Chapter 02 – Managerial Accounting and Cost Concepts
79. Given the cost formula Y = $15,000 + $5X, total cost at an activity level of 8,000 units
would be:
Chapter 02 – Managerial Accounting and Cost Concepts
80. At a volume of 10,000 units, Company P incurs $30,000 in factory overhead costs,
including $10,000 in fixed costs. Assuming that this activity is within the relevant range, if
volume increases to 12,000 units, Company P would expect to incur total factory overhead
costs of:
Chapter 02 – Managerial Accounting and Cost Concepts
81. At an activity level of 4,400 units in a month, Goldbach Corporation’s total variable
maintenance and repair cost is $313,632 and its total fixed maintenance and repair cost is
$93,104. What would be the total maintenance and repair cost, both fixed and variable, at an
activity level of 4,600 units in a month? Assume that this level of activity is within the
relevant range.
Chapter 02 – Managerial Accounting and Cost Concepts
82. Supply costs at Lattea Corporation’s chain of gyms are listed below:
Management believes that supply cost is a mixed cost that depends on client-visits. Using the
high-low method to estimate the variable and fixed components of this cost, those estimates
would be closest to:
Chapter 02 – Managerial Accounting and Cost Concepts
83. Electrical costs at one of Vanartsdalen Corporation’s factories are listed below:
Management believes that electrical cost is a mixed cost that depends on machine-hours.
Using the high-low method to estimate the variable and fixed components of this cost, these
estimates would be closest to:
Chapter 02 – Managerial Accounting and Cost Concepts
84. A soft drink bottler incurred the following plant utility costs: 1,800 units bottled with
utility costs of $5,750, and 1,500 units bottled with utility costs of $5,200. What is the
variable cost per unit bottled (Use the High-low method. Round to the nearest cent.)
Chapter 02 – Managerial Accounting and Cost Concepts
85. The following data pertains to activity and maintenance costs for two recent years:
Using the high-low method, the cost formula for maintenance would be:
Chapter 02 – Managerial Accounting and Cost Concepts
86. The following data pertains to activity and utility costs for two recent years:
Using the high-low method, the cost formula for utilities is:
Chapter 02 – Managerial Accounting and Cost Concepts
87. Maintenance costs at a Tierce Corporation factory are listed below:
Management believes that maintenance cost is a mixed cost that depends on machine-hours.
Using the high-low method to estimate the variable and fixed components of this cost, these
estimates would be closest to:
Chapter 02 – Managerial Accounting and Cost Concepts
88. Buckeye Company has provided the following data for maintenance cost:
The best estimate of the cost formula for maintenance would be:
Chapter 02 – Managerial Accounting and Cost Concepts
89. Haar Inc. is a merchandising company. Last month the company’s cost of goods sold was
$61,000. The company’s beginning merchandise inventory was $11,000 and its ending
merchandise inventory was $21,000. What was the total amount of the company’s
merchandise purchases for the month?
90. Gabruk Inc. is a merchandising company. Last month the company’s merchandise
purchases totaled $88,000. The company’s beginning merchandise inventory was $15,000 and
its ending merchandise inventory was $13,000. What was the company’s cost of goods sold
for the month?
Chapter 02 – Managerial Accounting and Cost Concepts
A partial listing of costs incurred during December at Gagnier Corporation appears below:
91. The total of the period costs listed above for December is:
Chapter 02 – Managerial Accounting and Cost Concepts
92. The total of the manufacturing overhead costs listed above for December is:
93. The total of the product costs listed above for December is:
Chapter 02 – Managerial Accounting and Cost Concepts
A partial listing of costs incurred at Backes Corporation during November appears below:
94. The total of the manufacturing overhead costs listed above for November is:
Chapter 02 – Managerial Accounting and Cost Concepts
95. The total of the product costs listed above for November is:
96. The total of the period costs listed above for November is:
Chapter 02 – Managerial Accounting and Cost Concepts
Dickison Corporation reported the following data for the month of December:
97. The conversion cost for December was:
Chapter 02 – Managerial Accounting and Cost Concepts
98. The prime cost for December was:
99. The conversion cost for April was:
Chapter 02 – Managerial Accounting and Cost Concepts
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100. The prime cost for April was:
Callander 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 $151.60 per unit.
Chapter 02 – Managerial Accounting and Cost Concepts
101. The best estimate of the total monthly fixed cost is:
Chapter 02 – Managerial Accounting and Cost Concepts
102. The best estimate of the total variable cost per unit is: