Exam 3: Systems Design: Activity-Based Costing

An analysis of past maintenance costs indicates that maintenance cost is an average of $0.20 per machine-hour at an activity level of 10,000 machine-hours and $0.25 per machine-hour at an activity level of 8,000 machine-hours.Assuming that this activity is within the relevant range,what is the total expected maintenance cost if the activity level is 8,700 machine-hours?

Using the high-low method,the fixed portion of the electrical cost each month would be?

The 4 x 4 Shop is a large retailer of equipment for pickup trucks.An income statement for the company's bed liner department for the most recent quarter is presented below:

Which of the following classifications best describes the behaviour of Cost C?

Discretionary fixed costs:

Which of the statements is correct about using the scattergraph method in analyzing costs?

Modern technology is causing shifts away from variable costs toward more fixed costs in many industries.

The net income using the contribution approach for the first quarter is?

The concept of the relevant range does not apply to fixed costs.

An example of a discretionary fixed cost is:

ABC Company's total overhead costs at various levels of activity are presented below:

Given the cost formula Y = $17,500 + $4X,at what level of activity will total cost be $42,500?

Contribution margin is the excess of revenues over:

The contribution margin for August is?

A business sells a product with variable costs per unit of $30.Fixed costs are $10,000 per period.The selling price per unit is $100.Assuming 1,000 units are sold in a period,what is the contribution margin for the period?

The best estimate of the total expected costs at the 19,000 unit level of activity for Maxwell Company is?

Capacity costs committed to only in the shorter term are termed as:

Given the cost formula Y = $15,000 + $5X,total cost at an activity level of 8,000 units would be?

The planning horizons for committed fixed costs and discretionary fixed costs are generally the same.

Which of the following classifications best describes the behaviour of Cost A?