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At an activity level of 8,400 units in a month, Braughton Corporation's total variable maintenance and repair cost is $697,284 and its total fixed maintenance and repair cost is $464,100. What would be the total maintenance and repair cost, both fixed and variable, at an activity level of 8,500 units in a month? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)


A) $1,175,210
B) $1,169,685
C) $1,161,384
D) $1,168,297

E) A) and D)
F) B) and C)

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Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as:


A) direct materials.
B) a period cost.
C) administrative expense.
D) manufacturing overhead.

E) A) and C)
F) B) and C)

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Shelp Corporation has provided the following information: Shelp Corporation has provided the following information: For financial reporting purposes, the total amount of period costs incurred to sell 9,000 units is closest to: A) $33,000 B) $9,000 C) $40,500 D) $49,500 For financial reporting purposes, the total amount of period costs incurred to sell 9,000 units is closest to:


A) $33,000
B) $9,000
C) $40,500
D) $49,500

E) A) and C)
F) None of the above

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Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to: A) $7,800 B) $8,100 C) $4,400 D) $12,200 For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:


A) $7,800
B) $8,100
C) $4,400
D) $12,200

E) None of the above
F) B) and C)

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The relevant range is the range of activity within which the assumption that cost behavior is strictly linear is reasonably valid.

A) True
B) False

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Phaup Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Phaup Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to: A) $8,200 B) $12,250 C) $7,500 D) $4,750 For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:


A) $8,200
B) $12,250
C) $7,500
D) $4,750

E) A) and B)
F) A) and C)

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Selling costs are indirect costs.

A) True
B) False

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Schwiesow Corporation has provided the following information: Schwiesow Corporation has provided the following information: If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: A) $73,200 B) $69,300 C) $86,400 D) $63,300 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:


A) $73,200
B) $69,300
C) $86,400
D) $63,300

E) B) and C)
F) A) and B)

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Glew Corporation has provided the following information: Glew Corporation has provided the following information: For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to: A) $57,200 B) $8,800 C) $44,400 D) $53,200 For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:


A) $57,200
B) $8,800
C) $44,400
D) $53,200

E) None of the above
F) A) and B)

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Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: If 10,000 units are produced, the average fixed manufacturing cost per unit produced is closest to: A) $15.00 B) $12.83 C) $13.50 D) $12.15 If 10,000 units are produced, the average fixed manufacturing cost per unit produced is closest to:


A) $15.00
B) $12.83
C) $13.50
D) $12.15

E) A) and D)
F) All of the above

Correct Answer

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

A) True
B) False

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Advertising is not considered a product cost even if it promotes a specific product.

A) True
B) False

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In April, Holderness Inc, a merchandising company, had sales of $221,000, selling expenses of $14,000, and administrative expenses of $25,000. The cost of merchandise purchased during the month was $155,000. The beginning balance in the merchandise inventory account was $34,000 and the ending balance was $48,000. Required: Prepare a traditional format income statement for April.

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blured image *Cost of goods sold = Beginni...

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Perkey Corporation has provided the following information: Perkey Corporation has provided the following information: If 4,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: A) $53,400 B) $35,600 C) $36,600 D) $31,600 If 4,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:


A) $53,400
B) $35,600
C) $36,600
D) $31,600

E) All of the above
F) C) and D)

Correct Answer

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Oerther Corporation reports that at an activity level of 5,000 units, its total variable cost is $131,750 and its total fixed cost is $31,200. What would be the total variable cost at an activity level of 5,200 units? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)


A) $137,020
B) $131,750
C) $162,950
D) $32,448

E) None of the above
F) All of the above

Correct Answer

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Which of the following statements about product costs is true?


A) Product costs are deducted from revenue when the production process is completed.
B) Product costs are deducted from revenue as expenditures are made.
C) Product costs associated with unsold finished goods and work in process appear on the balance sheet as assets.
D) Product costs appear on financial statements only when products are sold.

E) A) and B)
F) None of the above

Correct Answer

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Glew Corporation has provided the following information: Glew Corporation has provided the following information: If 3,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: A) $33,300 B) $31,050 C) $28,050 D) $39,900 If 3,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:


A) $33,300
B) $31,050
C) $28,050
D) $39,900

E) B) and C)
F) A) and D)

Correct Answer

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Wessner Corporation has provided the following information: Wessner Corporation has provided the following information: The incremental manufacturing cost that the company will incur if it increases production from 4,000 to 4,001 units is closest to: A) $16.00 B) $14.05 C) $10.45 D) $13.45 The incremental manufacturing cost that the company will incur if it increases production from 4,000 to 4,001 units is closest to:


A) $16.00
B) $14.05
C) $10.45
D) $13.45

E) A) and B)
F) C) and D)

Correct Answer

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All of the following can be differential costs except:


A) variable costs.
B) sunk costs.
C) opportunity costs.
D) fixed costs.

E) C) and D)
F) None of the above

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The following costs were incurred in May: The following costs were incurred in May: Prime costs during the month totaled: A) $36,000 B) $119,000 C) $69,000 D) $46,000 Prime costs during the month totaled:


A) $36,000
B) $119,000
C) $69,000
D) $46,000

E) None of the above
F) A) and B)

Correct Answer

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Showing 241 - 260 of 299

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