The following information applies to questions below Really Fast Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: $ \begin{array}{ccc}\text { Year } & \text { Miles } & \text { Operating Costs } \\ 2013 & 55,000 & \$ 195,000 \\ 2014 & 70,000 & \$ 210,000 \\ 2015 & 50,000 & \$ 180,000 \\ 2016 & 65,000 & \$ 205,000 \\ 2017 & 85,000 & \$ 225,150\end{array} $ -Using the high-low method, what is the cost estimate for fixed costs for 2018?

A) $100,000 B) $ 70,000 C) $115,500 D) $109,650 A) $100,000 B) $ 70,000 C) $115,500 D) $109,650 C

The following information relates to questions below Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred: $\begin{array}{|l|l|} \hline \text { Cost }& \text { Description} \\ \hline\$ 725,000 & \text {product development costs} \\ \hline \$ 475,000 & \text { materials handling costs} \\ \hline \$ 1,250,000 & \text {production line labor costs} \\ \hline \$ 450,000 & \text { production setup costs }\\ \hline\$ 250,000 & \text { power costs (for cooling beer and running equipment) }\\ \hline\$ 875,000 & \text {manufacturing facility management costs} \\ \hline \end{array}$ -What is the total manufacturing cost for the period?

A) $80,675 B) $10,625 C) $32,100 D) $17,250 A) $80,675 B) $10,625 C) $32,100 D) $17,250 D

The following information relates to questions below Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred: $\begin{array}{|l|l|} \hline \text { Cost }& \text { Description} \\ \hline\$ 725,000 & \text {product development costs} \\ \hline \$ 475,000 & \text { materials handling costs} \\ \hline \$ 1,250,000 & \text {production line labor costs} \\ \hline \$ 450,000 & \text { production setup costs }\\ \hline\$ 250,000 & \text { power costs (for cooling beer and running equipment) }\\ \hline\$ 875,000 & \text {manufacturing facility management costs} \\ \hline \end{array}$ -Using the manufacturing cost hierarchy, what is the total cost that would be classified as batch-level activity costs?

A) $ 450,000 B) $ 350,000 C) $ 600,000 D) $ 625,000 A) $ 450,000 B) $ 350,000 C) $ 600,000 D) $ 625,000

The following information applies to questions below Really Fast Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: $ \begin{array}{ccc}\text { Year } & \text { Miles } & \text { Operating Costs } \\ 2013 & 55,000 & \$ 195,000 \\ 2014 & 70,000 & \$ 210,000 \\ 2015 & 50,000 & \$ 180,000 \\ 2016 & 65,000 & \$ 205,000 \\ 2017 & 85,000 & \$ 225,150\end{array} $ -Using the high-low method, what is the cost estimate for variable costs for 2018?

A) $1.29 B) $2.00 C) $1.60 D) $1.50 A) $1.29 B) $2.00 C) $1.60 D) $1.50

The following information relates to questions below Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred: $\begin{array}{|l|l|} \hline \text { Cost }& \text { Description} \\ \hline\$ 725,000 & \text {product development costs} \\ \hline \$ 475,000 & \text { materials handling costs} \\ \hline \$ 1,250,000 & \text {production line labor costs} \\ \hline \$ 450,000 & \text { production setup costs }\\ \hline\$ 250,000 & \text { power costs (for cooling beer and running equipment) }\\ \hline\$ 875,000 & \text {manufacturing facility management costs} \\ \hline \end{array}$ -What is the total manufacturing cost for inspections?

A) $1,100 B) $1,400 C) $ 900 D) $ 700 A) $1,100 B) $1,400 C) $ 900 D) $ 700

The following information applies to questions below The following data was input into a spreadsheet program to determine the Intercept, Slope and RS1U1P12 S1S1P0(RSQ) for Patient Days and Maintenance Costs for a local hospital: $\begin{array}{lcc} \text {Month }&\text { Patient Days \( (X) $ }& \text {Maintenance costs $ (Y) $}\\ \text {January} & 3,300 &\$ 4,450 \\ \text {February} & 4,050 &\$ 4,750 \\ \text {March }& 3,000 &\$4,200\\ \text {April }& 3,750 &\$4,600 \\ \text {May} & 4,150 &\$5,050\\ \text {June} & 4,500 &\$5,400 \\ \text {July} & 2,600 &\$4,400 \\ & & \\ \text {Intercept }&\$2,734 \\ \text {Slope} & \$0.541 \\ \text {RSQ} & 0.793 \end{array}\) -The estimated fixed maintenance cost for the hospital is:

A) $5,468 B) $2,734 C) $0.793 D) $0.541 A) $5,468 B) $2,734 C) $0.793 D) $0.541

The following information relates to questions below Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred: $\begin{array}{|l|l|} \hline \text { Cost }& \text { Description} \\ \hline\$ 725,000 & \text {product development costs} \\ \hline \$ 475,000 & \text { materials handling costs} \\ \hline \$ 1,250,000 & \text {production line labor costs} \\ \hline \$ 450,000 & \text { production setup costs }\\ \hline\$ 250,000 & \text { power costs (for cooling beer and running equipment) }\\ \hline\$ 875,000 & \text {manufacturing facility management costs} \\ \hline \end{array}$ -What is the per unit manufacturing cost for the period?

