Exam 3: Systems Design: Activity-Based Costing

Jimbob Co.is a merchandising company that buys and resells tires for rally race cars.The company's income statements for the last two years are given below:

Mateo Company's average cost per unit is $1.425 at the 16,000 unit level of activity and $1.38 at the 20,000 unit level of activity. Assume that all of the activity levels mentioned in this problem are within the relevant range. Required: Predict the following items for Mateo Company: a.Variable cost per unit. b.Total fixed cost per period. c.Total expected costs at the 18,000 unit level of activity.

Shipping expense is $9,000 for 8,000 pounds shipped and $11,250 for 11,000 pounds shipped.Assuming that this activity is within the relevant range,if the company ships 9,000 pounds,its expected shipping expense is closest to?

At a sales level of $300,000,James Company's gross margin is $15,000 less than its contribution margin,its net income is $50,000,and its selling and administrative expenses total $120,000.At this sales level,its contribution margin would be?

What is the company's contribution margin for the quarter?

An example of a cost that is variable with respect to the number of units produced is:

What is the best estimate of the company's total fixed operating expenses per month?

Which of the following best describes the behaviour of variable cost per unit?

The controller of JoyCo has requested a quick estimate of the manufacturing supplies needed for the month of July when production is expected to be 470,000 units.Below are actual data from the prior three months of operations. Using these data and the high-low method,what is the best estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range. )

Advantages of the high-low method are that it is easy to understand and apply.

Which of the following is a fixed cost of producing sweatshirts?

Which of the following is an advantage of the high-low method?

Selected data about Pitkin Company's manufacturing operations at two levels of activity are given below:

What is the best estimate of the company's total fixed operating expenses per year?

In order for a cost to be variable it must vary with either units produced or units sold.

If the contribution margin is $50,000 and the total of fixed expenses is $40,000,then net income is $10,000.

Using the high-low method of analysis,the estimated fixed cost per month for electricity is closest to?

The total contribution margin of Porter Company for the second quarter was?

Indirect costs,such as manufacturing overhead,are always fixed costs.

The total monthly fixed cost for Boggs Sports Equipment Company is?