Exam 1: Managerial Accounting and Cost Concepts

Morrisroe Corporation has provided the following information: Required:a. If the selling price is $25.90 per unit, what is the contribution margin per unit sold?b. What incremental manufacturing cost will the company incur if it increases production from 5,000 to 5,001 units?

Within the relevant range, a difference between variable costs and fixed costs is:

Pedregon Corporation has provided the following information: If the selling price is $20.60 per unit, the contribution margin per unit sold is closest to:

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 total variable cost is closest to:

In a traditional format income statement for a merchandising company, cost of goods sold is a variable cost that is included in the "Variable expenses" portion of the income statement.

Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: What is the total of the conversion costs above?

At a sales volume of 38,000 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $752,400.To the nearest whole dollar, what should be the total sales commissions at a sales volume of 34,300 units? (Assume that this sales volume is within the relevant range.) (Round intermediate calculations to 2 decimal places.)

The University Store, Incorporated is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below: On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed.The contribution margin for the University Store for the first quarter is:

Bowering Corporation has provided the following information: For financial reporting purposes, the total amount of product costs incurred to make 9,000 units is closest to:

In the standard cost formula Y = a + bX, what does the "X" represent?

Dake Corporation's relevant range of activity is 3,800 units to 9,000 units. When it produces and sells 6,400 units, its average costs per unit are as follows: For financial reporting purposes, the total amount of product costs incurred to make 6,400 units is closest to:

At a sales volume of 40,000 units, Lonnie Company's total fixed costs are $40,000 and total variable costs are $60,000. The relevant range is 30,000 to 50,000 units.If Lonnie were to sell 42,000 units, the total expected cost would be:

At a sales volume of 40,000 units, Lonnie Company's total fixed costs are $40,000 and total variable costs are $60,000. The relevant range is 30,000 to 50,000 units.If Lonnie were to sell 50,000 units, the total expected cost per unit would be: (Round intermediate calculations to 2 decimal places.)

A number of costs are listed below. Required: For each item above, indicate whether the cost is direct or indirect with respect to the cost object listed next to it.

Kesterson Corporation has provided the following information: If the selling price is $21.90 per unit, the contribution margin per unit sold is closest to:

Lagle Corporation has provided the following information: If 5,000 units are sold, the total variable cost is closest to:

Administrative costs are indirect costs.

A number of costs and measures of activity are listed below. Required: For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it.

Marquess Corporation has provided the following partial listing of costs incurred during May: Required: a. What is the total amount of product cost listed above? Show your work. b. What is the total amount of period cost listed above? Show your work.

The three cost elements ordinarily included in product costs are direct materials, direct labor, and manufacturing overhead.