Exam 1: Managerial Accounting and Cost Concepts

Delongis Corporation, a merchandising company, reported the following results for June: Cost of goods sold is a variable cost in this company. The contribution margin for June is:

In a contribution format income statement for a merchandising company, the cost of goods sold reports the product costs attached to the merchandise sold during the period.

An example of a committed fixed cost is:

Schwiesow Corporation has provided the following information: If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:

A cost incurred in the past that is not relevant to any current decision is classified as a(n):

Wessner Corporation has provided the following information: If the selling price is $25.00 per unit, the contribution margin per unit sold is closest to:

The variable cost per unit depends on how many units are produced.

At a sales volume of 38,000 units, Tirri Corporation's property taxes (a cost that is fixed with respect to sales volume) total $733,400. To the nearest whole cent, what should be the average property tax per unit at a sales volume of 37,300 units? (Assume that this sales volume is within the relevant range.)

An income statement for Sam's Bookstore for the first quarter of the year is presented below: On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed. The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:

Prime cost consists of:

Depreciation on a personal computer used in the marketing department of a manufacturing company would be classified as:

Pedregon Corporation has provided the following information: If 4,000 units are sold, the variable cost per unit sold is closest to:

Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device. Property taxes on the building that will be purchased to house the manufacturing facility are:

A partial listing of costs incurred during March at Febbo Corporation appears below: The total of the product costs listed above for March is:

Dobosh Corporation has provided the following information: Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 9,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 9,000 units? c. If 10,000 units are sold, what is the variable cost per unit sold? d. If 10,000 units are sold, what is the total amount of variable costs related to the units sold? e. If 10,000 units are produced, what is the total amount of manufacturing overhead cost incurred? f. If the selling price is $21.60 per unit, what is the contribution margin per unit sold? g. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred? h. If 8,000 units are produced, what is the total amount of indirect manufacturing costs incurred? i. What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units?

Mccaskell 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: If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Given the cost formula Y = $23,000 + $8X, total cost at an activity level of 7,000 units would be:

Wofril Corporation uses the cost formula Y = $5,300 + $0.60X for the maintenance cost, where X is machine-hours. The August budget is based on 8,000 hours of planned machine time. Maintenance cost expected to be incurred during August is:

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: If 5,000 units are produced, the average fixed manufacturing cost per unit produced is closest to:

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: If 4,000 units are sold, the variable cost per unit sold is closest to: