1-140
78.
Given the cost formula, Y = $7,000 + $1.80X, total cost for an activity level of 4,000 units
would be:
1-141
79.
Kaelker Corporation reports that at an activity level of 7,000 units, its total variable cost is
$590,730 and its total fixed cost is $372,750. What would be the total cost, both fixed and
variable, at an activity level of 7,100 units? Assume that this level of activity is within the
relevant range.
80.
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:
1-143
1-144
81.
Cardiv Corporation has provided the following production and average cost data for two
levels of monthly production volume. The company produces a single product.
Production volume
4,000 units
5,000 units
Direct materials
$85.80 per unit
$85.80 per unit
Direct labor
$56.10 per unit
$56.10 per unit
Manufacturing overhead
$73.60 per unit
$62.10 per unit
The best estimate of the total cost to manufacture 4,300 units is closest to:
1-145
82.
Harris Corporation is a wholesaler that sells a single product. Management has provided
the following cost data for two levels of monthly sales volume. The company sells the
product for $84.40 per unit.
Sales volume (units)
5,000
6,000
Cost of sales
$285,000
$342,000
Selling and administrative costs
$107,500
$120,000
The best estimate of the total variable cost per unit is:
83.
Werner Brothers, Inc., used the high-low method to derive its cost formula for electrical
power cost. According to the cost formula, the variable cost per unit of activity is $2 per
machine-hour. Total electrical power cost at the high level of activity was $9,400 and at
the low level of activity was $9,000. If the high level of activity was 2,200 machine hours,
then the low level of activity was:
84.
Davis 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
1,000 units
2,000 units
Direct materials
$44,200
$88,400
Direct labor
$37,300
$74,600
Manufacturing overhead
$48,500
$62,200
The best estimate of the total monthly fixed manufacturing cost is:
85.
Anderson Corporation has provided the following production and average cost data for two
levels of monthly production volume. The company produces a single product.
Production volume
4,000 units
5,000 units
Direct materials
$99.20 per unit
$99.20 per unit
Direct labor
$45.50 per unit
$45.50 per unit
Manufacturing overhead
$94.00 per unit
$77.60 per unit
The best estimate of the total monthly fixed manufacturing cost is:
1-150
1-151
86.
Farmington 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
$195,000
$227,500
Direct labor
$113,400
$132,300
Manufacturing overhead
$913,200
$931,700
The best estimate of the total cost to manufacture 6,300 units is closest to:
1-152
1-153
87.
Baker Corporation has provided the following production and average cost data for two
levels of monthly production volume. The company produces a single product.
Production volume
1,000 units
3,000 units
Direct materials
$30.90 per unit
$30.90 per unit
Direct labor
$40.20 per unit
$40.20 per unit
Manufacturing overhead
$64.60 per unit
$33.80 per unit
The best estimate of the total variable manufacturing cost per unit is:
1-154
88.
Gambino Corporation is a wholesaler that sells a single product. Management has
provided the following cost data for two levels of monthly sales volume. The company sells
the product for $138.80 per unit.
Sales volume (units)
6,000
7,000
Cost of sales
$369,000
$430,500
Selling and administrative costs
$407,400
$418,600
Total cost at 7,000 units
Fixed cost
The best estimate of the total monthly fixed cost is:
1-155
89.
Iaci Corporation is a wholesaler that sells a single product. Management has provided the
following cost data for two levels of monthly sales volume. The company sells the product
for $133.60 per unit.
Sales volume (units)
4,000
5,000
Cost of sales
$383,600
$479,500
Selling and administrative costs
$124,400
$136,000
The best estimate of the total contribution margin when 4,300 units are sold is:
1-157
1-158
90.
Maintenance costs at a Whetsel Corporation factory are listed below:
Machine-Hours
Maintenance Cost
March
3,135
$48,340
April
3,095
$47,993
May
3,133
$48,345
June
3,157
$48,548
July
3,065
$47,733
August
3,076
$47,830
September
3,084
$47,880
October
3,125
$48,247
November
3,098
$48,014
Change
Management believes that maintenance cost is a mixed cost that depends on machine-
hours. Use the high-low method to estimate the variable and fixed components of this
cost. Compute the variable component first and round off to the nearest whole cent.
Compute the fixed component second and round off to the nearest whole dollar. These
estimates would be closest to:
1-159