Given the following cost and activity observations for Leno Enterprises' utilities, use the high-low method to calculate Leno's variable utilities cost per machine hour. $\begin{array}{|l|l|l|} \hline & \text { Cost } & \text { Machine Hours } \\ \hline \text { September } & \$ 4,100 & 22,000 \\ \hline \text { October } & 3,700 & 18,000 \\ \hline \text { November } & 3,900 & 19,000 \\ \hline \text { December } & 4,500 & 28,000 \\ \hline & & \\ \hline \end{array}$

A) $0.08 B) $4.86 C) $0.25 D) $12.50 A) $0.08 B) $4.86 C) $0.25 D) $12.50

Field Legal Services is trying to determine the variable and fixed elements of its service overhead. The following data have been collected from recent activity: $\begin{array}{|l|l|l|} \hline & \text { Total Service Overliead } & \text { Cases Worked } \\ \hline \text { March } & \$ 22,900 & 112 \\ \hline \text { Apri1 } & 20,800 & 98 \\ \hline \text { May } & 26,400 & 138 \\ \hline & & \end{array}$ The formula for total service overhead costs is

A) $5,600 + $140 per case. B) $5,600 + $40 per case. C) $7,823 + $134.62 per case. D) $7,080 + $140 per case. A) $5,600 + $140 per case. B) $5,600 + $40 per case. C) $7,823 + $134.62 per case. D) $7,080 + $140 per case.

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: $\begin{array}{|l|l|l|l|} \hline & \text { Unit SalesPrice } & \text { Unit Variable Costs } & \text { Unit Sales } \\ \hline \text { Product A } & \$ 150 & \$ 100 & 8,000 \\ \hline \text { Product B } & 100 & 60 & 2,000 \\ \hline & & & \end{array}$ Fixed costs are $480,000. - The weighted-average breakeven point is

A) 11,429 units. B) 10,000 units. C) 5,333 units. D) 10,667 units. A) 11,429 units. B) 10,000 units. C) 5,333 units. D) 10,667 units.

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: $\begin{array}{|l|l|l|l|} \hline & \text { Unit SalesPrice } & \text { Unit Variable Costs } & \text { Unit Sales } \\ \hline \text { Product A } & \$ 150 & \$ 100 & 8,000 \\ \hline \text { Product B } & 100 & 60 & 2,000 \\ \hline & & & \end{array}$ Fixed costs are $480,000. - The weighted-average contribution margin is

A) $42. B) $45. C) $48. D) $90. A) $42. B) $45. C) $48. D) $90.

Trawest, Inc., has prepared the following data: $\begin{array}{|l|l|l|l|} \hline & \text { Unit SalesPrice } & \text { Unit Variable Costs } & \text { Unit Sales } \\ \hline \text { Prochuct A } & \$ 34.00 & \$ 20.00 & 35,000 \\ \hline \text { Prochuct B } & 26.00 & 14.50 & 7,000 \\ \hline \text { Prochuct C } & 18.00 & 10.50 & 14,000 \\ \hline & & & \end{array}$ The sales mix for Products A, B, and C is

A) 62.5 percent, 12.5 percent, and 25 percent, respectively. B) 100 percent, 20 percent, and 40 percent, respectively. C) 100 percent, 25 percent, and 50 percent, respectively. D) 44 percent, 33 percent, and 23 percent, respectively. A) 62.5 percent, 12.5 percent, and 25 percent, respectively. B) 100 percent, 20 percent, and 40 percent, respectively. C) 100 percent, 25 percent, and 50 percent, respectively. D) 44 percent, 33 percent, and 23 percent, respectively.

Match between columns Premises: Moving products Storing parts Research and development Inventory control Production Customer service Cost accounting Engineering

The Answer of value-adding and nonvalue-adding is...

Exam 5: Cost Behavior Analysis

Given the following cost and activity observations for Leno Enterprises' utilities, use the high-low method to calculate Leno's variable utilities cost per machine hour. Cost Machine Hours September \ 4,100 22,000 October 3,700 18,000 November 3,900 19,000 December 4,500 28,000

(Multiple Choice)

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Question 41

The contribution margin income statement enables managers to view revenue and cost relationships on a per unit basis or as a percentage of sales.

(True/False)

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Question 42

Field Legal Services is trying to determine the variable and fixed elements of its service overhead. The following data have been collected from recent activity: Total Service Overliead Cases Worked March \ 22,900 112 Apri1 20,800 98 May 26,400 138 The formula for total service overhead costs is

(Multiple Choice)

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Question 43

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: Unit SalesPrice Unit Variable Costs Unit Sales Product A \ 150 \ 100 8,000 Product B 100 60 2,000 Fixed costs are $480,000. - The weighted-average breakeven point is

(Multiple Choice)

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Question 44

Suppose a company rents a building for $250,000 a year for the purpose of manufacturing between 80,000 and 140,000 units (the relevant range of activity). The rental cost per unit of production will __________ as production levels increase.

(Multiple Choice)

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Question 45

The contribution margin equals total fixed costs at the breakeven point.

(True/False)

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Question 46

a. Provide two different ways of computing breakeven units: one with the contribution margin in the computation and one without the contribution margin. b. Compare and contrast the two different methods of computing breakeven units. Does the use of the contribution margin alter the resulting number of breakeven units? Why or why not? c. Comment on how the contribution margin affects the computation of breakeven units. Would an increase in the contribution margin increase or decrease the number of breakeven units required?

