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Topic Area: Cost Classifications for Manufacturing Companies
110.
A partial listing of costs incurred during December at Rooks Corporation appears below:
Factory
supplies
$7,000
Administrative
wages and
salaries
$92,000
Direct
materials
$176,000
Sales staff
salaries
$32,000
Factory
depreciation
$52,000
Corporate
headquarters
building rent
$47,000
Indirect labor
$23,000
Marketing
$136,000
Direct labor
$82,000
The total of the manufacturing overhead costs listed above for December is:
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111.
A partial listing of costs incurred during December at Rooks Corporation appears below:
Factory
supplies
$7,000
Administrative
wages and
salaries
$92,000
Direct
materials
$176,000
Sales staff
salaries
$32,000
Factory
depreciation
$52,000
Corporate
headquarters
building rent
$47,000
Indirect labor
$23,000
Marketing
$136,000
Direct labor
$82,000
The total of the product costs listed above for December is:
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112.
A partial listing of costs incurred at Gilhooly Corporation during September appears below:
Direct materials
$183,000
Utilities, factory
$9,000
Administrative salaries
$90,000
Indirect labor
$25,000
Sales commissions
$33,000
Depreciation of production equipment
$25,000
Depreciation of administrative equipment
$32,000
Direct labor
$124,000
Advertising
$148,000
The total of the manufacturing overhead costs listed above for September is:
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113.
A partial listing of costs incurred at Gilhooly Corporation during September appears below:
Direct materials
$183,000
Utilities, factory
$9,000
Administrative salaries
$90,000
Indirect labor
$25,000
Sales commissions
$33,000
Depreciation of production equipment
$25,000
Depreciation of administrative equipment
$32,000
Direct labor
$124,000
Advertising
$148,000
The total of the product costs listed above for September is:
1-184
114.
A partial listing of costs incurred at Gilhooly Corporation during September appears below:
Direct materials
$183,000
Utilities, factory
$9,000
Administrative salaries
$90,000
Indirect labor
$25,000
Sales commissions
$33,000
Depreciation of production equipment
$25,000
Depreciation of administrative equipment
$32,000
Direct labor
$124,000
Advertising
$148,000
The total of the period costs listed above for September is:
1-185
115.
At a sales volume of 37,000 units, Maks Corporation’s property taxes (a cost that is fixed
with respect to sales volume) total $802,900.
To the nearest whole dollar, what should be the total property taxes at a sales volume of
39,700 units? (Assume that this sales volume is within the relevant range.)
116.
At a sales volume of 37,000 units, Maks Corporation’s property taxes (a cost that is fixed
with respect to sales volume) total $802,900.
To the nearest whole cent, what should be the average property tax per unit at a sales
volume of 40,300 units? (Assume that this sales volume is within the relevant range.)
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117.
Corcetti Company manufactures and sells prewashed denim jeans. Large rolls of denim
cloth are purchased and are first washed in a giant washing machine. After the cloth is
dried, it is cut up into jean pattern shapes and then sewn together. The completed jeans
are sold to various retail chains.
Which of the following terms could be used to correctly describe the cost of the soap
used to wash the denim cloth?
Direct Cost
Product Cost
A)
Yes
Yes
B)
Yes
No
C)
No
Yes
D)
No
No
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118.
Corcetti Company manufactures and sells prewashed denim jeans. Large rolls of denim
cloth are purchased and are first washed in a giant washing machine. After the cloth is
dried, it is cut up into jean pattern shapes and then sewn together. The completed jeans
are sold to various retail chains.
Which of the following terms could be used to correctly describe the wages paid to the
workers that cut up the cloth into the jean pattern shapes?
Conversion Cost
Variable Cost
A)
Yes
Yes
B)
Yes
No
C)
No
Yes
D)
No
No
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119.
Corcetti Company manufactures and sells prewashed denim jeans. Large rolls of denim
cloth are purchased and are first washed in a giant washing machine. After the cloth is
dried, it is cut up into jean pattern shapes and then sewn together. The completed jeans
are sold to various retail chains.
Which of the following terms could be used to correctly describe the cost of the thread
used to sew the jeans together?
Manufacturing Overhead Cost
Fixed Cost
A)
Yes
Yes
B)
Yes
No
C)
No
Yes
D)
No
No
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120.
At an activity level of 8,300 machine-hours in a month, Baudry Corporation’s total variable
maintenance cost is $220,448 and its total fixed maintenance cost is $556,764.
What would be the total variable maintenance cost at an activity level of 8,600 machine-
hours in a month? Assume that this level of activity is within the relevant range.
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121.
At an activity level of 8,300 machine-hours in a month, Baudry Corporation’s total variable
maintenance cost is $220,448 and its total fixed maintenance cost is $556,764.
What would be the average fixed maintenance cost per unit at an activity level of 8,600
machine-hours in a month? Assume that this level of activity is within the relevant range.
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122.
Emerton Corporation leases its corporate headquarters building. This lease cost is fixed
with respect to the company’s sales volume. In a recent month in which the sales volume
was 32,000 units, the lease cost was $716,800.
To the nearest whole dollar, what should be the total lease cost at a sales volume of
30,900 units in a month? (Assume that this sales volume is within the relevant range.)
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123.
Emerton Corporation leases its corporate headquarters building. This lease cost is fixed
with respect to the company’s sales volume. In a recent month in which the sales volume
was 32,000 units, the lease cost was $716,800.
To the nearest whole cent, what should be the average lease cost per unit at a sales
volume of 34,400 units in a month? (Assume that this sales volume is within the relevant
range.)
124.
Hadrana Corporation reports that at an activity level of 5,500 units, its total variable cost is
$275,330 and its total fixed cost is $86,240.
What would be the total variable cost at an activity level of 5,600 units? Assume that this
level of activity is within the relevant range.
125.
Hadrana Corporation reports that at an activity level of 5,500 units, its total variable cost is
$275,330 and its total fixed cost is $86,240.
What would be the average fixed cost per unit at an activity level of 5,600 units? Assume
that this level of activity is within the relevant range.
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126.
At a sales volume of 30,000 units, Carne Company’s total fixed costs are $30,000 and total
variable costs are $45,000. The relevant range is 20,000 to 40,000 units.
If Carne Company were to sell 32,000 units, the total expected cost would be:
127.
At a sales volume of 30,000 units, Carne Company’s total fixed costs are $30,000 and total
variable costs are $45,000. The relevant range is 20,000 to 40,000 units.
If Carne Company were to sell 40,000 units, the total expected cost per unit would be:
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128.
At a sales volume of 35,000 units, Cly Corporation’s sales commissions (a cost that is
variable with respect to sales volume) total $525,000.
To the nearest whole dollar, what should be the total sales commissions at a sales volume
of 36,100 units? (Assume that this sales volume is within the relevant range.)
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129.
At a sales volume of 35,000 units, Cly Corporation’s sales commissions (a cost that is
variable with respect to sales volume) total $525,000.
To the nearest whole cent, what should be the average sales commission per unit at a
sales volume of 33,600 units? (Assume that this sales volume is within the relevant
range.)
130.
Kodama Corporation staffs a helpline to answer questions from customers. The costs of
operating the helpline are variable with respect to the number of calls in a month. At a
volume of 30,000 calls in a month, the costs of operating the helpline total $369,000.
To the nearest whole dollar, what should be the total cost of operating the helpline costs
at a volume of 33,800 calls in a month? (Assume that this call volume is within the relevant
range.)