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