Exam 2 November 19 review questions

Exam 2 November 19 review questions - Managerial Accounting...

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Managerial Accounting Exam 2 November 19 Review questions. Bold face denotes answers Chapter 5 review questions 1. The following data pertain to activity and costs for two recent months: Assuming that these activity levels are within the relevant range, the mixed costs for November were: A. $40,000 B. $35,000 C. $25,000 D. $20,000 2. At an activity level of 10,000 units, variable costs totaled $35,000 and fixed costs totaled $20,800. If 16,000 units are produced and this activity is within the relevant range, then: A. total cost would equal $89,280. B. total unit cost would equal $4.80 . C. fixed cost per unit would equal $5.58. D. total costs would equal $55,800 3. Reddy Company has the following cost formulas for overhead: Page  1  of  11
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Managerial Accounting Exam 2 November 19 Review questions. Bold face denotes answers Based on these cost formulas, the total overhead cost at 600 machine hours is expected to be: A. $4,500 B. $5,200 C. $5,620 D. $5,340 4. You are applying the scattergraph method and find that the regression line you have drawn passes through a data point with the following coordinates: 1,000 units and $9,600. The regression line passes through the Y axis at the $600 point. Which of the following is the cost formula that represents the slope of this line? A. Y = $600 + $9.00X B. Y = $600 + $9.60X C. Y = $9,600 + $.06X D. None of the above is true While the Hi-low method is not statistically accurate, it is part of the syllabus. 5. Electrical costs at one of Gotch Corporation's factories are listed below: Page  2  of  11
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Managerial Accounting Exam 2 November 19 Review questions. Bold face denotes answers Management believes that electrical cost is a mixed cost that depends on machine-hours. Using the high-low method to estimate the variable and fixed components of this cost,
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Exam 2 November 19 review questions - Managerial Accounting...

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