This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Chapter 5 Practice Quiz 1. Weston, Inc.’s total fixed costs are $60,000 and total variable costs are $23,200 at 4,000 units. Weston's relevant range is 2,000 to 10,000 units. What are Weston's total expected costs at 6,000 units? A. $83,200 C. $94,800 B. $124,800 D. $113,200 2. Which of the following statements is true? A. Total fixed costs decrease as the activity level increases. B. Variable costs are constant per unit and increase in total as the activity level increases. C. Total variable costs are constant within the relevant range. D. Both A and B. 3. Harrison, Inc. has the following activity and costs for maintenance: Machine Hours Maintenance Cost August 650 $3,700 September 1,000 $5,000 October 1,250 $6,200 November 700 $4,100 December 450 $2,600 Using the high-low method, what are estimated maintenance costs at 800 machine hours? A. $4,175 C. $4,040 B. $3,600 D. $4,200 4. Argis Manufacturing Company is considering moving its manufacturing facilities to Scotland. If this is done, Argis’ direct labor cost per unit of output will decline and its total administrative...
View Full Document
This test prep was uploaded on 04/22/2008 for the course ACC 2304 taught by Professor Robinson during the Spring '08 term at Baylor.
- Spring '08
- Managerial Accounting