Midterm2Bus21Sp09.pdf

# Midterm2Bus21Sp09.pdf - Managerial Accounting Exam 2...

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Unformatted text preview: Managerial Accounting Exam 2 Version A Chapters 41516 I . A is a fixed cost; B is a variable cost. During the current year the level of activity has decreased but is still within the relevant range. We would expect that: A. The cost per unit of A has remaineci unchanged. B. The cost per unit of B has decreased. C. The cost per unit ofA has decreased. @)ffre cost per unit of B has remained unchanged. 2. Salaries of accounts receivable clerks when one clerical worker is needed for every 750 accounts receivable is an example of a: A. fixed cost B. step-variable cost CCi mixed cost D. curvilinear cost 3. For an automobile manufacturer, the cost of a driver's side air bag purchased from a supplier and installed in every automobile would best be described as a: A. fixed cost. B. mixed cost. C. step-variable cost. ,Dlvariable cost. 4. In the standard cost formula Y: a * bX, what does the "Y" represent? @total cost B. total fixed cost C. total variable cost D. variable cost per unit 5. In the standard cost formula Y: a * bX, what does the "a" represent? A. total cost G. totat fixed cost C. total variable cost D. variable cost per unit 6. Which of the following would usually be considered a discretionary fixed cost for a soft drink bottling company? A. the cost of advertising its products B. the cost of fire insurance on its factory building @ depreciation on its manufacturing equipment D. both A and B above 7. Contribution margin is computed as sales revenue minus: jt 6\$rariaute expenses T'Utr C. cost of goods sold-J. cost of goods manufactured 8. Which of the following approaches to preparing an income statement calculates gross margin? Traditional Approaoh A. Yes 6 Yes C. No D. No Contribution Approaoh Yes No Yes No 9. Edde Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Produotion volume Direot materials ........ ! ! !...... Direot labor Manufacturing overhead ................ 4,000 units 5,000 units \$291,200 \$364,000 \$219,600 \$274,500 \$320,400 \$343,000 ost per unit is: U incruding \$10,000 in-r*ea costs. Assuming that this ""TitTiJTlilfff;i:t**1H":f*1*:"tT:reases to 25,000 direct labor hours, Tirso Company would expect to incur total factory overhead costs of: 6rC,CetJf 20,,;,1; -- L,9 2-,6 y,2q,se * V2,,i0u 1 1. At an activity level of 8,400 machine-hours in a month, Braughton Corporation's total variable maintenance and repair cost is \$697,284 and its total fixed maintenance and repair cost is \$464,100. What would be the total maintenance and repair cost, both fixed and variable, at an activity level of 8,500 units in a month? Assume that w 1t28q' {n1oi1.t_ \iK lb K{+r \:K,'tLV XK fiSJ' i-i'ib,tit \K,tb 12. You are applying the scatter graph method and find that the regression line you have drawn passes through data point with the following coordinates: l;90 units and \$1qqq0. The regression line passes through the Y axis at the \$4,000 point. \I4rich of the following is the cost 6rmula that represents the slope of this line?point....
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## This note was uploaded on 09/08/2010 for the course BUS 21 at San Jose State University .

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Midterm2Bus21Sp09.pdf - Managerial Accounting Exam 2...

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