Toronto Company makes cell phones. The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory. Data for the past four months were collected.Coefficients shown by a regression program are: $\begin{array}{lrr}& \text { Electricity } & \text { Machine } \\ \text { Month } & \text { cost } & \text { hours }\\ \text { May } & \$ 7,560 & 570 \\ \text { June } & 8,220 & 625 \\ \text { July } & 7,480 & 546 \\ \text { August } & 7,186 & 518 \end{array}$ $\begin{array}{ll} \text { Intercept } & 2,225 \\ \text { X Variable 1 } & 9.75 \end{array}$ -Refer to the Figure.Assume that 640 machine hours are budgeted.What would be the total budgeted cost for electricity next month?

A) $2,225 B) $4,015 C) $6,240 D) $8,465 A) $2,225 B) $4,015 C) $6,240 D) $8,465

St. John's Company incurred the following costs for the months of March and April. $\begin{array}{lrr}\text { Type of Cost } &\text { March }&\text { April }\\ \text { Insurance } & \$ 5,000 & \$ 5,000 \\ \text { Utilities } & 4,000 & 5,000 \\ \text { Depreciation } & 3,500 & 3,500 \\ \text { Materials } & 10,000 & 20,000 \end{array}$ -Refer to the Figure.Which of the following can be assumed from the information above?

A) Insurance and depreciation are fixed costs. B) Output decreased from March to April. C) Output stayed the same from March to April. D) Insurance is a mixed cost. A) Insurance and depreciation are fixed costs. B) Output decreased from March to April. C) Output stayed the same from March to April. D) Insurance is a mixed cost.

Exam 3: Cost Behaviour

Coefficients shown by a regression program are: Required: Intercept 7,600 Variable 1 5.10 A. Using the results of regressi on, calculate the fixed cost of maintenance and the variable rate per machine hour. B. Using the results of regression, construct the cost formula for the total maintenance cost. C. Calculate the budgeted cost for maintenance assuming that 610 hours are worked next month.

(Essay)

4.8/5

(36)

Question 21

Select the appropriate cost behaviour for the following costs incurred by a bicycle manufacturer. -Cost of gear shifters

(Multiple Choice)

4.8/5

(37)

Question 22

Select the best description for the following: -$40,000 − ($10.00 × 3,000)

(Multiple Choice)

4.9/5

(33)

Question 23

What is an example of a discretionary cost?

(Multiple Choice)

4.8/5

(40)

Question 24

What is a committed fixed cost for a coffee shop?

(Multiple Choice)

4.7/5

(40)

Question 25

Select the appropriate cost behaviour for each of the costs listed below. -Factory supervisor's salary

(Multiple Choice)

4.8/5

(40)

Question 26

Select the appropriate item for each of the definitions listed below. -corresponds to the fixed cost

(Multiple Choice)

4.8/5

(33)

Question 27

The following cost formula was developed using monthly data for Montreal Clothing Store.Total cost = $75,620 + ($242 × number of customers) -Refer to the Figure.What does "total cost" represent?

(Multiple Choice)

4.9/5

(41)

Question 28

Churchill Company has the following information available regarding costs at various levels of monthly production: Required: Production volume 7,000 10,000 Direct materials \ 70,000 \ 100,000 Direct labour 56,000 80,000 Indirect materials 21,000 30,000 Supervisors' salaries 12,000 12,000 Depreci ation on plant 10,000 10,000 Maintenance 32,000 44,000 Utilities 15,000 21,000 Insurance on plant and equipment 1,600 1,600 Property taxes on plant 2,000 2,000 Total \ 219,600 \ 300,600 $Churchill Company has the following information available regarding costs at various levels of monthly production: Required: \begin{array}{lrr} \text { Production volume } & 7,000 & 10,000 \\ \text { Direct materials } & \$ 70,000 & \$ 100,000 \\ \text { Direct labour } & 56,000 & 80,000 \\ \text { Indirect materials } & 21,000 & 30,000 \\ \text { Supervisors' salaries } & 12,000 & 12,000\\\text { Depreci ation on plant } & 10,000 & 10,000 \\ \text { Maintenance } & 32,000 & 44,000 \\ \text { Utilities } & 15,000 & 21,000 \\ \text { Insurance on plant and equipment } & 1,600 & 1,600 \\ \text { Property taxes on plant } & 2,000 & 2,000 \\ \text { Total } & \$ 219,600 & \$ 300,600 \\ \end{array}$

(Essay)

5.0/5

(43)

Question 29

The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance for the Regina Company. The following computer output was received: The driver used was the number of machine hours. Intercept 32,000 Slope 25 -Refer to the Figure.What was the cost formula for equipment maintenance?

