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sample%20exam%202 - Sample Exam 2 Summer 2011 Student 1 At...

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Sample Exam 2 Summer 2011 Student: ___________________________________________________________________________ 1. At an activity level of 9,600 machine-hours in a month, Montgomery Corporation's total variable production engineering cost is $402,336 and its total fixed production engineering cost is $570,240. What would be the total production engineering cost, both fixed and variable, at an activity level of 9,900 machine-hours in a month? Assume that this level of activity is within the relevant range. A. $101.31 B. $99.51 C. $98.24 D. $99.78 2. In October, Haldeman Corporation, a manufacturing company, reported the following financial data: The company had no beginning or ending inventories. The contribution margin for October was: A. $5,000 B. $183,000 C. $264,000 D. $282,000
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3. Callaham Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $115.80 per unit. The best estimate of the total variable cost per unit is: A. $84.50 B. $100.90 C. $106.90 D. $105.70 4. Stewart Company is attempting to classify costs according to their cost behavior. Data concerningactivity and costs are listed below: If Stewart Company sells 1,150 units in March and this activity is within the relevant range, the expected total cost would most likely be closest to: A. $2,610.50 B. $1,774.00 C. $4,343.92 D. $4,384.50 5. Grundmann Inc. reports that at an activity level of 6,500 machine-hours in a month, its total variable inspection cost is $487,110 and its total fixed inspection cost is $326,040. What would be the total variable inspection cost at an activity level of 6,600 machine-hours in a month? Assume that this level of activity is within the relevant range. A. $494,604 B. $331,056 C. $487,110 D. $813,150
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A. insurance on the headquarters building. B. power to run production equipment. C. supervisory salaries. D. depreciation of factory facilities. 7. The following data pertains to activity and utility costs for two recent years: Using the high-low method, the cost formula for utilities is: A. $1.50 per unit B. $8,000 plus $0.50 per unit C. $1.25 per unit D. $6,000 plus $0.75 per unit 8. Bell Company has provided the following data for maintenance costs: Using the high-low method, the cost formula for maintenance cost would be: A. $2.00 per machine hour B. $1.625 per machine hour C. $18,000 plus $0.50 per machine hour D. $24,000 plus $0.50 per machine hour 9. Wertman Corporation produces and sells a single product with the following characteristics: The company is currently selling 3,000 units per month. Fixed expenses are $215,000 per month. Consider each of the following questions independently.
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sample%20exam%202 - Sample Exam 2 Summer 2011 Student 1 At...

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