Exam 3: Cost Behavior: Analysis and Use

Stewart Company is attempting to classify costs according to their cost behavior.Data concerning activity and costs are listed below: -The costs that Stewart Company would classify as mixed would be:

Porter Company has provided the following data for the second quarter of the most recent year: Assume that direct labor is a variable cost and that there were no beginning or ending inventories. -The total contribution margin of Porter Company for the second quarter was:

An example of a discretionary fixed cost is:

Buffo Company fabricates metal folding chairs.Data concerning the company's revenue and cost structure follow: -If Buffo plans to produce and sell 4,000 units next month,the expected gross margin would be:

Anderton Corporation has provided the following production and average cost data for two levels of monthly production volume.The company produces a single product. The best estimate of the total monthly fixed manufacturing cost is:

Buffo Company fabricates metal folding chairs.Data concerning the company's revenue and cost structure follow: -If Buffo plans to produce and sell 3,000 units next month,the expected contribution margin would be:

Giaquinto Corporation reports that at an activity level of 7,600 units,its total variable cost is $182,856 and its total fixed cost is $444,296. Required: For the activity level of 7,900 units,compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit;and (f) the average total cost per unit.Assume that this activity level is within the relevant range.

At an activity level of 7,900 machine-hours in a month,Manchester Corporation's total variable maintenance cost is $430,550 and its total fixed maintenance cost is $417,120. -What would be the average fixed maintenance cost per unit at an activity level of 8,000 units in a month? Assume that this level of activity is within the relevant range.

Pfalzgraf Corporation,a manufacturing company,has provided the following financial data for January: The company had no beginning or ending inventories. -The gross margin for January was:

The following data pertain to activity and costs for two recent months: Assuming that these activity levels are within the relevant range,the mixed costs for November were:

Maxwell Company has a total expense per unit of $2.00 per unit at the 16,000 level of activity and total expense per unit of $1.95 at the 21,000 unit level of activity. -The best estimate of the total expected costs at the 19,000 level of activity for Maxwell Company is:

Within the relevant range,the variable cost per unit:

At an activity level of 2,400 units,Kloster Corporation's total variable cost is $118,008 and its total fixed cost is $9,000. Required: For the activity level of 2,500 units,compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit;and (f) the average total cost per unit.Assume that this activity level is within the relevant range.

Electrical costs at one of Noyd Corporation's factories are listed below: Management believes that electrical cost is a mixed cost that depends on machine-hours. -Using the high-low method,the estimate of the fixed component of electrical cost per month is closest to:

Economists correctly point out that many costs that the accountant classifies as variable are actually curvilinear.

With automation,fixed costs increase relative to variable costs.

Given the cost formula Y = $12,000 + $6X,total cost at an activity level of 8,000 units would be:

The management of Harper Corporation,a manufacturing company,has provided the following financial data for December: The contribution margin for December was:

Shipping expense is $9,000 for 8,000 pounds shipped and $11,250 for 11,000 pounds shipped.Assuming that this activity is within the relevant range,if the company ships 9,000 pounds,its expected shipping expense is closest to:

Supply costs at Rupard Corporation's chain of gyms are listed below: Management believes that supply cost is a mixed cost that depends on client-visits.Using the high-low method to estimate the variable and fixed components of this cost,those estimates would be closest to: