ACCT 2302 exam 2 V2_2009 (2)

ACCT 2302 exam 2 V2_2009 (2) - Acct 2302 Exam 2_ v2, Ercan...

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Acct 2302 Exam 2_ v2, Ercan Sinmaz 1 1. 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 remained unchanged. B) The cost per unit of B has decreased. C) The cost per unit of A has decreased. D) The cost per unit of B has remained unchanged. 2. Which costs will change with an increase in activity within the relevant range? A) Unit fixed cost and total fixed cost B) Unit variable cost and total variable cost C) Unit fixed cost and total variable cost D) Unit fixed cost and unit variable cost 3. 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 C) mixed cost D) curvilinear cost 4. Limousine Conversion Company purchases ordinary Cadillacs, cuts them in half, and then adds a middle section to the vehicles to create stretch limousines. With respect to the number of cars converted, the cost of the Cadillacs purchased for conversion by Limousine Conversion Company would best be described as a: A) fixed cost B) mixed cost C) step-variable cost D) variable cost 5. In the standard cost formula Y = a + bX, what does the “b” represent? A) total cost B) total fixed cost C) total variable cost D) variable cost per unit 6. Shipping cost at Junk Food Imports is a mixed cost with variable and fixed components. Past records indicate total shipping cost was $18,000 for 16,000 pounds shipped and $22,500 for 22,000 pounds shipped. Assuming that this activity is within the relevant range, if the company plans to ship 18,000 pounds next month, the expected shipping cost is: A) $18,500 B) $20,400 C) $19,500 D) $24,000 7. Daar Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.
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Acct 2302 Exam 2_ v2, Ercan Sinmaz 2 Production volume. ........................ 2,000 units 3,000 units Direct materials. ............................. $188,400 $282,600 Direct labor. ................................... $91,800 $137,700 Manufacturing overhead. ............... $110,400 $127,800 The best estimate of the total monthly fixed manufacturing cost is: A) $75,600 B) $390,600 C) $469,350 D) $548,100 8. Edde Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume. ........................ 4,000 units 5,000 units Direct materials. ............................. $291,200 $364,000 Direct labor. ................................... $219,600 $274,500 Manufacturing overhead. ............... $320,400 $343,000 The best estimate of the total variable manufacturing cost per unit is: A) $127.70 B) $150.30 C) $22.60 D) $72.80 9. Farah Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.
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This note was uploaded on 07/01/2011 for the course ACCT 52548 taught by Professor Charleslewis during the Spring '10 term at HCCS.

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ACCT 2302 exam 2 V2_2009 (2) - Acct 2302 Exam 2_ v2, Ercan...

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