gnbexam05 - GNB 11/e Practice Exam Chapter 5 Print these...

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GNB 11/e Practice Exam – Chapter 5 Print these pages. Answer each of the following questions, explaining your answers or showing your work, as appropriate, and then compare your solutions to those provided at the end of the practice exam. 1. An analysis of past janitorial costs indicates that janitorial cost is an average of $.80 per machine-hour at an activity level of 80,000 machine-hours and $1.00 per machine-hour at an activity level of 64,000 machine-hours. Assuming that this activity is within the relevant range, what is the total expected janitorial cost if the activity level is 74,000 machine-hours? 2. The Buffet Company has recorded the following costs for factory utilities at various volumes of production: Production Volume Total Factory Utilities Costs 200,000 $300,000 400,000 500,000 600,000 700,000 Using a scattergraph plot, estimate the cost function for utilities costs.
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3. Shipping expense is $20,000 for 2,000 pounds shipped and $27,500 for 3,000 pounds shipped. Assuming that this activity is within the relevant range, if the company ships 2,500 pounds, what is its expected shipping expense? 4.
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gnbexam05 - GNB 11/e Practice Exam Chapter 5 Print these...

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