Horn_CH_10TB 13

A 17000 b 41000 c 21167 d 27000 answer b explanation

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Unformatted text preview: observation of cost driver 240 $ 6,800 114) What is the slope coefficient per machine-hour? A) $28.33 B) $0.05 C) $20.00 D) $25.00 Answer: C Explanation: C) S Diff: 2 T 4 AACSB: Analytical skills 115) What is the constant for the estimating cost equation? A) $2,000 B) $6,800 C) $8,000 D) $10,000 Answer: A Explanation: A) E Diff: 2 T 4 AACSB: Analytical skills 116) What is the estimate of the total cost when 300 machine-hours are used? A) $2,000 B) $4,000 C) $6,000 D) $8,000 Answer: D Explanation: D) y Diff: 3 T 4 AACSB: Analytical skills Answer the following questions using the information below: The Taranto Company uses the high-low method to estimate it's cost function. The information for 2008 is provided below: Machine -hours Costs Highest observation of cost driver 2,000 $225,000 Lowest observation of cost driver 1,000 $ 125,000 117) What is the slope coefficient per machine-hour? A) $125.00 B) $12.50 C) $10.00 D) $100.00 Answer: D Explanation: D) S Diff: 2 T 4 AACSB: Analytical skills 118) What is the constant for the estimating cost equation? A) $125,000 B) $225,000 C) $25,000 D) $0 Answer: C Explanation: C) E Diff: 2 T 4 AACSB: Analytical skills 119) What is the estimate of the total cost when 1,100 machine-hours are used? A) $125,000 B) $135,000 C) $150,000 D) $200,000 Answer: B Explanation: B) y Diff: 3 T 4 AACSB: Analytical skills Answer the following questions using the information below: For Carroll Company, labor-hours are 12,500 and wages $47,000 at the high point of the relevant range, and labor-hours are 7,500 and wages $35,000 at the low point of the relevant range. 120) What is the slope coefficient per labor-hour? A) $4.67 B) $3.76 C) $2.40 D) $0.42 Answer: C Explanation: C) S Diff: 2 T 4 AACSB: Analytical skills 121) What is the constant? A) $17,000 B) $12,000 C) $5,000 D) $41,750 Answer: A Explanation: A) C Diff: 2 T 4 AACSB: Analytical skills 122) What is the estimate of total labor costs at Carroll Company when 10,000 labor-hours are used? A) $17,000 B) $41,000 C) $21,167 D) $27,000 Answer: B Explanation: B) y Diff: 3 T 4 AACSB: Analytical skills Answer the following questions using the information below...
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