Reference no: EM133461

Question :

1. A portion of the net fixed manufacturing overhead cost incurred throughout a period can:

A. be excluded from cost of goods sold under absorption costing.

B. be charged as a period cost with the remainder deferred under variable costing.

C. never be excluded from cost of goods sold under absorption costing.

D. never be excluded from cost of goods sold under variable costing.

2. Variable manufacturing overhead costs are treated as period costs under both absorption and variable costing.

3. Consider that a segment has variable expenses and traceable fixed expenses, an increase in sales should increase profits by an amount equal to the sales times the segment margin ratio.

4. The salary paid to a store manager is a traceable fixed expense.

Molano Corporation has provided the subsequent data concerning manufacturing overhead for June:

The company's Cost of Goods Sold was $255,000 prior to adjusting for any overapplied or underapplied overhead. Which of the subsequent statements is true?

A. Manufacturing overhead was underapplied by $7,000; Cost of Goods Sold after adjusting for any overapplied and underapplied overhead is $248,000

B. Manufacturing overhead was overapplied by $7,000; Cost of Goods Sold after adjusting for any underapplied or overapplied overhead is $248,000

C. Manufacturing overhead was underapplied by $7,000; Cost of Goods Sold after adjusting for any underapplied or overapplied overhead is $262,000

D. Manufacturing overhead was overapplied by $7,000; Cost of Goods Sold after adjusting for any underapplied or overapplied overhead is $262,000