ACCT 206 Ch 5 Practice Exam

ACCT 206 Ch 5 Practice Exam - Garrison 13e Practice Exam...

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Print these pages. Answer each of the following questions, explaining your answers or showing your work, as appropriate, and then compare your solutions to those provided at the end of the practice exam. 1. An analysis of past janitorial costs indicates that janitorial cost is an average of \$0.80 per machine-hour at an activity level of 80,000 machine-hours and \$1.00 per machine-hour at an activity level of 64,000 machine-hours. Assuming that this activity is within the relevant range, what is the total expected janitorial cost if the activity level is 70,000 machine-hours? 2. Das Doors Inc. has recorded the following costs for utilities at various volumes of production: Production Volume Total Utilities Costs 600,000 \$700,000 400,000 500,000 200,000 300,000 Prepare a scattergraph to estimate the cost function for utilities costs. 3. Petrarca Company incurred \$20,000 to ship 2,000 pounds and \$27,500 to ship 3,000 pounds. If the company ships 2,500 pounds, what is its total expected shipping expense?

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This note was uploaded on 10/17/2011 for the course ACCT 206 taught by Professor Dr.zachry during the Spring '11 term at Nicholls State.

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ACCT 206 Ch 5 Practice Exam - Garrison 13e Practice Exam...

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