Exam 1: Managerial Accounting and Cost Concepts

One full-time clerical worker is needed for every 750 accounts receivable. The total wages of the accounts receivable clerks is an example of a:

Prime cost is the sum of direct materials cost and direct labor cost.

Schwiesow Corporation has provided the following information: If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Learned Corporation has provided the following information: Required:a. For financial reporting purposes, what is the total amount of product costs incurred to make 8,500 units?b. For financial reporting purposes, what is the total amount of period costs incurred to sell 8,500 units?c. If the selling price is $22.90 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)d. If 9,500 units are produced, what is the total amount of direct manufacturing cost incurred?e. If 9,500 units are produced, what is the total amount of indirect manufacturing costs incurred?

Committed fixed costs represent organizational investments with a one-year planning horizon.

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: