Review Quiz for Chapter 3

Review Quiz for Chapter 3 - Quiz Chapter 3 1. If the level...

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Page 1 Quiz – Chapter 3 1. If the level of activity increases within the relevant range: A) variable cost per unit and total fixed costs also increase. B) fixed cost per unit and total variable cost also increase. C) total cost will increase and fixed cost per unit will decrease. D) variable cost per unit and total cost also increase. 2. In describing the cost equation, Y = a + bX, "a" is: A) the dependent variable, cost. B) the independent variable, the level of activity. C) the total fixed costs. D) the variable cost per unit of activity. 3. Quartz Manufacturing Company has developed the following overhead cost formulas: Overhead Cost Cost Formulas Insurance . ............................. $400 Depreciation. ........................ $900 Maintenance materials . ........ $0.15 per machine hour Utilities. ................................ $600 plus $0.20 per machine hour Based on these cost formulas, the total overhead cost expected for Quartz Manufacturing Company if 1,500 hours are worked is:
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Review Quiz for Chapter 3 - Quiz Chapter 3 1. If the level...

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