l>ACCT-202 values of Managerial accounting - practice Exam - thing 3
ACCT 202 ethics of Managerial AccountingPractice exam - chapter 5Cost Behavior: evaluation and UseDr. Fred Barbee
Part I: Multiple-Choice QuestionsSelect your answer by clicking the switch next come the ideal alternative. You will certainly receive immediate feedback. 1. I beg your pardon of the following expenses is a variable cost? a. Supervisors" Salaryb. Depreciationc. Rentd. Raw products used in production 2. Together the volume of activity increases within the relevant range, the variable cost per unit a.Decreasesb.Decreases in ~ first, then increases.c.Remains the same.d.Increases. 3. Price behavior analysis focuses top top a.How prices react to changes in profit.b.How costs readjust over time.c.How prices react to transforms in task level.d.Both a and also c. 4. The relevant selection is a.A reasonably wide range of sales where total variable prices remain the same.b.A fairly wide range of sales wherein all prices remain the same.c.A fairly narrow variety of manufacturing where full FC are expected to continue to be the same.d.A fairly wide expectancy of production where full FC are expected to stay the same. 5. In the formula Y = a + bX, bX refers to the a.Slopeb.Intercept.c.Dependent variabled.Total change costs.Use the adhering to information for inquiry 6: complete Cost cost Per Unit direct Materials $1,500 $1.50 direct Labor 7,500 7.50 Depreciation on building 30,000 30.00 6. What is the full amount of direct materials because that 100 units? a.$1.50b.$3.00c.$150.00d.$225.00 7. Advantages of the method of least squares end the high-low method include every one of the following except a.A statistical an approach is used to mathematically have the price function.b.Only 2 points are supplied to build the expense function.c.The squared differences between actual observations and the line (cost function) are minimized.d.All the observations have an impact on the expense function.Use the complying with information for concern 8: The following information was available about supplies price for the second quarter that the year: Month manufacturing Volume Supplies cost April 700 $3,185 may 1,600 7,100 June 600 2,700 8. Utilizing the high-low method, the estimate of supplies price at 1,000 units of manufacturing is: a.$2,700b.$4,460c.$4,900d.$7,100 9. If in ~ a given volume complete costs and also fixed prices are known, the variable prices per unit might be computed as: a.(total costs - addressed costs)/unit volume.b.(total costs/unit volume) - resolved costs.c.(total expenses x unit volume) - (fixed costs/unit volume).d.(fixed expenses x unit volume) - full costs. 10. Fixed cost per unit is $9 once 20,000 units room produced and also $6 when 30,000 units space produced. What is the full fixed expense when naught is produced? a.$0b.$270,000.c.$15.d.$180,000Part II: Problems (To view the answer, click the equipment button.)Problem 1: Separation that Mixed costs - High-Low MethodThe complying with information is obtainable for electricity prices for the an initial six month of the year. Month ProductionVolume ElectricityCost January 4,200 $48,000 February 1,500 24,000 march 1,100 16,000 April 2,900 32,000 may 5,100 52,000 June 2,200 32,000 Required: Compute the fixed and also variable materials of electricity costs using the high-low method.

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What is the price formulafor electrical power costs?Problem 2: translate of Regression OutputThe to work Manager that Elron production requested information to help in estimating maintain costs. The followingcomputer printout was generated using the the very least squares method: Intercept 7,300 steep 4.20 Correlation Coefficient .90 activity Variable devices of production Volume Required:Using the info from the computer printout, develop a cost role that deserve to be usedto calculation maintenance prices at different volume levels.Estimate the maintenance prices if expected production for the next month is 20,000 units.What percentage adjust in maintenance prices can be described by transforms in production volume?
Last modification September 28, 2004