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Exam 1: Managerial Accounting and Cost Concepts

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Question 21

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Hinrichs Corporation reports that at an activity level of 2,400 units,its total variable cost is $174,504 and its total fixed cost is $55,080. Required: For the activity level of 2,700 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.

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Variable cost = $174...

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Question 22

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Prime cost consists of:

A) direct labor and manufacturing overhead.
B) direct materials and manufacturing overhead.
C) direct materials and direct labor.
D) direct materials, direct labor and manufacturing overhead.

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

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Question 23

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Conversion cost is the sum of direct labor cost and manufacturing overhead cost.

All of the following are examples of product costs except:

Fassino Corporation reported the following data for the month of November: -The prime cost for November was:

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.

Brault Corporation has provided the following information: If 10,000 units are sold,the variable cost per unit sold is closest to:

Kesterson Corporation has provided the following information: -The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to:

Pedregon Corporation has provided the following information: -If 4,000 units are sold,the total variable cost is closest to:

What would be the average fixed inspection cost per unit at an activity level of 2,400 machine-hours in a month? Assume that this level of activity is within the relevant range.

Lambeth Corporation has provided the following information: -If 3,000 units are produced,the total amount of indirect manufacturing cost incurred is closest to:

Kesterson Corporation has provided the following information: -If 6,000 units are produced,the total amount of direct manufacturing cost incurred is closest to:

The concept of the relevant range does not apply to variable costs.

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.

Fixed costs expressed on a per unit basis:

Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device. -The cost of the raw materials that will be used in manufacturing the computer board is:

Kesterson Corporation has provided the following information: -If 4,000 units are produced,the total amount of manufacturing overhead cost is closest to:

Schwiesow Corporation has provided the following information: -If 4,000 units are sold,the variable cost per unit sold is closest to:

Wessner Corporation has provided the following information: -If the selling price is $25.00 per unit,the contribution margin per unit sold is closest to:

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: