36. In an income statement prepared as an internal report using the direct( variable) costing method, fixed selling and administrative expenses would
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