Exam 2: Managerial Cost Concepts and Cost Behaviour Analysis

Use the following information for questions . \# Machine Maintenance Jan 200 \ 415 Feb 175 \ 385 Mar 290 \ 520 Apr 300 \ 534 May 185 \ 403 Jun 265 \ 490 Jul 160 \ 372 Auq 320 \ 564 -What is the equation of the line using the high-low method and this data?

Which of the following could be considered either a product or a period cost depending on the purpose?

Outside of the relevant range, which of the following outcomes is unlikely?

Hardigan Manufacturing Company reported the following year-end information: beginning work in process inventory, $80,000; cost of goods manufactured, $980,000; beginning finished goods inventory, $50,000; ending work in process inventory, $70,000; and ending finished goods inventory, $40,000.How much is Haridgan's cost of goods sold for the year?

Critical inputs in using the high-low method include all of the following EXCEPT

What amount is given by the sum of the cost of the beginning work in process and the total manufacturing costs for the current year?

Fixed costs may jump (rather than remaining fixed)at incremental levels of activity.

Use the following information for questions Caltreck Manufacturing Inc.'s accounting records reflect the following inventories: Dec. 31,2015 Dec. 31,2016 Raw materials inventory \ 100,000 \ 80,000 Work in process inventory 130,000 145,000 Finished goods inventory 125,000 115,000 During 2016, Caltreck purchased $950,000 of raw materials, incurred direct labour costs of $125,000, and incurred manufacturing overhead totalling $160,000. -How much is total manufacturing costs incurred during 2016 for Caltreck?

Which one of the following is indirect labour considered?

Cost behaviour analysis is the study of how total costs concurrently are affected by changes in the level of business activity.

How does a manufacturing company report cost of goods manufactured?

To be useful to management accountants for planning and predictive purposes, mixed costs

What amount would you find on financial statements of merchandising companies that is referred to as finished goods inventory for a manufacturing company?

Which one of the following is the correct calculation of cost of goods sold for a manufacturing company?

What occurs when inventoriable costs are removed from the balance sheet?

Mixed costs

Indirect materials and indirect labour are both period costs.

When are period costs recorded on the income statement?

Fixed costs appear to vary on a per-unit basis but are fixed in total.

Zirk, Inc.incurred cost of goods manufactured totalling $700,000, manufacturing overhead of $320,000, and direct materials totalling $40,000.How much is the amount of direct labour?