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

Blacken Company manufactures motorcycles.The company's management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory.Data for the past five months were collected. - Using a regression program, the forecasted utility cost at 2,300 machine hours (rounded to the nearest dollar) is

Loring Company had the following data for the month: Fixed overhead is $4,000 per month; it is applied to production based on normal activity of 2,000 units.During the month, 2,000 units were produced.Loring started the month with 300 units in beginning inventory, with unit product cost equal to this month's unit product cost.A total of 2,100 units were sold during the month at price of $14.Selling and administrative expense for the month, all fixed, totaled $3,600. What is operating income under variable costing?

Which of the following is true of a committed fixed cost?

Absorption costing treats fixed factory overhead as a ____________.

As output decreases fixed costs per unit will increase.

When monthly production volume and sales are the same, ____.

Which of the following is true of unit fixed costs?

Blacken Company manufactures motorcycles.The company's management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory.Data for the past five months were collected. - Using a regression program, the forecasted utility cost at 2,550 machine hours (rounded to the nearest dollar) is

The scatter graph method used to establish a cost relationship:

Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12.Costs for last year were as follows: ​ ​ Fixed factory overhead is applied based on expected production.Last year, Fabre expected to produce 20,000 units.What is operating income for last year under variable costing?

Which of the following is true about the cost formula given below? Total cost = $90,000 + ($300 × number of tax returns) The term "total cost" is the:

The inventory cost computed under absorption costing is ____ the inventory cost computed using variable costing.

Which of the following is true of a mixed cost?​

Managerial judgment is critically important in determining cost behavior.

The following information pertains to Mayberry Corporation: - What is the value of the ending inventory using the variable costing method?

The spreadsheet regression program supplies more than the estimates of the coefficients; it also provides information that can be used to see how ________ the cost equation is which is a feature not available for the high-low method.

When production is less than sales volume, income under absorption costing will be ____ income using variable costing procedures.

The ________________ is the range of output over which the assumed cost relationship is valid for the normal operations of a firm.

Rental expense for a warehouse is an example of a ___________ cost.

Bailey Company incurred the following costs in manufacturing desk calculators: During the period, the company produced and sold 2,000 units. - What is the inventory cost per unit using variable costing?