Question :
78.Window Shine provides window cleaning service. Information concerning costs and : 1302726
78.Window Shine is provides window cleaning service. Information concerning costs and number of windows cleaned for three months during 2014 appear below:
MonthActivityCost
May18,000 windows $84,000
July21,000 windows 94,500
September20,400 windows 94,800
Using the high-low method, what is the amount of total fixed costs?
A.$10,500
B.$3,000
C.$21,000
D.$78,857
79.Princeton offers a large range of undergraduate courses. The University is interested in determining the cost equation for the facilities cost as a function of student credit hours so that it can more accurately budget its facilities costs as enrollment grows. Information for the high and low cost semesters and volumes for last 5 years appears below:
Semester Student Credit Hours Facilities Cost
Spring 2014160,000$750,000
Fall 2017140,000$660,000
Using the high-low method, with student credit hours as the activity driver, what is the equation for facilities cost (FC) as a function of student credit hours?
A.FC = $4.50 / student credit hour
B.FC = $1.14 / student credit hour
C.FC = $30,000 + $4.50 / student credit hour
D.FC = $568,182 + $0.22 / student credit hour
80.A cost is $11,000 at 1,000 units, $12,000 at 2,000 units, and $13,000 at 3,000 units. Using the high-low method, how much is the fixed portion of these costs?
A.$1,000
B.$10,000
C.$20,000
D.The answer depends on the actual activity.
81.Which of the following methods provides the most accurate predictions of future costs?
A.Account analysis.
B.Scattergraphs.
C.High-low method.
D.Regression analysis.
82. Which of the following correctly describes fixed and variable cost behavior as total volume increases?
A.Unit fixed costs stay the same and unit variable costs increase.
B.Total fixed costs stay the same and total variable costs increase.
C.Unit fixed costs decrease and total variable costs decrease.
D.Unit fixed costs decrease and unit variable costs decrease.
83.Past relationships between cost and activity may not be a useful basis for estimating future costs
A.if most of a company’s costs are variable.
B.the company is able to accurately estimate its cost behavior.
C.if the cost is a mixed cost.
D.if future activity levels are expected to be beyond the relevant range.
84.Which of the following methods requires the most professional judgment in classifying costs?
A.Scattergraph
B.Regression analysis
C.Account analysis
D.High-low method
85.Each point on the scattergraph represents one pair of
A.cost and activity values.
B.variable cost and revenue values.
C.fixed cost and revenue values.
D.revenue and activity values.
86.Carpet Renewal dyes carpets for residential customers. The company is interested in estimating fixed and variable costs. The following data are available for the month of June when 420 carpets were dyed:
Office rent $ 1,250
Depreciation – equipment 900
Cleaning supplies 5,140
Hourly wages 11,000
Transportation (variable) 3,600
Owner’s salary 3,100
Total $24,990
Using account analysis, how much is estimated variable cost per carpet?
A. $47.00
B. $38.43
C. $59.50
D. $52.12
87.Lawn Cut Perfection provided data concerning the costs incurred to mow residential lawns for which customers pay $45 per mowing. Data for the past 7 months are as follows:
JanuaryFebruaryMarchAprilMayJuneJuly
Number of lawns mowed200110150100220120210
Mowing cost$12,900$8,120$10,200$8,200$13,060$8,400$13,280
How much is the estimated variable cost of mowing one lawn using the high-low method?
A.$43.00
B.$40.50
C.$44.90
D.$51.60
