50.
Within the relevant range:
51.
Discretionary fixed costs:
52.
When the activity level declines within the relevant range, what should happen with
respect to the following?
Fixed cost per unit
Variable cost per unit
A)
No change
Increase
B)
Increase
Increase
C)
Increase
No change
D)
No change
No change
53.
Stott Company requires one full-time dock hand for every 500 packages loaded daily. The
wages for these dock hands would be:
54.
When the level of activity decreases, variable costs will:
55.
Data for Cost A and Cost B appear below:
Units
Produced
Cost
Per
Unit
Total
Cost
Cost A
1
?
$10
10
?
$100
100
?
$1,000
1,000
?
$10,000
Cost B
1
$5,000
?
10
$500
?
100
$50
?
1,000
$5
?
Which of the above best describes the behavior of Costs A and B?
56.
Which of the following companies would have the highest proportion of variable costs in
its cost structure?
57.
An example of a discretionary fixed cost would be:
58.
For planning, control, and decision-making purposes:
59.
Which of the following costs, if expressed on a per unit basis, would be expected to
decrease as the level of production and sales increases?
60.
In describing the cost equation, Y = a + bX, “a” is:
61.
Which of the following is an example of a cost that is variable with respect to the number
of units produced?
62.
Contribution margin means:
63.
The ________________________ is the amount remaining from sales revenue after all
variable expenses have been deducted.
64.
A sunk cost is:
65.
The cost of factory machinery purchased last year is:
66.
Abbott Company’s manufacturing overhead is 20% of its total conversion costs. If direct
labor is $38,000 and if direct materials are $23,000, the manufacturing overhead is:
67.
During the month of April, direct labor cost totaled $15,000 and direct labor cost was 30%
of prime cost. If total manufacturing costs during April were $79,000, the manufacturing
overhead was:
68.
In April direct labor was 70% of conversion cost. If the manufacturing overhead for the
month was $42,000 and the direct materials cost was $28,000, the direct labor cost was:
69.
A manufacturing company prepays its insurance coverage for a three-year period. The
premium for the three years is $2,400 and is paid at the beginning of the first year.
Seventy percent of the premium applies to manufacturing operations and thirty percent
applies to selling and administrative activities. What amounts should be considered
product and period costs respectively for the first year of coverage?
Product
Period
A)
$800
$0
B)
$0
$800
C)
$560
$240
D)
$240
$560
70.
The following costs were incurred in April:
Direct materials
$18,000
Direct labor
$21,000
Manufacturing overhead
$33,000
Selling expenses
$14,000
Administrative expenses
$19,000
Conversion costs during the month totaled:
71.
The following costs were incurred in April:
Direct materials
$29,000
Direct labor
$24,000
Manufacturing overhead
$14,000
Selling expenses
$18,000
Administrative expenses
$18,000
Prime costs during the month totaled:
72.
Eddy Corporation has provided the following production and total cost data for two levels
of monthly production volume. The company produces a single product.
Production volume
6,000 units
7,000 units
Direct materials
$582,600
$679,700
Direct labor
$136,200
$158,900
Manufacturing overhead
$691,800
$714,700
The best estimate of the total variable manufacturing cost per unit is:
73.
The following data pertains to activity and costs for two months:
June
July
Activity level in units
10,000
12,000
Direct materials
$16,000
$?
Fixed factory rent
12,000
?
Manufacturing overhead
10,000
?
Total cost
$38,000
$42,900
Assuming that these activity levels are within the relevant range, the manufacturing
overhead for July was:
74.
At an activity level of 4,000 machine-hours in a month, Curt Corporation’s total variable
production engineering cost is $154,200 and its total fixed production engineering cost is
$129,000. What would be the total production engineering cost per unit, both fixed and
variable, at an activity level of 4,300 machine-hours in a month? Assume that this level of
activity is within the relevant range.
1-138
75.
Ricwy Corporation uses the cost formula Y = $4,800 + $0.40X for the maintenance cost,
where X is machine-hours. The August budget is based on 9,000 hours of planned
machine time. Maintenance cost expected to be incurred during August is:
76.
Given the cost formula Y = $18,000 + $6X, total cost at an activity level of 9,000 units
would be:
77.
At an activity level of 6,900 units in a month, Zelinski Corporation’s total variable
maintenance and repair cost is $408,756 and its total fixed maintenance and repair cost is
$230,253. What would be the total maintenance and repair cost, both fixed and variable, at
an activity level of 7,100 units in a month? Assume that this level of activity is within the
relevant range.