Question :
68.The range of activity for which estimates and predictions likely : 1302725
68.The range of activity for which estimates and predictions are likely to be accurate is the
A.incremental range.
B.margin of safety.
C.relevant range.
D.range of opportunity.
69.A cost is $34,500 at an activity level of 23,000 units, and $42,000 at an activity level of 28,000 units. What type of cost is this?
A.Fixed costs
B.Variable costs
C.Mixed costs
D.Sunk costs
70.Duradyne, Inc. has total costs of $18,000 when 2,000 units are produced and $26,000 when 5,200 units are produced. During March, 4,000 units were produced and sold for $8 each. If the high-low method is used, how much is the variable cost per unit?
A.$2.50
B.$0.40
C.$2.00
D.$4.00
71.Ranger Pressure Cleaners has total monthly costs of $5,800 when 3,200 units are produced and $6,425 when 3,700 units are produced. If the high-low method is used, how much is the estimated total monthly fixed cost?
A.$625
B.$6,113
C.$7,250
D.$1,800
72.C-Drive Components has collected the following production data for the past four months:
Units producedTotal cost
7,000 $16,500
10,000 22,500
8,500 17,750
9,000 21,000
If the high-low method is used, what is the monthly total cost equation?
A.Total cost = $2,500 + ($2.00 × units produced)
B.Total cost = $3,750 + ($2.75 × units produced)
C.Total cost = $1,500 + ($2.00 × units produced)
D.Total cost = $500 + ($2.25 × units produced)
73.Management of MRC Enterprises has provided the following output from Excel®:
SUMMARY OUTPUT
Statistics
Multiple R0.8939072
R Square0.7990702
Adjusted R20.7488377
Standard Error10744.516
Observations6
ANOVAdfSSMSFSignificance F
Regression11836429183642915.907450.0162864
Residual44617785211544463
Total52298208
CoefficientsStd Errort StatP-valueLower 95%Upper 95%Lower 95%Upper 95%
Intercept47757.0534958.301.366110.24366-49302.764144816.8849302.144816.8
X Variable 16.3641.5957983.988410.016281.934059010.7953521.934010.79535
What is the estimated cost for a production level of 1,200 units?
A.$1,730
B.$55,394
C.$7,636
D.There is not enough information provided to determine the answer..
74.Total costs were $38,400 when 16,000 units were produced and $41,100 when 17,200 units were produced. If the high-low method is used, how much are estimated total costs for a production level of 17,100 units?
A.$39,750
B.$40,861
C.$41,040
D.$40,875
75.Hardigree Insurance has collected the following information over the last six months.
MonthUnits producedTotal costs
March2,000 $6,700
April3,200 9,400
May2,200 7,100
June3,000 9,500
July2,800 8,000
August2,100 6,600
Using the high-low method, how much is the variable cost per unit?
A.$2.25
B.$2.55
C.$2.80
D.$3.14
76.Hardigree Insurance has collected the following information over the last six months.
MonthUnits producedTotal costs
March2,000 $6,700
April3,200 9,400
May2,200 7,100
June3,000 9,500
July2,800 8,000
August2,100 6,600
Using the high-low method, how much is the total fixed cost?
A.$2,300
B.$2,200
C.$4,400
D.$7,910
77.Hardigree Insurance has collected the following information over the last six months.
MonthUnits producedTotal costs
March2,000 $6,700
April3,200 9,400
May2,200 7,100
June3,000 9,500
July2,800 8,000
August1,100 6,600
Using the high-low method, what is the estimated total cost in a month when 3,100 units are produced?
A.$9,175
B.$6,975
C.$4,732
D.$6,932
