Question 1

An example of a committed fixed cost would be:

Accepted Answer

A)  taxes on real estate. 
B)  management development programs. 
C)  public relations costs. 
D)  advertising programs. 
A)  taxes on real estate. 
B)  management development programs. 
C)  public relations costs. 
D)  advertising programs.

Question 2

Parlavecchio 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:
   Required:a. For financial reporting purposes, what is the total amount of product costs incurred to make 4,000 units?b. For financial reporting purposes, what is the total amount of period costs incurred to sell 4,000 units?c. If 5,000 units are sold, what is the variable cost per unit sold?d. If 5,000 units are sold, what is the total amount of variable costs related to the units sold?e. If 5,000 units are produced, what is the average fixed manufacturing cost per unit produced?f. If 5,000 units are produced, what is the total amount of fixed manufacturing cost incurred?g. If 5,000 units are produced, what is the total amount of manufacturing overhead cost incurred? What is this total amount expressed on a per unit basis?

Accepted Answer

a.
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Question 3

Timchak Corporation reports that at an activity level of 9,900 units, its total variable cost is $919,116 and its total fixed cost is $259,974. What would be the total cost, both fixed and variable, at an activity level of 10,100 units? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)

Accepted Answer

A)  $1,197,658 
B)  $1,191,000 
C)  $1,179,090 
D)  $1,202,910 
A)  $1,197,658 
B)  $1,191,000 
C)  $1,179,090 
D)  $1,202,910

Question 4

Dake 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:   For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

Accepted Answer

A)  $7,800 
B)  $8,100 
C)  $4,400 
D)  $12,200 
A)  $7,800 
B)  $8,100 
C)  $4,400 
D)  $12,200

Question 5

The cost of shipping parts from a supplier is considered a period cost.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  $292,000 
B)  $294,000 
C)  $50,000 
D)  $586,000 
A)  $292,000 
B)  $294,000 
C)  $50,000 
D)  $586,000

Question 7

Lagle Corporation has provided the following information:   For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

Accepted Answer

A)  $13,000 
B)  $8,000 
C)  $5,000 
D)  $7,600 
A)  $13,000 
B)  $8,000 
C)  $5,000 
D)  $7,600

Question 8

The relative proportion of variable, fixed, and mixed costs in a company is known as the company's:

Accepted Answer

A)  contribution margin. 
B)  cost structure. 
C)  product mix. 
D)  relevant range. 
A)  contribution margin. 
B)  cost structure. 
C)  product mix. 
D)  relevant range.

Question 9

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

Accepted Answer

A)  a product cost that is fixed with respect to the company's output. 
B)  a period cost that is fixed with respect to the company's output. 
C)  a product cost that is variable with respect to the company's output. 
D)  a period cost that is variable with respect to the company's output. 
A)  a product cost that is fixed with respect to the company's output. 
B)  a period cost that is fixed with respect to the company's output. 
C)  a product cost that is variable with respect to the company's output. 
D)  a period cost that is variable with respect to the company's output.

Question 10

The following costs are all examples of committed fixed costs: depreciation on buildings, salaries of highly trained engineers, real estate taxes, and insurance expenses.

Accepted Answer

A) True 
 B)False

Question 11

Oerther Corporation reports that at an activity level of 5,000 units, its total variable cost is $131,750 and its total fixed cost is $31,200.What would be the average fixed cost per unit at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.

Accepted Answer

A)  $6.24 
B)  $6.00 
C)  $14.94 
D)  $32.59 
A)  $6.24 
B)  $6.00 
C)  $14.94 
D)  $32.59

Question 12

Adens 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 sold, the variable cost per unit sold is closest to:

Accepted Answer

A)  $13.00 
B)  $10.60 
C)  $12.10 
D)  $15.40 
A)  $13.00 
B)  $10.60 
C)  $12.10 
D)  $15.40

Question 13

Hinrichs Corporation reports that at an activity level of 2,400 units, its total variable cost is $174,504 and its total fixed cost is $55,080.Required:
For the activity level of 2,700 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range.

Accepted Answer

Variable cost = $174

Question 14

The following costs were incurred in May:   Conversion costs during the month totaled:

Accepted Answer

A)  $60,000 
B)  $66,900 
C)  $161,800 
D)  $79,300 
A)  $60,000 
B)  $66,900 
C)  $161,800 
D)  $79,300

Question 15

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

Accepted Answer

A)  $58,400 
B)  $66,200 
C)  $50,600 
D)  $46,400 
A)  $58,400 
B)  $66,200 
C)  $50,600 
D)  $46,400

Question 16

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.Rent on the administrative office space is:

Accepted Answer

A)  a variable cost 
B)  an opportunity cost 
C)  a period cost 
D)  a product cost 
A)  a variable cost 
B)  an opportunity cost 
C)  a period cost 
D)  a product cost

Question 17

Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,800 units, its average costs per unit are as follows:
   Required:a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,800 units?b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,800 units?c. If 6,800 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.)d. If 6,800 units are sold, what is the total amount of variable costs related to the units sold?e. If 6,800 units are produced, what is the average fixed manufacturing cost per unit produced? (Round "Per unit" answer to 2 decimal places.)f. If 6,800 units are produced, what is the total amount of fixed manufacturing cost incurred?g. If 6,800 units are produced, what is the total amount of manufacturing overhead cost incurred? What is this total amount expressed on a per unit basis? (Round "Per unit" answer to 2 decimal places.)h. If the selling price is $23.20 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.)i. If 4,800 units are produced, what is the total amount of direct manufacturing cost incurred?j. If 4,800 units are produced, what is the total amount of indirect manufacturing cost incurred?k. What incremental manufacturing cost will the company incur if it increases production from 5,800 to 5,801 units? (Round "Per unit" answer to 2 decimal places.)

Accepted Answer

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Question 18

ErkkilaIncorporated reports that at an activity level of 2,100 machine-hours in a month, its total variable inspection cost is $69,846 and its total fixed inspection cost is $9,072.What would be the average fixed inspection cost per unit at an activity level of 2,400 machine-hours in a month? Assume that this level of activity is within the relevant range.

Accepted Answer

A)  $37.58 
B)  $4.32 
C)  $15.23 
D)  $3.78 
A)  $37.58 
B)  $4.32 
C)  $15.23 
D)  $3.78

Question 19

During the month of May, direct labor cost totaled $9,240 and direct labor cost was 30% of prime cost. If total manufacturing costs during May were $80,100, the manufacturing overhead was:

Accepted Answer

A)  $21,560 
B)  $30,800 
C)  $70,860 
D)  $49,300 
A)  $21,560 
B)  $30,800 
C)  $70,860 
D)  $49,300

Question 20

ErkkilaIncorporated reports that at an activity level of 2,100 machine-hours in a month, its total variable inspection cost is $69,846 and its total fixed inspection cost is $9,072.What would be the total variable inspection cost at an activity level of 2,400 machine-hours in a month? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)

Accepted Answer

A)  $78,918 
B)  $69,846 
C)  $79,824 
D)  $10,368 
A)  $78,918 
B)  $69,846 
C)  $79,824 
D)  $10,368

An example of a committed fixed cost would be:

Dake 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: For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

The cost of shipping parts from a supplier is considered a period cost.

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

Lagle Corporation has provided the following information: For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

The relative proportion of variable, fixed, and mixed costs in a company is known as the company's:

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

The following costs are all examples of committed fixed costs: depreciation on buildings, salaries of highly trained engineers, real estate taxes, and insurance expenses.

Oerther Corporation reports that at an activity level of 5,000 units, its total variable cost is $131,750 and its total fixed cost is $31,200.What would be the average fixed cost per unit at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.

Adens 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 sold, the variable cost per unit sold is closest to:

The following costs were incurred in May: Conversion costs during the month totaled:

Pedregon Corporation has provided the following information: If 4,000 units are sold, the total variable cost 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.Rent on the administrative office space is:

During the month of May, direct labor cost totaled $9,240 and direct labor cost was 30% of prime cost. If total manufacturing costs during May were $80,100, the manufacturing overhead was:

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Responsibility Accounting Systems

Strategic Performance Measurement

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 1: Managerial Accounting and Cost Concepts

An example of a committed fixed cost would be:

Dake 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: For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

The cost of shipping parts from a supplier is considered a period cost.

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

Lagle Corporation has provided the following information: For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

The relative proportion of variable, fixed, and mixed costs in a company is known as the company's:

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

The following costs are all examples of committed fixed costs: depreciation on buildings, salaries of highly trained engineers, real estate taxes, and insurance expenses.

Oerther Corporation reports that at an activity level of 5,000 units, its total variable cost is $131,750 and its total fixed cost is $31,200.What would be the average fixed cost per unit at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.

Adens 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 sold, the variable cost per unit sold is closest to:

The following costs were incurred in May: Conversion costs during the month totaled:

Pedregon Corporation has provided the following information: If 4,000 units are sold, the total variable cost 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.Rent on the administrative office space is:

During the month of May, direct labor cost totaled $9,240 and direct labor cost was 30% of prime cost. If total manufacturing costs during May were $80,100, the manufacturing overhead was:

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Responsibility Accounting Systems

Strategic Performance Measurement

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters