Question :
71. Which of the following NOT an example of a cost : 1233814
71. Which of the following is NOT an example of a cost that varies in total as the number of units produced changes? A. Electricity per KWH to operate factory equipmentB. Direct materials costC. Insurance premiums on factory buildingD. Wages of assembly worker
72. Which of the following describes the behavior of the variable cost per unit? A. Varies in increasing proportion with changes in the activity levelB. Varies in decreasing proportion with changes in the activity levelC. Remains constant with changes in the activity levelD. Varies in direct proportion with the activity level
73. The graph of a variable cost when plotted against its related activity base appears as a: A. circleB. rectangleC. straight lineD. curved line
74. A cost that has characteristics of both a variable cost and a fixed cost is called a: A. variable/fixed costB. mixed costC. discretionary costD. sunk cost
75. Which of the following costs is a mixed cost? A. Salary of a factory supervisorB. Electricity costs of $2 per kilowatt-hourC. Rental costs of $5,000 per month plus $.30 per machine hour of useD. Straight-line depreciation on factory equipment
76. For purposes of analysis, mixed costs are generally: A. classified as fixed costsB. classified as variable costsC. classified as period costsD. separated into their variable and fixed cost components
77. Ingram Co. manufactures office furniture. During the most productive month of the year, 3,500 desks were manufactured at a total cost of $84,400. In its slowest month, the company made 1,100 desks at a cost of $46,000. Using the high-low method of cost estimation, total fixed costs are: A. $56,000B. $28,400C. $17,600D. cannot be determined from the data given
78. Given the following cost and activity observations for Wondrous Company’s utilities, use the high-low method to calculate Wondrous’ variable utilities costs per machine hour.
Cost
Machine Hours
March
$3,100
15,000
April
2,700
10,000
May
2,900
12,000
June
3,500
18,000
A. $10.00B. $.67C. $.63D. $.10
79. Given the following cost and activity observations for Johnson Company’s utilities, use the high-low method to calculate Johnson’s fixed costs per month.
Cost
Machine Hours
January
$52,600
20,000
February
75,100
29,000
March
57,000
22,000
April
64,000
24,500
A. $2,600B. $50,000C. $12,500D. $5,000
80. Given the following cost and activity observations for Sanchez Company’s utilities, use the high-low method to calculate Sanchez’s variable utilities costs per machine hour.
Cost
Machine Hours
May
$8,300
15,000
June
10,400
20,000
July
7,200
12,000
August
9,500
18,000
A. $10.00B. $.60C. $.40D. $.52
