Question

in question? A) S1,900.000 B) $2.800.000 $1,300,000 D1 31.100,000 E) $1,700,000 - Henderson Co. has fixed costs of $16,000 and a contribution margin ratio of 247 expected sales are $200,000, what is the margin of safety as a percent of sales A) 6%. 000 - 50,000 25%. C) 3396 - 200000 D) 50% sovo - 25% E) 759 700,000 25) Gladstone Co. has expected sales of $326,000 for the upcoming month and its monthly break even sales are $300,000. What is the margin of safety as a percent of sales, rounded to the nearest whole percent? 320,000 A) 996 B) 10896 -306ODO C) 52%. 2,000 D8% -= 0,079 = 8% E) 92%. 326000 26) Which of the following statements is true? A) Under variable costing, direct materials and direct labor are expensed as period expenses. B) Under variable costing, fixed manufacturing overhead is expensed as period expenses. C) Fixed manufacturing overhead costs are treated the same under both absorption costing and variable costing. D) Reported income under absorption costing is not affected by production level changes. E) Under absorption costing, fixed manufacturing overhead is expensed as period expenses. 27) Under absorption costing, which of the following statements is not true? A) Over production and inventory buildup can occur because of how managers are evaluated and rewarded. B) The fixed costs per unit decline as more units are produced. C) Variable inventory costs are treated in the same manner as they are under variable costing. D) Fixed inventory costs are treated in the same manner as they are under variable costing, E) All manufacturing costs are assigned to products. 28) When the number of units sold exceeds the number of units produced, income reported under absorption costing will be lower than variable costing. Which of the following gives the best justification of the above statement? A) Income under absorption costing is always less than income reported using variable costing, regardless of the number of units produced. B) Income under absorption costing is always more than income reported using variable costing,
having trouble with numbers 26-28

Answer 1

Question 28 is not giving all options so only question 26 and 27 is answered

Answer 26 : B) Under variable costing, fixed manufacturing overhead is expensed as period expenses

B option is true

as

Under variable costing all variable manufacturing expenses are treated as product cost and all fixed manufacturing expenses are treated as period cost

all other statement are false as they are talking of wrong treatment

Answer 27. D) Fixed inventory costs are treated in the same manner as they are under variable costing

option D) is false

as

Under variable costing fixed inventory cost is treated as period cost whereas under absorption costing fixed inventory cost is treated as product cost hence the statement given is not true

all other statements are giving correct view

Hit Thumbs up if satisfied

Have any query mention in comment section please

Thank you