(Multiple Choice)

4.9/5

(47)

Question 30

Using the high-low method,the calculation of the cost line uses the highest and lowest cost periods.

(True/False)

4.9/5

(42)

Question 31

Select the appropriate cost behaviour for each of the costs listed below. -Direct materials

(Multiple Choice)

4.7/5

(35)

Question 32

Toronto Company makes cell phones. The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory. Data for the past four months were collected.Coefficients shown by a regression program are: Electricity Machine Month cost hours May \ 7,560 570 June 8,220 625 July 7,480 546 August 7,186 518 Intercept 2,225 X Variable 1 9.75 -Refer to the Figure.Assume that 640 machine hours are budgeted.What would be the total budgeted cost for electricity next month?

(Multiple Choice)

4.7/5

(43)

Question 33

St. John's Company incurred the following costs for the months of March and April. Type of Cost March April Insurance \ 5,000 \ 5,000 Utilities 4,000 5,000 Depreciation 3,500 3,500 Materials 10,000 20,000 -Refer to the Figure.Which of the following can be assumed from the information above?

(Multiple Choice)

4.9/5

(37)

Question 34

As output decreases,variable cost per unit will also decrease.

(True/False)

5.0/5

(43)

Question 35

The following cost formula was developed using monthly data for Montreal Clothing Store.Total cost = $75,620 + ($242 × number of customers) -Refer to the Figure.What does "number of customers" represent?

(Multiple Choice)

4.9/5

(30)

Question 36

Select the best description for the following: -Total utility cost = $12,500 + ($10.00 × no.of machine hours)

(Multiple Choice)

4.9/5

(34)

Question 37

Select the appropriate cost behaviour for each of the costs listed below. -Warehouse rental

(Multiple Choice)

4.8/5

(31)

Question 38

If output decreases,what is the result?

(Multiple Choice)

4.8/5

(30)

Question 39

Discretionary fixed costs often involve a long-term contract.

(True/False)

4.8/5

(34)

Question 40

Showing 21 - 40 of 222

Select the appropriate cost behaviour for the following costs incurred by a bicycle manufacturer. -Cost of gear shifters

Select the best description for the following: -$40,000 − ($10.00 × 3,000)

What is an example of a discretionary cost?

What is a committed fixed cost for a coffee shop?

Select the appropriate cost behaviour for each of the costs listed below. -Factory supervisor's salary

Select the appropriate item for each of the definitions listed below. -corresponds to the fixed cost

The following cost formula was developed using monthly data for Montreal Clothing Store.Total cost = $75,620 + ($242 × number of customers) -Refer to the Figure.What does "total cost" represent?

Using the high-low method,the calculation of the cost line uses the highest and lowest cost periods.

Select the appropriate cost behaviour for each of the costs listed below. -Direct materials

St. John's Company incurred the following costs for the months of March and April. Type of Cost March April Insurance \ 5,000 \ 5,000 Utilities 4,000 5,000 Depreciation 3,500 3,500 Materials 10,000 20,000 -Refer to the Figure.Which of the following can be assumed from the information above?

As output decreases,variable cost per unit will also decrease.

The following cost formula was developed using monthly data for Montreal Clothing Store.Total cost = $75,620 + ($242 × number of customers) -Refer to the Figure.What does "number of customers" represent?

Select the best description for the following: -Total utility cost = $12,500 + ($10.00 × no.of machine hours)

Select the appropriate cost behaviour for each of the costs listed below. -Warehouse rental

If output decreases,what is the result?

Discretionary fixed costs often involve a long-term contract.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters