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80. At
a volume of 10,000 units, Company P incurs $30,000 in factory overhead costs,
including $10,000 in fixed costs. Assuming that this activity is within the
relevant range, if volume increases to 12,000 units, Company P would expect to
incur total factory overhead costs of:
A.
$36,000
B.
$34,000
C.
$30,000
D.
$32,000
81.
At an activity level of
4,400 units in a month, Goldbach Corporation’s total variable maintenance and
repair cost is $313,632 and its total fixed maintenance and repair cost is
$93,104. What would be the total maintenance and repair cost, both fixed and
variable, at an activity level of 4,600 units in a month? Assume that this
level of activity is within the relevant range.
A.
$420,992
B.
$425,224
C.
$415,980
D.
$406,736
82.
Supply costs at
Lattea Corporation’s chain of gyms are listed below:
Page
9 of 73
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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:
A.
$2.44 per client-visit; $28,623 per
month
B.
$1.33 per client-visit;
$12,768 per month
C.
$0.79 per client-visit;
$19,321 per month
D.
$0.75 per client-visit; $19,826 per
month
83.
Electrical costs at one of Vanartsdalen Corporation’s factories are listed
below:
.0/msohtmlclip1/01/clip_image002.jpg”>
Management
believes that electrical cost is a mixed cost that depends on machine-hours.
Using the high-low method to estimate the variable and fixed components of this
cost, these estimates would be closest to:
A.
$14.41 per machine-hour; $33,832 per
month
B.
$0.11 per machine-hour;
$33,957 per month
C.
$9.35 per machine-hour;
$11,885 per month
D.
$11.30 per machine-hour; $7,229 per
month
84.
A soft drink bottler
incurred the following plant utility costs: 1,800 units bottled with utility
costs of $5,750, and 1,500 units bottled with utility costs of $5,200. What is
the variable cost per unit bottled (Use the High-low method. Round to the
nearest cent.)
A.
$3.47.
B.
$3.19.
C.
$1.83.
D.
None of the above is true.
85.
The following data pertains to activity and maintenance costs for two recent
years:
.0/msohtmlclip1/01/clip_image003.jpg”>
Using the
high-low method, the cost formula for maintenance would be:
A.
$1.50 per unit
B.
$1.25 per unit
C.
$3,000 plus $1.50 per
unit
D.
$6,000 plus $0.75 per unit
86.
The following data pertains to activity and utility costs for two recent years:
.0/msohtmlclip1/01/clip_image004.jpg”>
Using the
high-low method, the cost formula for utilities is:
A.
$1.50 per unit
B.
$1.20 per unit
C.
$3,000 plus $3.00 per
unit
D.
$4,500 plus $0.75 per unit
87.
Maintenance
costs at a Tierce Corporation factory are listed below:
Page
10 of 73
.0/msohtmlclip1/01/clip_image005.jpg”>
Management
believes that maintenance cost is a mixed cost that depends on machine-hours.
Using the high-low method to estimate the variable and fixed components of this
cost, these estimates would be closest to:
A.
$14.54 per machine-hour; $52,671 per
month
B.
$9.27 per machine-hour;
$19,076 per month
C.
$0.11 per machine-hour;
$52,591 per month
D.
$9.27 per machine-hour; $19,071 per
month
88.
Buckeye Company has provided the following data for maintenance cost:
.0/msohtmlclip1/01/clip_image006.jpg”>
The best
estimate of the cost formula for maintenance would be:
A.
$21,625 per year plus $0.625 per machine
hour
B.
$7,000 per year plus
$0.625 per machine hour
C.
$7,000 per year plus
$1.60 per machine hour
D.
$27,000 per year plus $1.60 per machine
hour
89. Haar
Inc. is a merchandising company. Last month the company’s cost of goods sold
was $61,000. The company’s beginning merchandise inventory was $11,000 and its
ending merchandise inventory was $21,000. What was the total amount of the
company’s merchandise purchases for the month?
A.
$61,000
B.
$51,000
C.
$71,000
D.
$93,000
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