193) Fasheh Corporation’s relevant range of activity is 7,000 units to 11,000 units. When it
produces and sells 9,000 units, its average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$
5.50
Direct labor
$
3.90
Variable manufacturing overhead
$
1.30
Fixed manufacturing overhead
$
13.50
Fixed selling expense
$
2.25
Fixed administrative expense
$
1.80
Sales commissions
$
0.50
Variable administrative expense
$
0.45
If 10,000 units are produced, the total amount of manufacturing overhead cost is closest to:
A) $180,500
B) $134,500
C) $157,500
D) $146,000
($1.30 per unit × 10,000 units)
13,000
121,500
Total manufacturing overhead cost
134,500
194) Rhome Corporation’s relevant range of activity is 2,000 units to 6,000 units. When it
produces and sells 4,000 units, its average costs per unit are as follows:
Average Cost
per Unit
$
5.40
$
3.55
$
1.70
$
3.00
$
0.60
$
0.40
$
1.00
$
0.40
If 5,000 units are sold, the variable cost per unit sold is closest to:
A) $13.65
B) $10.65
C) $16.05
D) $12.05
Direct materials
$
Direct labor
Variable manufacturing overhead
Sales commissions
Variable administrative expense
Variable cost per unit sold
$
195) Rhome Corporation’s relevant range of activity is 2,000 units to 6,000 units. When it
produces and sells 4,000 units, its average costs per unit are as follows:
Average Cost
per Unit
$
5.40
$
3.55
$
1.70
$
3.00
$
0.60
$
0.40
$
1.00
$
0.40
If 5,000 units are sold, the total variable cost is closest to:
A) $53,250
B) $68,250
C) $80,250
D) $60,250
Direct materials
$
Direct labor
Variable manufacturing overhead
Sales commissions
Variable administrative expense
Variable cost per unit sold
$
Variable cost per unit sold (a)
Number of units sold (b)
Total variable costs (a) × (b)
196) Rhome Corporation’s relevant range of activity is 2,000 units to 6,000 units. When it
produces and sells 4,000 units, its average costs per unit are as follows:
Average Cost
per Unit
$
5.40
$
3.55
$
1.70
$
3.00
$
0.60
$
0.40
$
1.00
$
0.40
If 5,000 units are produced, the average fixed manufacturing cost per unit produced is closest to:
A) $3.75
B) $2.40
C) $2.70
D) $3.00
($3.00 per unit × 4,000 units*) (a)
$
Number of units produced (b)
Average fixed manufacturing cost per unit produced (a) ÷ (b)
$
197) Rhome Corporation’s relevant range of activity is 2,000 units to 6,000 units. When it
produces and sells 4,000 units, its average costs per unit are as follows:
Average Cost
per Unit
$
5.40
$
3.55
$
1.70
$
3.00
$
0.60
$
0.40
$
1.00
$
0.40
If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
A) $13,500
B) $18,000
C) $12,000
D) $15,000
Fixed manufacturing overhead per unit
$
Number of units produced*
Total fixed manufacturing overhead cost
$
198) Rhome Corporation’s relevant range of activity is 2,000 units to 6,000 units. When it
produces and sells 4,000 units, its average costs per unit are as follows:
Average Cost
per Unit
$
5.40
$
3.55
$
1.70
$
3.00
$
0.60
$
0.40
$
1.00
$
0.40
If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:
A) $20,500
B) $23,000
C) $18,000
D) $19,250
Total variable manufacturing overhead cost
($1.70 per unit × 5,000 units)
$
Total fixed manufacturing overhead cost
($3.00 per unit × 4,000 units*)
Total manufacturing overhead cost (a)
$
199) Wessner Corporation has provided the following information:
Cost per Unit
Cost per Period
Direct materials
$
6.20
Direct labor
$
2.80
Variable manufacturing overhead
$
1.45
Fixed manufacturing overhead
$
12,000
Sales commissions
$
1.00
Variable administrative expense
$
0.55
Fixed selling and administrative expense
$
4,000
If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:
A) $18,000
B) $19,250
C) $18,625
D) $20,500
Total variable manufacturing overhead cost
($1.45 per unit × 5,000 units)
$
7,250
Total fixed manufacturing overhead cost
12,000
Total manufacturing overhead cost (a)
$
19,250
200) Wessner Corporation has provided the following information:
Cost per Unit
Cost per Period
Direct materials
$
6.20
Direct labor
$
2.80
Variable manufacturing overhead
$
1.45
Fixed manufacturing overhead
$
12,000
Sales commissions
$
1.00
Variable administrative expense
$
0.55
Fixed selling and administrative expense
$
4,000
If the selling price is $25.00 per unit, the contribution margin per unit sold is closest to:
A) $9.00
B) $16.00
C) $11.55
D) $13.00
Selling price per unit
25.00
Direct materials
6.20
Direct labor
2.80
Variable manufacturing overhead
1.45
Sales commissions
1.00
Variable administrative expense
0.55
Variable cost per unit sold
12.00
Contribution margin per unit
13.00
201) Wessner Corporation has provided the following information:
Cost per Unit
Cost per Period
Direct materials
$
6.20
Direct labor
$
2.80
Variable manufacturing overhead
$
1.45
Fixed manufacturing overhead
$
12,000
Sales commissions
$
1.00
Variable administrative expense
$
0.55
Fixed selling and administrative expense
$
4,000
The incremental manufacturing cost that the company will incur if it increases production from
4,000 to 4,001 units is closest to:
A) $16.00
B) $14.05
C) $10.45
D) $13.45
Direct materials
$
6.20
Direct labor
2.80
Variable manufacturing overhead
1.45
$
10.45
202) Pedregon Corporation has provided the following information:
Cost per
Unit
Cost per Period
Direct materials
$
6.35
Direct labor
$
3.75
Variable manufacturing overhead
$
1.50
Fixed manufacturing overhead
$
15,000
Sales commissions
$
0.50
Variable administrative expense
$
0.55
Fixed selling and administrative expense
$
4,500
If 4,000 units are sold, the variable cost per unit sold is closest to:
A) $16.55
B) $11.60
C) $12.65
D) $14.60
Direct materials
$
6.35
Direct labor
3.75
Variable manufacturing overhead
1.50
Sales commissions
0.50
Variable administrative expense
0.55
Variable cost per unit sold
$
12.65
203) Pedregon Corporation has provided the following information:
Cost per
Unit
Cost per Period
Direct materials
$
6.35
Direct labor
$
3.75
Variable manufacturing overhead
$
1.50
Fixed manufacturing overhead
$
15,000
Sales commissions
$
0.50
Variable administrative expense
$
0.55
Fixed selling and administrative expense
$
4,500
If 4,000 units are sold, the total variable cost is closest to:
A) $58,400
B) $66,200
C) $50,600
D) $46,400
Direct materials
$
6.35
Direct labor
3.75
Variable manufacturing overhead
1.50
Sales commissions
0.50
Variable administrative expense
0.55
Variable cost per unit sold
$
12.65
Variable cost per unit sold (a)
$
12.65
Number of units sold (b)
4,000
Total variable costs (a) × (b)
$
50,600
204) Pedregon Corporation has provided the following information:
Cost per
Unit
Cost per Period
Direct materials
$
6.35
Direct labor
$
3.75
Variable manufacturing overhead
$
1.50
Fixed manufacturing overhead
$
15,000
Sales commissions
$
0.50
Variable administrative expense
$
0.55
Fixed selling and administrative expense
$
4,500
If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:
A) $21,000
B) $14,000
C) $28,000
D) $17,500
Total variable manufacturing overhead cost
($1.50 per unit x 4,000 units)
$
6,000
Total fixed manufacturing overhead cost
15,000
Total manufacturing overhead cost (a)
$
21,000
205) Pedregon Corporation has provided the following information:
Cost per
Unit
Cost per Period
Direct materials
$
6.35
Direct labor
$
3.75
Variable manufacturing overhead
$
1.50
Fixed manufacturing overhead
$
15,000
Sales commissions
$
0.50
Variable administrative expense
$
0.55
Fixed selling and administrative expense
$
4,500
If the selling price is $20.60 per unit, the contribution margin per unit sold is closest to:
A) $4.05
B) $6.00
C) $7.95
D) $10.50
Selling price per unit
$
20.60
Direct materials
6.35
Direct labor
3.75
Variable manufacturing overhead
1.50
Sales commissions
0.50
Variable administrative expense
0.55
Variable cost per unit sold
12.65
Contribution margin per unit
$
206) Pedregon Corporation has provided the following information:
Direct materials
$
51,000
Direct labor cost
$
54,000
Manufacturing overhead
$
82,000
Selling expense
$
18,000
Administrative expense
$
42,000
The conversion cost for November was:
A) $187,000
B) $112,000
C) $136,000
D) $140,000
207) Pedregon Corporation has provided the following information:
Direct materials
$
51,000
Direct labor cost
$
54,000
Manufacturing overhead
$
82,000
Selling expense
$
18,000
Administrative expense
$
42,000
The prime cost for November was:
A) $136,000
B) $60,000
C) $105,000
D) $112,000
208) Management of Mcgibboney Corporation has asked your help as an intern in preparing some
key reports for November. Direct materials cost was $42,000, direct labor cost was $25,000, and
manufacturing overhead was $62,000. Selling expense was $21,000 and administrative expense
was $38,000.
The conversion cost for November was:
A) $116,000
B) $79,000
C) $87,000
D) $129,000
209) Management of Mcgibboney Corporation has asked your help as an intern in preparing some
key reports for November. Direct materials cost was $42,000, direct labor cost was $25,000, and
manufacturing overhead was $62,000. Selling expense was $21,000 and administrative expense
was $38,000.
The prime cost for November was:
A) $79,000
B) $59,000
C) $67,000
D) $87,000
210) Barredo Corporation’s relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$
6.60
Direct labor
$
3.65
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
2.80
Fixed selling expense
$
0.70
Fixed administrative expense
$
0.40
Sales commissions
$
0.50
Variable administrative expense
$
0.45
If 4,000 units are sold, the variable cost per unit sold is closest to:
A) $16.75
B) $12.85
C) $11.90
D) $14.70
Direct materials
$
Direct labor
Variable manufacturing overhead
Sales commissions
Variable administrative expense
Variable cost per unit sold
$
211) Barredo Corporation’s relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$
6.60
Direct labor
$
3.65
Variable manufacturing overhead
$
1.65
Fixed manufacturing overhead
$
2.80
Fixed selling expense
$
0.70
Fixed administrative expense
$
0.40
Sales commissions
$
0.50
Variable administrative expense
$
0.45
If 4,000 units are sold, the total variable cost is closest to:
A) $67,000
B) $47,600
C) $51,400
D) $58,800
Direct materials
$
Direct labor
Variable manufacturing overhead
Sales commissions
Variable administrative expense
Variable cost per unit sold
$
Variable cost per unit sold (a)
$
Number of units sold (b)
Total variable costs (a) × (b)
$
212) Varela Corporation’s relevant range of activity is 2,000 units to 6,000 units. When it produces
and sells 4,000 units, its average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$
5.95
Direct labor
$
3.30
Variable manufacturing overhead
$
1.60
Fixed manufacturing overhead
$
3.00
Fixed selling expense
$
0.50
Fixed administrative expense
$
0.40
Sales commissions
$
1.50
Variable administrative expense
$
0.50
For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is
closest to:
A) $43,400
B) $55,400
C) $59,400
D) $12,000
Direct materials
$
Direct labor
Variable manufacturing overhead
Variable manufacturing cost per unit
$
Total variable manufacturing cost
$
($10.85 per unit × 4,000 units produced)
Total fixed manufacturing overhead cost
($3.00 per unit × 4,000 units produced)
Total product (manufacturing) cost
$
213) Varela Corporation’s relevant range of activity is 2,000 units to 6,000 units. When it produces
and sells 4,000 units, its average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$
5.95
Direct labor
$
3.30
Variable manufacturing overhead
$
1.60
Fixed manufacturing overhead
$
3.00
Fixed selling expense
$
0.50
Fixed administrative expense
$
0.40
Sales commissions
$
1.50
Variable administrative expense
$
0.50
For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is
closest to:
A) $7,700
B) $11,600
C) $3,600
D) $8,000
Sales commissions
Variable administrative expense
Variable selling and administrative expense per unit
$
Total variable selling and administrative expense
($2.00 per unit x 4,000 units sold)
$
Total fixed selling and administrative expense
($0.50 per unit x 4,000 units + $0.40 per unit x 4,000 units)
Total period (nonmanufacturing) cost
$