Question 1

To the nearest whole dollar, what should be the total sales commissions at a sales volume of 18,400 units? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A)  $126,720
B)  $132,000
C)  $121,440
D)  $143,478E) A) and B)
F) C) and D)

Question 2

If managers are reluctant to lay off direct labor employees when activity declines leads to a decrease in the ratio of variable to fixed costs.

Accepted Answer

A) True 
 B)False

Question 3

A factory supervisor's salary would be classified as an indirect cost with respect to a unit of product.

Accepted Answer

A) True 
 B)False

Question 4

A cost that differs from one month to another is known as a sunk cost.

Accepted Answer

A) True 
 B)False

Question 5

Within the relevant range, variable costs can be expected to:

Accepted Answer

A)  vary in total in direct proportion to changes in the activity level.
B)  remain constant in total as the activity level changes.
C)  increase on a per unit basis as the activity level increases.
D)  increase on a per unit basis as the activity level decreases.E) C) and D)
F) A) and B)

Question 6

Classify the following costs for an auto manufacturer as either direct materials, direct labor, manufacturing overhead, or period costs.   Required:
Complete the answer sheet above by placing an "X" under each heading that identifies the cost involved.

Accepted Answer

The answer of Classify the following costs for an auto...

Question 7

As the level of activity increases, how will a mixed cost in total and per unit behave?

Accepted Answer

The answer of As the level of activity increases, how...

Question 8

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.

Accepted Answer

A)  $137,020
B)  $131,750
C)  $162,950
D)  $32,448E) B) and D)
F) None of the above

Question 9

If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Accepted Answer

A)  $20,500
B)  $23,000
C)  $18,000 
D)  $19,250E) A) and C)
F) B) and D)

Question 10

If 4,000 units are sold, the total variable cost is closest to:

Accepted Answer

A)  $67,000
B)  $47,600
C)  $51,400
D)  $58,800E) B) and D)
F) All of the above

Question 11

The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:

Accepted Answer

A)  Y = $102,000 + $5X
B)  Y = $102,000 + $7X
C)  Y = $78,000 + $7X
D)  Y = $78,000 + $9XE) All of the above
F) A) and D)

Question 12

A cost incurred in the past that is not relevant to any current decision is classified as a(n) :

Accepted Answer

A)  period cost.
B)  opportunity cost.
C)  sunk cost.
D)  differential cost.E) C) and D)
F) B) and D)

Question 13

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

Accepted Answer

A)  $78,000
B)  $45,000
C)  $41,000
D)  $37,000E) A) and C)
F) B) and D)

Question 14

Manufacturing overhead includes:

Accepted Answer

A)  all direct material, direct labor and administrative costs.
B)  all manufacturing costs except direct labor.
C)  all manufacturing costs except direct labor and direct materials.
D)  all selling and administrative costs.E) A) and C)
F) A) and B)

Question 15

The costs of direct materials are classified as:

Accepted Answer

The answer of The costs of direct materials are classified...

Question 16

Dizzy employees a certified operator for each of its 35 rides.Each operator is paid $20 per hour.The cost of the certified operators would best be described as a:

Accepted Answer

A)  fixed cost
B)  mixed cost
C)  step-variable cost
D)  true variable costE) C) and D)
F) A) and D)

Question 17

The contribution margin for the University Store for the first quarter is:

Accepted Answer

A)  $660,000
B)  $700,000
C)  $180,000
D)  $140,000E) None of the above
F) A) and B)

Question 18

Myklebust Corporation's relevant range of activity is 4,000 units to 8,000 units.When it produces and sells 6,000 units, its average costs per unit are as follows:  Required:
a.For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units?
b.For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units?
c.If the selling price is $20.20 per unit, what is the contribution margin per unit sold?
d.If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred?
e.If 7,000 units are produced, what is the total amount of indirect manufacturing cost incurred?
f.What incremental manufacturing cost will the company incur if it increases production from 6,000 to 6,001 units?

Accepted Answer

a.

_TB2627_00 b.

_TB2627_00 c.

_TB2627_0...

Question 19

Tirri Corporation has provided the following information:  If the selling price is $26.20 per unit, the contribution margin per unit sold is closest to:

Accepted Answer

A)  $12.65
B)  $6.65
C)  $15.45
D)  $9.70E) B) and D)
F) C) and D)

Question 20

A decrease in production will ordinarily result in a decrease in fixed production costs per unit.

