Managerial Accounting Sample Test 2 (1)

Managerial Accounting Sample Test 2 (1) - Sample Test 2...

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Sample Test 2 Student: ___________________________________________________________________________ 1. Maintenance costs at a Neller Corporation factory are listed below: Management believes that maintenance 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, these estimates would be closest to: A. $1.85 per machine-hour; $21,325 per month B. $3.77 per machine-hour; $15,648 per month C. $9.07 per machine-hour; $26,762 per month D. $0.27 per machine-hour; $26,071 per month Baaca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. 2. The best estimate of the total variable manufacturing cost per unit is: A. $82.00 B. $70.20 C. $56.70 D. $11.80
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3. A cost driver is: A. the largest single category of cost in a company. B. a fixed cost that cannot be avoided. C. a factor that causes variations in a cost. D. an indirect cost that is essential to the business. 4. Dabbs Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total monthly fixed manufacturing cost is: A. $737,950 B. $686,400 C. $274,000 D. $789,500 5. A clothing manufacturer incurred the following factory maintenance costs: 2,100 units produced with maintenance cost of $61,500, and 750 units produced with maintenance cost of $41,250. How much of the maintenance cost is made up of fixed cost? (Use the high-low method.) A. $11,181 B. $20,125 C. $30,000 D. $50,319 6. Carbert Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total cost to manufacture 4,300 units is closest to: A. $899,345 B. $951,160 C. $847,530 D. $915,010
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7. The following data for a production department relate to two accounting periods: The best estimate of the fixed departmental cost is closest to: A. $5,250 B. $59,500 C. $187,000 D. $246,500 Bacho Corporation reports that at an activity level of 5,400 units, its total variable cost is $416,934 and its total fixed cost is $142,560. 8. What would be the average fixed cost per unit at an activity level of 5,500 units? Assume that this level of activity is within the relevant range. A. $26.40
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Managerial Accounting Sample Test 2 (1) - Sample Test 2...

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