A) $806.75 B) $106.25 C) $321.00 D) $172.50 A) $806.75 B) $106.25 C) $321.00 D) $172.50

A) Any set of products that can use the same resources B) Products that create production bottlenecks C) Products that increase in value if sold as a package D) Two or more products simultaneously produced from a common set of inputs by a single process A) Any set of products that can use the same resources B) Products that create production bottlenecks C) Products that increase in value if sold as a package D) Two or more products simultaneously produced from a common set of inputs by a single process

The following information relates to questions below Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred: $\begin{array}{|l|l|} \hline \text { Cost }& \text { Description} \\ \hline\$ 725,000 & \text {product development costs} \\ \hline \$ 475,000 & \text { materials handling costs} \\ \hline \$ 1,250,000 & \text {production line labor costs} \\ \hline \$ 450,000 & \text { production setup costs }\\ \hline\$ 250,000 & \text { power costs (for cooling beer and running equipment) }\\ \hline\$ 875,000 & \text {manufacturing facility management costs} \\ \hline \end{array}$ -Using the manufacturing cost hierarchy, what is the total cost that would be classified as unit-level activity costs?

A) $ 425,000 B) $1,250,000 C) $1,975,000 D) $1,945,000 A) $ 425,000 B) $1,250,000 C) $1,975,000 D) $1,945,000

The following information relates to questions below Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred: $\begin{array}{|l|l|} \hline \text { Cost }& \text { Description} \\ \hline\$ 725,000 & \text {product development costs} \\ \hline \$ 475,000 & \text { materials handling costs} \\ \hline \$ 1,250,000 & \text {production line labor costs} \\ \hline \$ 450,000 & \text { production setup costs }\\ \hline\$ 250,000 & \text { power costs (for cooling beer and running equipment) }\\ \hline\$ 875,000 & \text {manufacturing facility management costs} \\ \hline \end{array}$ -Using the manufacturing cost hierarchy, what is the total cost that would be classified as facility-level activity costs?

A) $ 500,000 B) $1,750,000 C) $ 875,000 D) $2,000,000 A) $ 500,000 B) $1,750,000 C) $ 875,000 D) $2,000,000

The following information applies to questions below Really Fast Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: $ \begin{array}{ccc}\text { Year } & \text { Miles } & \text { Operating Costs } \\ 2013 & 55,000 & \$ 195,000 \\ 2014 & 70,000 & \$ 210,000 \\ 2015 & 50,000 & \$ 180,000 \\ 2016 & 65,000 & \$ 205,000 \\ 2017 & 85,000 & \$ 225,150\end{array} $ -What is the estimated total fixed cost per hour at a volume 8,000 hours?

A) $10.25 B) $28.00 C) $24.00 D) $37.60 A) $10.25 B) $28.00 C) $24.00 D) $37.60

The following information applies to questions below Really Fast Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: $ \begin{array}{ccc}\text { Year } & \text { Miles } & \text { Operating Costs } \\ 2013 & 55,000 & \$ 195,000 \\ 2014 & 70,000 & \$ 210,000 \\ 2015 & 50,000 & \$ 180,000 \\ 2016 & 65,000 & \$ 205,000 \\ 2017 & 85,000 & \$ 225,150\end{array} $ -What is the estimated total cost per hour at a volume of 8,000 hours?

A) $12.50 B) $14.25 C) $18.00 D) $15.25 A) $12.50 B) $14.25 C) $18.00 D) $15.25

Exam 5: Cost Estimation and Manufacturing Cost Classification

The following information applies to questions below Really Fast Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2013 55,000 \ 195,000 2014 70,000 \ 210,000 2015 50,000 \ 180,000 2016 65,000 \ 205,000 2017 85,000 \ 225,150 -Using the high-low method, what is the cost estimate for fixed costs for 2018?

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

C

Classify the total costs of each of the following as -Fire insurance on factory building

Free

(Multiple Choice)

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(41)

Question 2

Correct Answer:

Verified

B

The following information relates to questions below Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred: Cost Description \ 725,000 product development costs \ 475,000 materials handling costs \ 1,250,000 production line labor costs \ 450,000 production setup costs \ 250,000 power costs (for cooling beer and running equipment) \ 875,000 manufacturing facility management costs -What is the total manufacturing cost for the period?

Free

(Multiple Choice)

5.0/5

(37)

Question 3

Correct Answer:

Verified

D

The following information relates to questions below Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred: Cost Description \ 725,000 product development costs \ 475,000 materials handling costs \ 1,250,000 production line labor costs \ 450,000 production setup costs \ 250,000 power costs (for cooling beer and running equipment) \ 875,000 manufacturing facility management costs -Using the manufacturing cost hierarchy, what is the total cost that would be classified as batch-level activity costs?

(Multiple Choice)

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Question 4

The following information applies to questions below Really Fast Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2013 55,000 \ 195,000 2014 70,000 \ 210,000 2015 50,000 \ 180,000 2016 65,000 \ 205,000 2017 85,000 \ 225,150 -Using the high-low method, what is the cost estimate for variable costs for 2018?

(Multiple Choice)

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Question 5

The following information relates to questions below Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred: Cost Description \ 725,000 product development costs \ 475,000 materials handling costs \ 1,250,000 production line labor costs \ 450,000 production setup costs \ 250,000 power costs (for cooling beer and running equipment) \ 875,000 manufacturing facility management costs -What is the total manufacturing cost for inspections?

(Multiple Choice)

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Question 6

Classify the total costs of each of the following as -Wages of machine operator who is paid based on number of units produced on the machine

(Multiple Choice)

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Question 7

The cost of maintaining general facilities such as buildings and grounds would best be classified as what type of activity?

(Multiple Choice)

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Question 8

Classify the total costs of each of the following as -Overhead costs in the factory for incidental components such as small screws and rivets.

(Multiple Choice)

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Question 9

Classify the total costs of each of the following as -Electric power in a factory

(Multiple Choice)

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Question 10

Classify the total costs of each of the following as -Property taxes

(Multiple Choice)

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Question 11

The following information applies to questions below The following data was input into a spreadsheet program to determine the Intercept, Slope and R²(RSQ) for Patient Days and Maintenance Costs for a local hospital: Month Patient Days (X) Maintenance costs (Y) January 3,300 \ 4,450 February 4,050 \ 4,750 March 3,000 \4 ,200 April 3,750 \4 ,600 May 4,150 \5 ,050 June 4,500 \5 ,400 July 2,600 \4 ,400 Intercept \2 ,734 Slope \0 .541 RSQ 0.793 -The estimated fixed maintenance cost for the hospital is:

(Multiple Choice)

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Question 12

The following information relates to questions below Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred: Cost Description \ 725,000 product development costs \ 475,000 materials handling costs \ 1,250,000 production line labor costs \ 450,000 production setup costs \ 250,000 power costs (for cooling beer and running equipment) \ 875,000 manufacturing facility management costs -What is the per unit manufacturing cost for the period?

(Multiple Choice)

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Question 13

Joint products are:

(Multiple Choice)

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Question 14

Classify the total costs of each of the following as -Salaries of quality inspectors when each inspector can evaluate a maximum of 500 units per day

(Multiple Choice)

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Question 15

The following information relates to questions below Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred: Cost Description \ 725,000 product development costs \ 475,000 materials handling costs \ 1,250,000 production line labor costs \ 450,000 production setup costs \ 250,000 power costs (for cooling beer and running equipment) \ 875,000 manufacturing facility management costs -Using the manufacturing cost hierarchy, what is the total cost that would be classified as unit-level activity costs?

(Multiple Choice)

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Question 16

The following information relates to questions below Rock Bottom's Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities. During the past year, it has incurred: Cost Description \ 725,000 product development costs \ 475,000 materials handling costs \ 1,250,000 production line labor costs \ 450,000 production setup costs \ 250,000 power costs (for cooling beer and running equipment) \ 875,000 manufacturing facility management costs -Using the manufacturing cost hierarchy, what is the total cost that would be classified as facility-level activity costs?

(Multiple Choice)

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Question 17

The following information applies to questions below Really Fast Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2013 55,000 \ 195,000 2014 70,000 \ 210,000 2015 50,000 \ 180,000 2016 65,000 \ 205,000 2017 85,000 \ 225,150 -What is the estimated total fixed cost per hour at a volume 8,000 hours?

(Multiple Choice)

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Question 18

Classify the total costs of each of the following as -Keyboards purchased from a subcontract supplier in a computer assembly plant

(Multiple Choice)

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Question 19

The following information applies to questions below Really Fast Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2013 55,000 \ 195,000 2014 70,000 \ 210,000 2015 50,000 \ 180,000 2016 65,000 \ 205,000 2017 85,000 \ 225,150 -What is the estimated total cost per hour at a volume of 8,000 hours?

(Multiple Choice)

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Question 20

Classify the total costs of each of the following as -Fire insurance on factory building

Classify the total costs of each of the following as -Wages of machine operator who is paid based on number of units produced on the machine

The cost of maintaining general facilities such as buildings and grounds would best be classified as what type of activity?

Classify the total costs of each of the following as -Overhead costs in the factory for incidental components such as small screws and rivets.

Classify the total costs of each of the following as -Electric power in a factory

Classify the total costs of each of the following as -Property taxes

Joint products are:

Classify the total costs of each of the following as -Salaries of quality inspectors when each inspector can evaluate a maximum of 500 units per day

Classify the total costs of each of the following as -Keyboards purchased from a subcontract supplier in a computer assembly plant

Introducing Financial Accounting

Categorizing Inventory on the Balance Sheet

Reporting and Analyzing Liabilities,inventory Long-Term Operating Assets, Revenues and Receivables

Understanding the Importance of Management Accounting Reports and Off-Balance-Sheet Financing

Product Costing: Job and Process Operations

Analyzing Total Payroll Department Costs

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