Accepted Answer

A) True 
 B)False

Exam 1: Managerial Accounting and Cost Concepts

Classify the following costs for an auto manufacturer as either direct materials, direct labor, manufacturing overhead, or period costs. Required: Complete the answer sheet above by placing an "X" under each heading that identifies the cost involved.

Correct Answer
verified

Correct Answer
verified
a. _TB2627_00 b. _TB2627_00 c. _TB2627_0...
View Answer

The contribution margin for the University Store for the first quarter is:

Correct Answer
verified

A factory supervisor's salary would be classified as an indirect cost with respect to a unit of product.

Correct Answer
verified

As the level of activity increases, how will a mixed cost in total and per unit behave?

Correct Answer
verified

If managers are reluctant to lay off direct labor employees when activity declines leads to a decrease in the ratio of variable to fixed costs.

Correct Answer
verified

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.

Correct Answer
verified

The costs of direct materials are classified as:

Correct Answer
verified

Within the relevant range, variable costs can be expected to:

Correct Answer
verified

If 4,000 units are sold, the total variable cost is closest to:

Correct Answer
verified

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

Correct Answer
verified

If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Correct Answer
verified

A decrease in production will ordinarily result in a decrease in fixed production costs per unit.

Correct Answer
verified

To the nearest whole dollar, what should be the total sales commissions at a sales volume of 18,400 units? (Assume that this sales volume is within the relevant range.)

Correct Answer
verified

Tirri Corporation has provided the following information: If the selling price is $26.20 per unit, the contribution margin per unit sold is closest to:

Correct Answer
verified

A cost incurred in the past that is not relevant to any current decision is classified as a(n) :

Correct Answer
verified

Dizzy employees a certified operator for each of its 35 rides.Each operator is paid $20 per hour.The cost of the certified operators would best be described as a:

Correct Answer
verified

Manufacturing overhead includes:

Correct Answer
verified

The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:

Correct Answer
verified

A cost that differs from one month to another is known as a sunk cost.

Correct Answer
verified

Exam 1: Managerial Accounting and Cost Concepts

Classify the following costs for an auto manufacturer as either direct materials, direct labor, manufacturing overhead, or period costs. Required: Complete the answer sheet above by placing an "X" under each heading that identifies the cost involved.

Correct AnswerverifiedShow Answer

Correct Answerverifieda. _TB2627_00 b. _TB2627_00 c. _TB2627_0...View AnswerShow Answer

The contribution margin for the University Store for the first quarter is:

Correct AnswerverifiedShow Answer

A factory supervisor's salary would be classified as an indirect cost with respect to a unit of product.

Correct AnswerverifiedShow Answer

As the level of activity increases, how will a mixed cost in total and per unit behave?

Correct AnswerverifiedShow Answer

If managers are reluctant to lay off direct labor employees when activity declines leads to a decrease in the ratio of variable to fixed costs.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

The costs of direct materials are classified as:

Correct AnswerverifiedShow Answer

Within the relevant range, variable costs can be expected to:

Correct AnswerverifiedShow Answer

If 4,000 units are sold, the total variable cost is closest to:

Correct AnswerverifiedShow Answer

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

Correct AnswerverifiedShow Answer

If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Correct AnswerverifiedShow Answer

A decrease in production will ordinarily result in a decrease in fixed production costs per unit.

Correct AnswerverifiedShow Answer

To the nearest whole dollar, what should be the total sales commissions at a sales volume of 18,400 units? (Assume that this sales volume is within the relevant range.)

Correct AnswerverifiedShow Answer

Tirri Corporation has provided the following information: If the selling price is $26.20 per unit, the contribution margin per unit sold is closest to:

Correct AnswerverifiedShow Answer

A cost incurred in the past that is not relevant to any current decision is classified as a(n) :

Correct AnswerverifiedShow Answer

Dizzy employees a certified operator for each of its 35 rides.Each operator is paid $20 per hour.The cost of the certified operators would best be described as a:

Correct AnswerverifiedShow Answer

Manufacturing overhead includes:

Correct AnswerverifiedShow Answer

The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:

Correct AnswerverifiedShow Answer

A cost that differs from one month to another is known as a sunk cost.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
a. _TB2627_00 b. _TB2627_00 c. _TB2627_0...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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