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.
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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:
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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.
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78. Given the cost formula, Y = $7,000 + $1.80X, total cost for an activity level of 4,000 units
would be:
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:
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:
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:
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:
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: