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103. The best estimate of the total contribution margin when 6,300 units are sold is:
Babuca Corporation has provided the following production and total cost data for two levels
of monthly production volume. The company produces a single product.
Chapter 02 – Managerial Accounting and Cost Concepts
104. The best estimate of the total monthly fixed manufacturing cost is:
Chapter 02 – Managerial Accounting and Cost Concepts
105. The best estimate of the total variable manufacturing cost per unit is:
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106. The best estimate of the total cost to manufacture 6,300 units is closest to:
The following production and average cost data for two levels of monthly production volume
have been supplied by a company that produces a single product:
Chapter 02 – Managerial Accounting and Cost Concepts
107. The best estimate of the total monthly fixed manufacturing cost is:
Chapter 02 – Managerial Accounting and Cost Concepts
108. The best estimate of the total variable manufacturing cost per unit is:
Chapter 02 – Managerial Accounting and Cost Concepts
109. The best estimate of the total cost to manufacture 1,200 units is closest to:
110. What would be the average fixed inspection cost per unit at an activity level of 8,100
machine-hours in a month? Assume that this level of activity is within the relevant range.
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111. What would be the total variable inspection cost at an activity level of 8,100 machine-
hours in a month? Assume that this level of activity is within the relevant range.
At an activity level of 5,300 machine-hours in a month, Clyburn Corporation’s total variable
maintenance cost is $114,268 and its total fixed maintenance cost is $154,336.
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112. What would be the total variable maintenance cost at an activity level of 5,600 machine-
hours in a month? Assume that this level of activity is within the relevant range.
113. What would be the average fixed maintenance cost per unit at an activity level of 5,600
machine-hours in a month? Assume that this level of activity is within the relevant range.
Slappy 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
20,000 units, the lease cost was $482,000.
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114. To the nearest whole dollar, what should be the total lease cost at a sales volume of
16,900 units in a month? (Assume that this sales volume is within the relevant range.)
115. To the nearest whole cent, what should be the average lease cost per unit at a sales
volume of 19,200 units in a month? (Assume that this sales volume is within the relevant
range.)
At a sales volume of 35,000 units, Thoma Corporation’s sales commissions (a cost that is
variable with respect to sales volume) total $448,000.
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116. To the nearest whole dollar, what should be the total sales commissions at a sales volume
of 33,200 units? (Assume that this sales volume is within the relevant range.)
117. To the nearest whole cent, what should be the average sales commission per unit at a
sales volume of 36,800 units? (Assume that this sales volume is within the relevant range.)
At a sales volume of 27,000 units, Danielle Corporation’s property taxes (a cost that is fixed
with respect to sales volume) total $207,900.
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118. To the nearest whole dollar, what should be the total property taxes at a sales volume of
30,900 units? (Assume that this sales volume is within the relevant range.)
119. To the nearest whole cent, what should be the average property tax per unit at a sales
volume of 27,600 units? (Assume that this sales volume is within the relevant range.)
Chaffee 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 33,000 calls in a month, the costs of operating the helpline total $742,500.
Chapter 02 – Managerial Accounting and Cost Concepts
120. To the nearest whole dollar, what should be the total cost of operating the helpline costs
at a volume of 34,800 calls in a month? (Assume that this call volume is within the relevant
range.)
121. To the nearest whole cent, what should be the average cost of operating the helpline per
call at a volume of 36,100 calls in a month? (Assume that this call volume is within the
relevant range.)
Chapter 02 – Managerial Accounting and Cost Concepts
122. What would be the total variable cost at an activity level of 3,500 units? Assume that this
level of activity is within the relevant range.
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123. What would be the average fixed cost per unit at an activity level of 3,500 units? Assume
that this level of activity is within the relevant range.
Inspection costs at one of Krivanek Corporation’s factories are listed below:
Management believes that inspection cost is a mixed cost that depends on units produced.
Chapter 02 – Managerial Accounting and Cost Concepts
124. Using the high-low method, the estimate of the variable component of inspection cost
per unit produced is closest to:
Chapter 02 – Managerial Accounting and Cost Concepts
125. Using the high-low method, the estimate of the fixed component of inspection cost per
month is closest to:
Chapter 02 – Managerial Accounting and Cost Concepts
Glatt Inc., an escrow agent, has provided the following data concerning its office expenses:
Management believes that office expense is a mixed cost that depends on the number of
escrows completed. Note: Real estate purchases usually involve the services of an escrow
agent that holds funds and prepares documents to complete the transaction.
126. Using the high-low method, the estimate of the variable component of office expense per
escrow completed is closest to:
Chapter 02 – Managerial Accounting and Cost Concepts
127. Using the high-low method, the estimate of the fixed component of office expense per
month is closest to:
Chapter 02 – Managerial Accounting and Cost Concepts
Electrical costs at one of Reifel Corporation’s factories are listed below:
Management believes that electrical cost is a mixed cost that depends on machine-hours.
128. Using the high-low method, the estimate of the variable component of electrical cost per
machine-hour is closest to: