Sandusky Corporation has the following costs for 1,000 units: $\begin{array}{lrr}&\text { Total Cost } & \text { Cost per Unit }\\\hline \text { Direct materials } & \$ 1,500 & \$ 1.50 \\ \text { Direct labor } & 7,500 & 7.50 \\ \text { Depreciation on building } & 30,000 & 30.00 \end{array}$ What is the total cost of direct materials for 100 units?

A) $1.50 B) $3.00 C) $150.00 D) $225.00 A) $1.50 B) $3.00 C) $150.00 D) $225.00

The following computer printout estimated overhead costs using multiple regression: \[\begin{array} { l c c c c } \text { Parameter } & \text { Estimate } & \begin{array} { c } \text { tfor H(0) } \\ \text { Interameter } = \mathbf { 0 } \end{array} & \underline { \mathbf { P r } > \mathbf { t } } & \begin{array} { c } \text { Std. error } \\ \text { of parameter } \end{array} \\ \text { Intercept } & 1000 & 1.96 & 0.0250 & 510.204 \\ \text { Setup hours } & 25 & 81.96 & 0.0001 & 0.305 \\ \text { \# of parts } & 100 & 9.50 & 0.0001 & 10.527 \end{array}\] $\begin{array}{ll} \text { R Square (R2) } & 0.94 \\ \text { Standard Error (Se) } & 75.00 \\ \text { Observations } & 160 \end{array}$ During the year the company used 1,000 setup hours and 500 parts. The degrees of freedom for the model is

A) 158 B) 157 C) 159 D) 160 A) 158 B) 157 C) 159 D) 160

The following computer printout estimated overhead costs using multiple regression: \[\begin{array} { l c c c c } \text { Parameter } & \text { Estimate } & \begin{array} { c } \text { tfor H(0) } \\ \text { Interameter } = \mathbf { 0 } \end{array} & \underline { \mathbf { P r } > \mathbf { t } } & \begin{array} { c } \text { Std. error } \\ \text { of parameter } \end{array} \\ \text { Intercept } & 1000 & 1.96 & 0.0250 & 510.204 \\ \text { Setup hours } & 25 & 81.96 & 0.0001 & 0.305 \\ \text { \# of parts } & 100 & 9.50 & 0.0001 & 10.527 \end{array}\] $\begin{array}{ll} \text { R Square (R2) } & 0.94 \\ \text { Standard Error (Se) } & 75.00 \\ \text { Observations } & 160 \end{array}$ During the year the company used 1,000 setup hours and 500 parts. The model being measured is

A) Overhead = 1,000 + 25(Setup hours) + 100(# of parts) B) Overhead = 510 + 0.305(Setup hours) + 10.527(# of parts) C) Overhead = 0.98 + 40.98(Setup hours) + 4.865(# of parts) D) Overhead = 1,000 + 25(Setup hours) A) Overhead = 1,000 + 25(Setup hours) + 100(# of parts) B) Overhead = 510 + 0.305(Setup hours) + 10.527(# of parts) C) Overhead = 0.98 + 40.98(Setup hours) + 4.865(# of parts) D) Overhead = 1,000 + 25(Setup hours)

The following information is available for electricity costs for the last six months of the year: \[\begin{array} { c c c } \text { Month } & \text { Production Volume } & \text { Electricity Costs } \\\hline \text { February } & 1,000 & \$ 1,700 \\ \text { March } & 2,200 & 4,000 \\ \text { April } & 2,000 & 3,200 \\ \text { May } & 1,630 & 3,100 \\ \text { June } & 1,240 & 2,600 \\ \text { July } & 1,340 & 3,020 \end{array}\] Using the high-low method, what is the estimated variable cost per unit of production? (Round your answer to two decimal places.)

A) 1.75 B) 1.92 C) 1.53 D) 1.37 A) 1.75 B) 1.92 C) 1.53 D) 1.37

Exam 3: Cost Behavior

Sandusky Corporation has the following costs for 1,000 units: Total Cost Cost per Unit Direct materials \ 1,500 \ 1.50 Direct labor 7,500 7.50 Depreciation on building 30,000 30.00 What is the total cost of direct materials for 100 units?

(Multiple Choice)

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Question 161

_________ analysis focuses on how costs react to changes in activity levels.

(Short Answer)

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Question 162

The following computer printout estimated overhead costs using multiple regression: Parameter Estimate tfor H(0) Interameter = Std. error of parameter Intercept 1000 1.96 0.0250 510.204 Setup hours 25 81.96 0.0001 0.305 \# of parts 100 9.50 0.0001 10.527 R Square (R2) 0.94 Standard Error (Se) 75.00 Observations 160 During the year the company used 1,000 setup hours and 500 parts. The degrees of freedom for the model is

(Multiple Choice)

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Question 163

The following computer printout estimated overhead costs using multiple regression: Parameter Estimate tfor H(0) Interameter = Std. error of parameter Intercept 1000 1.96 0.0250 510.204 Setup hours 25 81.96 0.0001 0.305 \# of parts 100 9.50 0.0001 10.527 R Square (R2) 0.94 Standard Error (Se) 75.00 Observations 160 During the year the company used 1,000 setup hours and 500 parts. The model being measured is

(Multiple Choice)

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Question 164

Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost is $2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units. Develop a cost equation for the total machine maintenance cost.

(Multiple Choice)

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Question 165

Which of the following is an advantage of using the scatterplot method over the high-low method to estimate costs?

(Multiple Choice)

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Question 166

What is the difference between a correlation equal to −1 and a correlation equal to +1?

(Multiple Choice)

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Question 167

Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost is $2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units. Compute the total machine maintenance cost for last year.

(Multiple Choice)

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Question 168

In the method of least squares, each single measure of closeness is first squared. Squaring the deviations avoids problems caused by a mix of positive and negative numbers.

(True/False)

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Question 169

The efficient level of activity performance is called

(Multiple Choice)

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Question 170

In the formula Y = F + VX, V refers to the

(Multiple Choice)

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Question 171

Which of the following is an example of a discretionary fixed expense?

(Multiple Choice)

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Question 172

Which of the following statements is TRUE about fixed and variable costs?

(Multiple Choice)

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Question 173

The following information is available for electricity costs for the last six months of the year: Month Production Volume Electricity Costs February 1,000 \ 1,700 March 2,200 4,000 April 2,000 3,200 May 1,630 3,100 June 1,240 2,600 July 1,340 3,020 Using the high-low method, what is the estimated variable cost per unit of production? (Round your answer to two decimal places.)

(Multiple Choice)

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Question 174

Knowledge of cost and activity-level relationship is used by experienced _________.

(Short Answer)

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Question 175

The percentage of variability in the dependent variable explained by an independent variable (i.e. measure of activity output) is called the coefficient of correlation.

(True/False)

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Question 176

A nursing home requires one nurse for each six patients. This is an example of a

(Multiple Choice)

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Question 177

In the formula Y = F + VX, Y refers to the

(Multiple Choice)

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Question 178

The cumulative average-time learning curve model states that the cumulative average time per unit increases by a constant percentage.

(True/False)

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Question 179

What is the difference between a correlation equal to −1 and a correlation equal to 0?

(Multiple Choice)

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Question 180

Sandusky Corporation has the following costs for 1,000 units: Total Cost Cost per Unit Direct materials \ 1,500 \ 1.50 Direct labor 7,500 7.50 Depreciation on building 30,000 30.00 What is the total cost of direct materials for 100 units?

_________ analysis focuses on how costs react to changes in activity levels.

Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost is $2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units. Develop a cost equation for the total machine maintenance cost.

Which of the following is an advantage of using the scatterplot method over the high-low method to estimate costs?

What is the difference between a correlation equal to −1 and a correlation equal to +1?

Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost is $2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units. Compute the total machine maintenance cost for last year.

In the method of least squares, each single measure of closeness is first squared. Squaring the deviations avoids problems caused by a mix of positive and negative numbers.

The efficient level of activity performance is called

In the formula Y = F + VX, V refers to the

Which of the following is an example of a discretionary fixed expense?

Which of the following statements is TRUE about fixed and variable costs?

Knowledge of cost and activity-level relationship is used by experienced _________.

The percentage of variability in the dependent variable explained by an independent variable (i.e. measure of activity output) is called the coefficient of correlation.

A nursing home requires one nurse for each six patients. This is an example of a

In the formula Y = F + VX, Y refers to the

The cumulative average-time learning curve model states that the cumulative average time per unit increases by a constant percentage.

What is the difference between a correlation equal to −1 and a correlation equal to 0?

Introduction to Cost Management

Basic Cost Management Concepts

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

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