these costs be classified ?
38 . Using the variable costing method , which of the following costs are assigned to inventory ?
39 . A manufacturing company prepares income statements using both absorption and variable costing methods . At the end of a period , actual sales revenues , total gross profit , and total contribution margin approximated budgeted figures , whereas income was substantially greater than the budgeted amount . There was no beginning or ending inventories . The most likely explanation of the income increase is that , compared to budget , actual
40 . Which of the following statements is correct regarding the difference between the absorption costing and variable costing methods ?
41 . A manufacturing company prepares income statements using both absorption and variable costing methods . At the end of a period , actual sales revenues , total gross profit , and total contribution margin approximated the budgeted figures , whereas income was substantially below the budgeted amount . There was no beginning or ending inventories . The most likely explanation for the income shortfall is that , compared to budget , actual
42 . A single-product company prepares income statements using both absorption and variable costing methods . Manufacturing overhead cost applied per unit produced in 2005 was the same as in 2004 . The 2005 variable costing statement reported a profit , whereas the 2005 absorption costing statement reported a loss . The difference in reported income could be explained by the units produced in 2005 being
43 . At the end of Killo Co .' s first year of operations , 1,000 units of inventory remained on hand . Variable and fixed manufacturing costs per unit were $ 90 and $ 20 , respectively . If Killo uses absorption costing rather than direct ( variable ) costing , the result would be a higher pretax income of