Exam 3: Cost Behaviour: Analysis and Use

Expense A is a fixed cost;expense B is a variable cost.During the current year,the activity level has increased but is still within the relevant range.In terms of cost per unit of activity,you would expect which of the following statements to be true?

The controller of Joy Co has requested a quick estimate of the manufacturing supplies needed for 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. )

Which of the following concepts used in estimating cost behaviour is unique to the least-squares regression method?

Which of the following is an example of a discretionary fixed cost?

What is the gross margin of Evans Retail Stores,Inc. ,for the first quarter?

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

The linear equation Y = a + bX is often used to express cost formulas.Which of the following representations in this equation is correct?

Which of the operating expenses of the company is variable?

What is the best estimate of the total fixed cost per period for Maxwell Company?

Selected data about Pitkin Company's manufacturing operations at two levels of activity are presented below: Required: Using the high-low method,estimate the cost formula for manufacturing overhead.Assume that both direct material and direct labour are variable costs.Using your results,estimate the total manufacturing cost at a level of 12,000 units.

The "goodness of fit" statistic (that is,R-squared)associated with the least-squares regression method indicates the proportion of a mixed cost that is variable.

Using the high-low method,what is the fixed portion of the electrical cost each month?

What is the total monthly fixed cost for Boggs Sporting Equipment Company?

What was the gross margin(loss)for Porter Company for the second quarter?

What is the best estimate of the company's contribution margin for this year?

Which of the following items of Sorter Company's expenses and/or costs can be misleading if reported on a per unit of production and/or sales basis?

Within the relevant range of activity,how will variable cost per unit behave?

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

Buckeye Company has provided the following data for maintenance cost: Using the high-low method,what is the cost formula for maintenance cost?

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