# Quiz 3 - 1 Figure 3-9 The following cost formula was...

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1.   Figure 3-9. The following cost formula was developed using monthly data for a retail clothing store. Total cost = \$75,620 + (\$242 number of customers) See Figure 3-9: The term \$242   Student  Response Value Correct  Answer Feedback 1.  is the intercept 0%      2. is the variable rate 100%      3.  is the dependant variable 0%      4.  is the independent variable 0%      Score: 0.5/0.5    2.   Which of the following is an example of a discretionary fixed cost?   Student  Response Value Correct  Answer Feedback 1. executive travel costs 100%      2.  cost of leasing machinery 0%      3.  license fees for fleet of vehicles 0%

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Student  Response Value Correct  Answer Feedback 4.  depreciation on factory building 0%      Score: 0.5/0.5    3.   Figure 3-4. Botana Company constructed the following formula for monthly utility cost. Total utility cost = \$1,200 + (\$8.10 labor hours) Assume that 775 labor hours are budgeted for the month of April. See Figure 3-4: Calculate the total utility cost for the month of April   Student  Response Value Correct Answer Feedback 1.  \$1,200.00 0%      2. \$7,477.50 100%      3.  \$5,077.50 0%      4.  \$6,277.50 0%      General  Feedback: SUPPORTING CALCULATIONS: \$7,477.50 = \$1,200 + (\$8.10 775) Score: 0.5/0.5    4.   The high-low method   Student  Response Value Correct Answer Feedback 1. all of the answers are correct 100%
Student  Response Value Correct Answer Feedback 2.  has the advantage of objectivity 0%      3.  can be affected by the presence of outliers 0%      4.  is not as accurate as other methods 0%      Score: 0.5/0.5    5.   Step costs   Student  Response Value Correct Answer Feedback 1. increase in direct proportion to increases in output 0%      2.  remain the same within the relevant range 0%      3.  none of the answers are correct 0%      4.  have an increased fixed component 100%

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Student  Response Value Correct Answer Feedback at specified intervals Score: 0/0.5    6.   Figure 3-5. Maxwell Company makes treadmills. The company controller wants to calculate the fixed and variable costs associated with the janitorial costs incurred in the factory. Data for the past four months were collected. Month Janitorial costs Machine hours       September \$ 11,000 575 October   11,400 610 November   10,200 510 December   10,725 550 See Figure 3-5: What would Maxwell Company’s estimate of total janitorial cost be at a level of 625 machine hours?   Student  Response Value Correct Answer Feedback 1.  \$7,500 0%      2.  \$4,080 0%      3. \$11,580 100%      4.  \$6,120 0%      General  Feedback: SUPPORTING CALCULATIONS: \$4080 + (\$12 625) Score: 0.5/0.5    7.   Figure 3-9. The following cost formula was developed using monthly data for a retail clothing store.
Total cost = \$75,620 + (\$242 number of customers) See Figure 3-9: The term “number of customers”   Student  Response Value Correct  Answer Feedback 1. is the

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Quiz 3 - 1 Figure 3-9 The following cost formula was...

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