Question :
51. Speedy CouriersSpeedy Couriers documented the miles driven and total vehicle : 1291701
51. Speedy CouriersSpeedy Couriers documented the miles driven and total vehicle costs for the past five months as follows:
Number of miles
Total vehicle costs
January
1,600
$3,600
February
2,000
4,600
March
1,500
3,450
April
1,800
3,900
May
2,200
4,500
Refer to the Speedy Couriers information above. Using the high/low method, what is the cost equation to predict total vehicle costs? A. Y = $985 + $1.64xB. Y = $4,500 + $2.05xC. Y = $560 + $2.30xD. Y = $1,200 + $1.50x
52. Speedy CouriersSpeedy Couriers documented the miles driven and total vehicle costs for the past five months as follows:
Number of miles
Total vehicle costs
January
1,600
$3,600
February
2,000
4,600
March
1,500
3,450
April
1,800
3,900
May
2,200
4,500
Refer to the Speedy Couriers information above. Using the high/low method, if Speedy expects to drive 1,750 miles in June, what will be expected total vehicle costs? A. $3,825.00B. $4,585.00C. $8,087.50D. $3,855.00
53. Denver ManufacturingDenver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows:
Number ofunits produced
Totalmaintenance costs
January
5,400
$4,800
February
6,600
5,180
March
4,900
4,500
April
5,600
4,900
May
6,000
5,490
Refer to the Denver Manufacturing information above. Using the high/low method, what is the cost equation to predict total maintenance costs? A. Y = $90 + $.90xB. Y = $2,540 + $.40xC. Y = $1,646 + $.5824xD. Y = $2.50x – $11,320
54. Denver ManufacturingDenver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows:
Number ofunits produced
Totalmaintenance costs
January
5,400
$4,800
February
6,600
5,180
March
4,900
4,500
April
5,600
4,900
May
6,000
5,490
Refer to the Denver Manufacturing information above. Using the high/low method, if Denver expects to produce 5,000 units in June, what will be budgeted total maintenance costs? A. $4,590B. $4,558C. $4,540D. $4,363
55. When comparing a “pre-tax cost” and an “after-tax cost”, which of the following is true? A. The after-tax cost will be greater than the pretax cost.B. They will be the same amount.C. The pre-tax cost will be greater than the after-tax cost.D. The higher the tax rate, the lower the difference in the amount between them.
56. The after-tax benefit of a taxable cash receipt can be calculated as follows: A. After-tax benefit = Pretax receipt ´ tax rateB. After-tax benefit = Pretax receipt ´ (1 – tax rate)C. After-tax benefit = Pretax receipt ´ (1 + tax rate)D. After-tax benefit = Pretax receipt ¸ tax rate
57. After-tax income can be calculated as follows: A. After-tax income = Pretax income ´ tax rateB. After-tax income = Pretax income ¸ (1 – tax rate)C. After-tax income = Pretax income ´ (1 + tax rate)D. After-tax income = Pretax income ´ (1 – tax rate)
58. The manager of a company is considering a special project that will increase sales revenue by $27,500 without affecting costs. If the company has a tax rate of 40%, what will be the after-tax income? A. $16,500B. $11,000C. $27,500D. $38,500
59. Blossom Products is considering a special project that will increase sales revenue by $127,000 without affecting costs. If the company has a tax rate of 40%, what will be the after-tax income? A. $ 50,800B. $ 76,200C. $127,000D. $203,200
60. Putnam Distributors is contemplating whether or not to accept a special order. Putnam wishes to have after-tax cash receipts of $54,000 if they accept the order. If Putnam has a tax rate of 40%, what is the price the customer should be charged for their order? A. $32,400B. $21,600C. $90,000D. $54,000
