Anderson Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. \[\begin{array} { | l | r | r | } \hline \text { Production volume } & 4,000 \text { units } & 5,000 \text { units } \\ \hline \text { Direct materials } & \$ 99.20 \text { per unit } & \$ 99.20 \text { per unit } \\ \hline \text { Direct labor } & \$ 45.50 \text { per unit } & \$ 45.50 \text { per unit } \\ \hline \text { Manufacturing overhead } & \$ 94.00 \text { per unit } & \$ 7.60 \text { per unit } \\ \hline \end{array}\] The best estimate of the total monthly fixed manufacturing cost is:

A) $388,000 B) $954,800 C) $376,000 D) $328,000 A) $388,000 B) $954,800 C) $376,000 D) $328,000

Exam 1: Managerial Accounting and Cost Concepts

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The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: The best estimate of the total variable manufacturing cost per unit is:

(Multiple Choice)

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Question 181

Direct material costs are generally fixed costs.

(True/False)

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Question 182

Cost behavior is considered linear whenever a straight line is a reasonable approximation for the relation between cost and activity.

(True/False)

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Question 183

Anderson Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. Production volume 4,000 units 5,000 units Direct materials \ 99.20 per unit \ 99.20 per unit Direct labor \ 45.50 per unit \ 45.50 per unit Manufacturing overhead \ 94.00 per unit \ 7.60 per unit The best estimate of the total monthly fixed manufacturing cost is:

(Multiple Choice)

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Question 184

The following costs were incurred in April: Prime costs during the month totaled:

(Multiple Choice)

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Question 185

Sobota Corporation has provided the following partial listing of costs incurred during August: Required: a. What is the total amount of product cost listed above? Show your work. b. What is the total amount of period cost listed above? Show your work.

(Essay)

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Question 186

The high-low method uses cost and activity data from just two periods to establish the formula for a mixed cost.

(True/False)

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Question 187

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The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: The best estimate of the total variable manufacturing cost per unit is:

Direct material costs are generally fixed costs.

Cost behavior is considered linear whenever a straight line is a reasonable approximation for the relation between cost and activity.

The following costs were incurred in April: Prime costs during the month totaled:

Sobota Corporation has provided the following partial listing of costs incurred during August: Required: a. What is the total amount of product cost listed above? Show your work. b. What is the total amount of period cost listed above? Show your work.

The high-low method uses cost and activity data from just two periods to establish the formula for a mixed cost.

Job-Order Costing

Activity-Based Costing

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Flexible Budgets, Standard Costs, and Variance Analysis

Performance Measurement in Decentralized Organizations

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

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