Question : 89.Sweet Time Candies projects its factory rent to be $8,000 : 1302670

 

89.Sweet Time Candies projects its factory rent to be $8,000 in August when 4,000 pounds of candy are expected to be produced. If rent is a fixed cost, and if production is expected to increase to 6,000 units in September, what is the expected cost of rent in September?

A.$12,000

B.$8,000

C.$7,000

D.Not enough information is provided to determine the answer.

 

90.Rincon Gifts had the following costs in May when 400 ceramic pots were produced: materials, $4,200; labor cost, $1,600; depreciation, $800; rent, $700; and other fixed costs, $500. Which one of the following is the correct cost for Rincon?

A.The fixed cost per unit is $3.75

B.The variable cost per unit is $14.50

C.The fixed cost per unit is $19.50

D.The total cost per unit is $14.50

 

91.Rincon Gifts had the following costs in May when 400 ceramic pots were produced: materials, $4,200; labor cost, $1,600; depreciation, $800; rent, $700; and other fixed costs, $500. If production changes to 500 units, which of the following costs will stay the same?

A.Variable cost per unit

B.Fixed cost per unit

C.Total variable cost

D.Total cost per unit

 

92.Rincon Gifts had the following costs in May when 400 ceramic pots were produced: materials, $4,200; hourly labor, $1,600; depreciation, $800; rent, $700; and other fixed costs, $500. If the production level changes to 500 units, how much will the total costs be?

A.$9,750

B.$7,800

C.$9,250

D.$1,950

 

93.Variable cost per unit is budgeted to be $8.00 and fixed cost per unit is budgeted to be $5.00 in a period when 4,000 units are produced. If production is actually 5,100 units, what is the expected total cost of the units produced?

A.$52,000

B.$60,800

C.$66,300

D.$40,800

 

94.In a period when anticipated production is 5,000 units, budgeted variable costs are $75,000 and budgeted fixed costs are $24,000. If 5,600 units are actually produced, what is the expected total cost?

A.$110,600

B.$84,000

C.$108,000

D.$88,394

 

95.In a period when anticipated production is 20,000 units, budgeted variable costs are $85,000 and budgeted fixed costs are $45,000. If 15,000 units are actually produced, what is the expected total cost?

A.$130,000

B.$97,500

C.$108,750

D.$118,750

 

96.Rom Generators is in the process of preparing a production cost budget for August. Actual costs in July for the production of 60 generators were:

 

Materials cost              $  5,200

Labor cost              2,600

Rent              1,200

Depreciation              1,700

Other fixed costs                 4,600

Total               $15,300

 

Materials and labor are the only variable costs. If production and sales are budgeted to increase to 70 generators in August, how much is the expected total cost on the August budget?

A.$17,850

B.$16,600

C.$9,100

D.$15,300

 

97.Rom Generators is in the process of preparing a production cost budget for August. Actual costs in July for the production of 60 generators were:

 

Materials cost              $  5,200

Labor cost              2,600

Rent              1,200

Depreciation              1,700

Other fixed costs                  4,600

Total               $15,300

 

Materials and labor are the only variable costs. If production and sales are budgeted to increase to 70 generators in August, how much is the expected total variable cost on the August budget?

A.$17,850

B.$16,600

C.$9,100

D.$15,300

 

98.Rom Generators is in the process of preparing a production cost budget for August. Actual costs in July for the production of 60 generators were:

 

Materials cost              $  5,200

Labor cost              2,600

Rent              1,200

Depreciation              1,700

Other fixed costs                  4,600

Total               $15,300

 

Materials and labor are the only variable costs. The company has estimated that it can increase sales to 70 generators in August if it changes the selling price of generators to $450 instead of the current $480 per unit. What is expected to occur to the cost per unit given the expected changes?

 

A.It will decline because fixed costs do not increase with increases in volume.

B.It will decline because selling price per unit declines.

C.It will increase because more units will be produced.

D.It will increase because fixed costs do not increase with increases in volume.

 

 

 

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