The following data pertain to costs at Martin Company: \[\begin{array} { | l | c | } \hline \text { Total fixed costs } & \$ 250,000 \\ \hline \text { Total variable costs } & \$ 80,000 \\ \hline \text { Production level } & 40,000 \text { units } \\ \hline \end{array}\] - The variable cost per unit is:

A) $6.25. B) $8.25. C) $4.25. D) $2.00. A) $6.25. B) $8.25. C) $4.25. D) $2.00.

Atwood Dairy Bar sells its famous soft-serve ice cream cones near a marina and resort area.The owner,Theresa,wants to determine the cost behavior patterns to help planning for the next summer season.She has the following information available about the operating costs and the number of soft-serve cones served. \[\begin{array} { | l | c | c | } \hline \text { Month } & \text { Number of soft-serve canes } & \text { Total operating costs } \\ \hline \text { April } & 8,200 & \$ 5,200 \\ \hline \text { May } & 8,600 & \$ 5,500 \\ \hline \text { June } & 7,500 & \$ 4,500 \\ \hline \text { July } & 9,700 & \$ 6,000 \\ \hline \text { August } & 8,900 & \$ 5,900 \\ \hline \text { September } & 5,700 & \$ 5,000 \\ \hline \end{array}\] Theresa uses the high-low method to determine the operating cost equation and sells 8,000 cones in a month for $2.00 each. -What would the operating income be if she prepared a contribution margin income statement for that month?

A) $14,000 B) $ 2,000 C) $16,000 D) $10,425 A) $14,000 B) $ 2,000 C) $16,000 D) $10,425

Exam 6: Cost Behavior

Wendell's Bicycles store buys bicycles on average for $500 and sells them on average for $800.He pays a sales commission of 10% of sales revenue to his sales staff.Wendell pays $1,500 a month rent for his store,and also pays $3,000 a month to his staff in addition to the commissions.Wendell sold 100 bicycles in June. -If Wendell prepares a contribution margin income statement for the month of June,what would be his operating income?

(Multiple Choice)

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Question 181

In a regression output,the "intercept coefficient" represents the fixed cost component of a mixed cost equation.

(True/False)

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Question 182

The following data pertain to costs at Martin Company: Total fixed costs \ 250,000 Total variable costs \ 80,000 Production level 40,000 units - The variable cost per unit is:

(Multiple Choice)

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Question 183

If production increases by 15%,how will total variable costs likely react?

(Multiple Choice)

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Question 184

When using the high-low method,what step is performed first?

(Multiple Choice)

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Question 185

To follow is information about the units produced and total manufacturing costs for Darryl Rug Company for the past six months. Month Number of units produced Total manufacturing costs January 28,000 \ 21,500 February 31,200 \ 22,500 March 25,200 \ 19,500 April 25,400 \ 20,000 May 30,000 \ 23,000 June 29,000 \ 21,900 Darryl Rug Company uses the high-low method to estimate its costs. Answer the following questions: a.What is the variable cost per unit? b.What is the monthly fixed manufacturing cost? c.Write the cost equation that could be used to predict Darryl Rug Company' total manufacturing costs. c.What will the total monthly manufacturing costs be if the company produces 28,000 units?

(Essay)

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Question 186

When graphing total variable costs,the cost line always begins at the origin.

(True/False)

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Question 187

The tennis club where you play tennis charges $35.00 per month and $12.00 per hour of court time.If your current bill is $131.00,how many hours did you use?

(Multiple Choice)

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Question 188

On a contribution margin income statement,all fixed costs are listed:

(Multiple Choice)

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Question 189

Wendell's Bicycles store buys bicycles on average for $500 and sells them on average for $800.He pays a sales commission of 10% of sales revenue to his sales staff.Wendell pays $1,500 a month rent for his store,and also pays $3,000 a month to his staff in addition to the commissions.Wendell sold 100 bicycles in June. -If Wendell prepares a traditional income statement for the month of June,what would be his gross profit?

(Multiple Choice)

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Question 190

If 125,000 units are produced,total costs are $380,000.Total fixed costs for White Sails,Inc.are $180,000.The variable cost per unit is:

(Multiple Choice)

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Question 191

BestCalls has a special plan offer this month.There is a $4.00 per month charge each month and calls anywhere in the United States are $0.03 per minute.What would the monthly cost be if you typically talk for 500 minutes per month?

(Multiple Choice)

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Question 192

If there is little or no relationship between the cost and volume,the data points on a scatter plot will appear almost random.

(True/False)

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Question 193

In the equation y = $9.90x + $120,014,"x" represents

(Multiple Choice)

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Question 194

At Raines Company,total fixed and variable costs are $480,000 at a production level of 140,000 units.The company has total fixed costs of $200,000.The variable cost per unit at 200,000 units is:

(Multiple Choice)

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Question 195

The cost of goods sold is a variable cost for a retailer,but contains a mixture of variable and fixed production costs for manufacturers.

(True/False)

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Question 196

A cost whose total amount changes in direct proportion to a change in volume is a(n)__________ cost.

(Multiple Choice)

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Question 197

The following graph indicates which type of cost behavior?

(Multiple Choice)

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Question 198

Atwood Dairy Bar sells its famous soft-serve ice cream cones near a marina and resort area.The owner,Theresa,wants to determine the cost behavior patterns to help planning for the next summer season.She has the following information available about the operating costs and the number of soft-serve cones served. Month Number of soft-serve canes Total operating costs April 8,200 \ 5,200 May 8,600 \ 5,500 June 7,500 \ 4,500 July 9,700 \ 6,000 August 8,900 \ 5,900 September 5,700 \ 5,000 Theresa uses the high-low method to determine the operating cost equation and sells 8,000 cones in a month for $2.00 each. -What would the operating income be if she prepared a contribution margin income statement for that month?

(Multiple Choice)

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Question 199

Under variable costing,all nonmanufacturing costs are treated as inventoriable product costs.

(True/False)

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Question 200

Showing 181 - 200 of 266

In a regression output,the "intercept coefficient" represents the fixed cost component of a mixed cost equation.

The following data pertain to costs at Martin Company: Total fixed costs \ 250,000 Total variable costs \ 80,000 Production level 40,000 units - The variable cost per unit is:

If production increases by 15%,how will total variable costs likely react?

When using the high-low method,what step is performed first?

When graphing total variable costs,the cost line always begins at the origin.

The tennis club where you play tennis charges $35.00 per month and $12.00 per hour of court time.If your current bill is $131.00,how many hours did you use?

On a contribution margin income statement,all fixed costs are listed:

If 125,000 units are produced,total costs are $380,000.Total fixed costs for White Sails,Inc.are $180,000.The variable cost per unit is:

BestCalls has a special plan offer this month.There is a $4.00 per month charge each month and calls anywhere in the United States are $0.03 per minute.What would the monthly cost be if you typically talk for 500 minutes per month?

If there is little or no relationship between the cost and volume,the data points on a scatter plot will appear almost random.

In the equation y = $9.90x + $120,014,"x" represents

At Raines Company,total fixed and variable costs are $480,000 at a production level of 140,000 units.The company has total fixed costs of $200,000.The variable cost per unit at 200,000 units is:

The cost of goods sold is a variable cost for a retailer,but contains a mixture of variable and fixed production costs for manufacturers.

A cost whose total amount changes in direct proportion to a change in volume is a(n)__________ cost.

The following graph indicates which type of cost behavior?

Under variable costing,all nonmanufacturing costs are treated as inventoriable product costs.

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, lean Production, and the Costs of Quality

Process Costing

Cost-Volume-Profit Analysis

Short Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

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