Question :
21. Howard Inc. provides temporary clerical services to local businesses. The : 1291698
21. Howard Inc. provides temporary clerical services to local businesses. The company has determined that total costs for a given month can be predicted by using the following formula:Total costs = $2,500 + $20xwhere “x” equals total direct labor hours for the month. If total direct labor hours for June are expected to be 600, what are total costs expected to be? A. $ 9,500B. $14,500C. $12,000D. $ 2,520
22. Logan Inc. plans to double its rental space next year which will increase its fixed costs by 30% while variable costs will remain the same. Current year costs are as follows:
Variable costs
$20 per unit
Fixed costs
$15,000
If next year production is expected to be 13,500 units, estimated total costs will be: A. $289,500.B. $270,000.C. $285,000.D. $250,500.
23. Jansen Inc. currently produces and sells 9,000 units per year with the following cost data:
Variable costs
$7 per unit
Fixed costs
$7,500
Next year, Jansen plans to increase its advertising budget, which will increase fixed costs by 7%. With increased advertising, the company expects the number of units produced and sold to increase by 12%. Determine the budgeted total cost for next year. A. $70,500B. $78,060C. $78,585D. $71,025
24. Bob’s BurgersBob’s Burgers currently produces and sells 12,000 burgers per month with the following costs:
Variable costs
$2.40 per unit
Fixed costs
$60,000
Bob has recently switched food suppliers and anticipates that variable costs will decrease by $0.35 per unit. In addition, Bob has renegotiated his store lease and fixed costs will be dropping by $8,000 per month. Refer to the information provided for Bob’s Burgers. What will be Bob’s new cost equation? A. Total costs = $60,000 + $2.75xB. Total costs = $60,000 + $2.05xC. Total costs = $8,000 + $0.35xD. Total costs = $52,000 + $2.05x
25. Bob’s BurgersBob’s Burgers currently produces and sells 12,000 burgers per month with the following costs:
Variable costs
$2.40 per unit
Fixed costs
$60,000
Bob has recently switched food suppliers and anticipates that variable costs will decrease by $0.35 per unit. In addition, Bob has renegotiated his store lease and fixed costs will be dropping by $8,000 per month. Refer to the information provided for Bob’s Burgers. Bob anticipates selling 12,300 burgers during the month of July. What will be estimated total costs during July? A. $77,215B. $88,800C. $76,600D. $85,825
26. Quality Products Inc. incurred total costs of $50,000 to produce 1,400 units. Variable costs are $15 per unit. What are estimated fixed costs? A. $21,000B. $71,000C. $48,600D. $29,000
27. Bixby Inc. expects total costs to be $75,000 when 500 units are sold and the variable cost is $18 per unit. Bixby expects to sell 750 units in July. What will be expected total costs in July? A. $75,000B. $79,500C. $66,000D. $88,500
28. Chadwick Ski LodgeChadwick Ski Lodge decides how many housekeepers it needs to hire based on expected hotel occupancy. The following shows the budgeted housekeeping costs per month at various occupancies:
Number of occupied rooms
Housekeeping costs
0 – 25
$11,500
26 – 40
23,000
41 – 55
34,500
Refer to the information provided for Chadwick Ski Lodge. What type of cost is housekeeping? A. Semi variableB. VariableC. StepD. Mixed
29. Chadwick Ski LodgeChadwick Ski Lodge decides how many housekeepers it needs to hire based on expected hotel occupancy. The following shows the budgeted housekeeping costs per month at various occupancies:
Number of occupied rooms
Housekeeping costs
0 – 25
$11,500
26 – 40
23,000
41 – 55
34,500
Refer to the information provided for Chadwick Ski Lodge. The number of occupied rooms during the month of January is expected to be between 41 and 55 at all times. For the month of January, what type of cost does housekeeping effectively become? A. FixedB. VariableC. StepD. Mixed
30. A cost that has both a fixed and variable component is called a(n): A. step cost.B. mixed cost.C. irrelevant cost.D. relevant cost.
