Exam 6: Cost Behavior

The Maple Company has total fixed costs of $400,000.It also has $200,000 in total variable costs.These costs exist at a production level of 100,000 units.The variable cost per unit is

Johnson Trucking Company wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to each area.It wants to separate the fixed and variable portion of the truck's operating costs so it has a better idea of how distance affects these costs.Johnson Trucking Company has the following data available. The variable cost per mile using the high-low method is

Sea Side Enterprises is trying to predict the cost associated with producing its anchors.At a production level of 5,000 anchors,Sea Side Enterprises average cost per anchor is $52.00.If $15,000 of the costs are fixed,and the plant manager uses the average cost per unit to predict total costs,her forecast for 6,000 anchors will be

If a scatter plot reveals a fairly weak relationship between cost and volume,the manager should select a different activity for modeling cost behavior.

Which is true about a scatter plot?

On a regression analysis output generated with Excel,a regression equation's fixed cost component is represented by the

Using account analysis,what type of cost are utilities if you are charged $45 for the first 400 kilowatt hours,$100 for 401-600 kilowatt hours,and $165 + or - for 601-900 kilowatt hours?

In the equation y = vx + f,the x represents the fixed costs.

Jeans's Fitness Club provides monthly memberships as well as personal training sessions.The personal trainers earn 50% of the revenue for all personal training sessions.The Fitness Club also sells nutrition products.Jeans's general ledger accounts indicate the following for the year.The front desk staff wages expense remains the same throughout the year. If a contribution margin income statement is prepared for the year,what is the contribution margin?

Cost behavior can be mathematically expressed using equations.

Your client's company wants to determine the relationship between its monthly operating costs and a potential cost driver.The output of regression analysis showed the following information: Intercept Coefficient = 89,500 X Variable 1 Coefficient = 62.50 R-square = 0.9855 What is the company's monthly cost equation?

When using the high-low method,what is the correct order of the following three steps? I.write the cost equation Ii.find the vertical intercept Iii.find the slope

In the equation y = $11.75x + $550,

Which step is performed first when using the high-low method?