Question 1-33 at 4 points and question 34 at 18 points
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following is a fixed cost for an automobile manufacturing plant?
A) administrative salaries
B) sales commissions
C) electricity used by assembly-line machines
D) windows for each car produced
band of normal activity or volume in which specific cost-volume relationships are maintained is
referred to as the:
A) relevant range
B) cost-allocation range
C) average range
D) cost driver range
3) When 10,000 units are produced, variable costs are $6 per unit. Therefore, when 20,000 units are
A) variable costs will total $60,000
B) variable unit costs will decrease to $3 per unit
C) variable unit costs will increase to $12 per unit
D) variable casts will total $120,000
4) Christi Manufacturing provided the following information for last month:
If sales double next month, what is the projected operating income?
5) Wheel and Tire Manufacturing currently produces 1,000 tirei per month. The following per unit
data apply for sales to regular customers:
Direct manufacturing labor
Variable manufacturing overhead
Fixed manufacturing overhead
Total manufacturing costs
The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires. What
is the total cost of producing 2,000 tires?