respuestastarea2 - When 10,000 units are produced, fixed...

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Unformatted text preview: When 10,000 units are produced, fixed costs are $14 per unit. Therefore, when 20,000 units are produced fixed costs a. will increase to $28 per unit. b. will remain at $14 per unit. c. will decrease to $7 per unit. d. will total $280,000. Answer : c Difficulty: 3 Objective: 4 67. When 10,000 units are produced, variable costs are $6 per unit. Therefore, when 20,000 units are produced a. variable costs will total $120,000. b. variable costs will total $60,000. c. variable unit costs will increase to $12 per unit. d. variable unit costs will decrease to $3 per unit. Answer : a Difficulty: 3 Objective: 4 Chapter 2 Page 10 68. Christi Manufacturing provided the following information for last month. Sales $10,000 Variable costs 3,000 Fixed costs 5,000 Operating income $2,000 If sales double next month, what is the projected operating income? a. $4,000 b. $7,000 c. $9,000 d. $12,000 Answer : c Difficulty: 3 (10,000 x 2) - ($3,000 x 2) - $5,000 = $9,000 Objective: 4 69. Kym Manufacturing provided the following information for last month. Sales $12,000 Variable costs 4,000 Fixed costs 1,000 Operating income $7,000 If sales double next month, what is the projected operating income? a. $14,000 b. $15,000 c. $18,000 d. $19,000 Answer : b Difficulty: 3 (12,000 x 2) - ($4,000 x 2) - $1,000 = $15,000 Objective: 4 70. Wheel and Tire Manufacturing currently produces 1,000 tires per month. The following per unit data apply for sales to regular customers: Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs $20 3 6 10 $39 The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires. What is the total cost of producing 2,000 tires? a. $39,000 b. $78,000 c. $68,000 d. $62,000 Answer : c Difficulty: 2 Objective: [($20 + $3 + $6) x 2,000 units] + ($10 x 1,000 units) = $68,000 Chapter 2 Page 11 4 71. Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers: Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs $50 5 14 10 $79 The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per unit cost of producing 2,000 bicycles? a. $79 per unit b. $158 per unit c. $74 per unit d. $134 per unit Answer : c Difficulty: 3 Objective: 4 [($50 + $5 + $14) x 2,000 units] + ($10 x 1,000 units) = $148,000 / 2,000 units = $74 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 72 AND 73. Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales to regular customers: Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs 72 $30 5 10 40 $85 The plant has capacity for 2,000 axles and is considering expanding production to 1,500 axles. What is the total cost of producing 1,500 axles? a. $85,000 b....
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respuestastarea2 - When 10,000 units are produced, fixed...

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