(Essay)

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Question 47

Contribution margin is selling price minus unit fixed costs.

(True/False)

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Question 48

The weighted-average contribution margin is computed by multiplying each product's unit contribution margin by the sales mix percentage of each product.

(True/False)

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Question 49

How many total dollars of sales must BAC Company sell to break even if the selling price per unit is $8.50, variable costs are $4.00 per unit, and fixed costs are $9,000?

(Multiple Choice)

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Question 50

If targeted sales are 12,000 units, the sales price per unit is $70, fixed costs are $130,000, and variable costs are $40 per unit, then planned profit must be $230,000.

(True/False)

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Question 51

Christian Company's sales revenue for 20xx was $144,000. Christian's product sells for $5.50 and has a 30 percent contribution margin. Christian has fixed costs of $33,000. -What is Christian Company's breakeven point in units?

(Multiple Choice)

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Question 52

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: Unit SalesPrice Unit Variable Costs Unit Sales Product A \ 150 \ 100 8,000 Product B 100 60 2,000 Fixed costs are $480,000. - The weighted-average contribution margin is

(Multiple Choice)

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Question 53

Martin, Inc., has two products: a pocket metronome (unit sales price, $25; unit variable cost, $15) and a pocket tuner (unit sales price, $14; unit variable cost, $9). The company's sales mix of the pocket metronome to the pocket tuner is 4:1 and fixed costs are $32,850. a. Determine the weighted-average contribution margin. b. Calculate the weighted-average breakeven point. c. Compute the breakeven point for each product.

(Essay)

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Question 54

Trawest, Inc., has prepared the following data: Unit SalesPrice Unit Variable Costs Unit Sales Prochuct A \ 34.00 \ 20.00 35,000 Prochuct B 26.00 14.50 7,000 Prochuct C 18.00 10.50 14,000 The sales mix for Products A, B, and C is

(Multiple Choice)

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Question 55

If fixed costs are $180,000, variable costs are $38 per unit, and the product sells for $70, the breakeven point in sales dollars is $393,750.

(True/False)

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Question 56

"Breakeven" is the point at which a company will begin to earn a profit.

(True/False)

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Question 57

Identify the following activities, for an automobile manufacturer as either :

Moving products

value-adding

Storing parts

nonvalue-adding

Research and development

Correct Answer:

Verified

Moving products

Storing parts

(Matching)

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Question 58

Breakeven analysis adjusted for a profit factor

(Multiple Choice)

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Question 59

Theoretical operating capacity is the level at which management expects to operate during a normal business environment.

(True/False)

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Question 60

Given the following cost and activity observations for Leno Enterprises' utilities, use the high-low method to calculate Leno's variable utilities cost per machine hour. Cost Machine Hours September \ 4,100 22,000 October 3,700 18,000 November 3,900 19,000 December 4,500 28,000

The contribution margin income statement enables managers to view revenue and cost relationships on a per unit basis or as a percentage of sales.

Field Legal Services is trying to determine the variable and fixed elements of its service overhead. The following data have been collected from recent activity: Total Service Overliead Cases Worked March \ 22,900 112 Apri1 20,800 98 May 26,400 138 The formula for total service overhead costs is

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: Unit SalesPrice Unit Variable Costs Unit Sales Product A \ 150 \ 100 8,000 Product B 100 60 2,000 Fixed costs are $480,000. - The weighted-average breakeven point is

Suppose a company rents a building for $250,000 a year for the purpose of manufacturing between 80,000 and 140,000 units (the relevant range of activity). The rental cost per unit of production will __________ as production levels increase.

The contribution margin equals total fixed costs at the breakeven point.

Contribution margin is selling price minus unit fixed costs.

The weighted-average contribution margin is computed by multiplying each product's unit contribution margin by the sales mix percentage of each product.

How many total dollars of sales must BAC Company sell to break even if the selling price per unit is $8.50, variable costs are $4.00 per unit, and fixed costs are $9,000?

If targeted sales are 12,000 units, the sales price per unit is $70, fixed costs are $130,000, and variable costs are $40 per unit, then planned profit must be $230,000.

Christian Company's sales revenue for 20xx was $144,000. Christian's product sells for $5.50 and has a 30 percent contribution margin. Christian has fixed costs of $33,000. -What is Christian Company's breakeven point in units?

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: Unit SalesPrice Unit Variable Costs Unit Sales Product A \ 150 \ 100 8,000 Product B 100 60 2,000 Fixed costs are $480,000. - The weighted-average contribution margin is

Trawest, Inc., has prepared the following data: Unit SalesPrice Unit Variable Costs Unit Sales Prochuct A \ 34.00 \ 20.00 35,000 Prochuct B 26.00 14.50 7,000 Prochuct C 18.00 10.50 14,000 The sales mix for Products A, B, and C is

If fixed costs are $180,000, variable costs are $38 per unit, and the product sells for $70, the breakeven point in sales dollars is $393,750.

"Breakeven" is the point at which a company will begin to earn a profit.

Breakeven analysis adjusted for a profit factor

Theoretical operating capacity is the level at which management expects to operate during a normal business environment.

The Changing Business Environment - a Managers Perspective

Costing Systems- Job Order Costing

Costing Systems- Process Costing

Value-Based Systems- Abm and Lean

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, Incl Target Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

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