Exam 3: Cost Behavior, Cost Forecasting, and Segmented Income Statements

The following 6 months of data were collected on electricity cost and the number of machine hours in a factory. - A dependent variable value used in calculating the cost line using the high-low method is:

Glascro Company manufactures skis.The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery.Data for the past four months were collected as follows: What would be the total lease cost of Glascro Company's at a level of 500 machine hours?

Zeklen Company had the following data for the month: Fixed overhead is $2,000 per month; it is applied to production based on normal activity of 1,000 units.During the month, 3,000 units were produced.Zeklen started the month with 200 units in beginning inventory, with unit product cost equal to this month's unit product cost.A total of 1,200 units were sold during the month at a price of $10.Selling and administrative expense for the month, all fixed, totaled $2,400. What is the unit product cost under absorption costing?

The fabric used to manufacture curtains is an example of a material or a ____________ cost.

Select the appropriate cost behavior for each of the costs listed below. -raw materials

Fixed costs that cannot be easily changed and typically involve a long-term contract are known as ___________________.

The following cost formula was developed using monthly data for a retail clothing store. Total cost = $75,620 + ($242 × number of customers) The term "total cost"

The lease cost of office computers is a _____ for an accounting firm.

Select the appropriate cost behavior for each of the costs listed below. -factory supplies

Maxwell Company makes treadmills.The company controller wants to calculate the fixed and variable costs associated with the janitorial costs incurred in the factory.Data for the past four months were collected. What would Maxwell Company's estimate of total janitorial cost be at a level of 600 machine hours?

A _______________ displays a constant level of cost for a range of output and then jumps to a higher level of cost at some point.

Match the type of income statement to the costs it includes. -Direct materials for units sold

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -depreciation on robotic equipment

Discretionary fixed cost does not include _____.

Select the appropriate item for each of the definitions listed below. -its value depends on the value of another variable

The relevant range is the range of output within which the assumed cost relationship is valid for the normal operations of the firm.

The following four months of data were collected on utility cost and the number of labor hours in a factory. - What would be the estimate of electricity cost if the factory incurred 4,700 labor hours next month?

Ramon Company reported the following units of production and sales for June and July: Income under absorption costing for June was $40,000; income under variable costing for July was $50,000.Fixed costs were $600,000 for each month. - How much was income for June using variable costing?

Steele Corporation has the following information for January, February, and March: Production costs per unit (based on 10,000 units) are as follows: There were no beginning inventories for January, and all units were sold for $50.Costs are stable over the three months. - What is the February contribution margin for Steele Corporation using the variable costing method?

The scatter-graph method