MSQ-01 - Activity Cost & CVP Analysis (Final)

6 total production costs of prior periods for a

Info icon This preview shows pages 6–8. Sign up to view the full content.

6. Total production costs of prior periods for a company are listed as follows. Assume that the same cost behavior patterns can be extended linearly over the range of 3,000 to 35,000 units and that the cost driver for each cost is the number of units produced. Production in units per month 3,000 9,000 16,000 35,000 Cost X $23,700 $52,680 $86,490 $178,260 Cost Y 47,280 141,840 252,160 551,600 What is the average cost per unit at a production level of 8,000 units for cost X? A . $5.98 B. $5.85 C. $7.90 D. $4.83 7. Ultra Vogue Co. sells 50,000 units of “yo” a top-of-the-line garden sprinkler. These were taken from the company’s records: Accounts receivable, P129,000. Contribution margin ratio, 49%. Days sales outstanding, 15 days. Profit for the period was P485,040. The ending receivables balance is the average balance during the year. Assume a 360-day year. All sales are on credit. Determine the company’s break-even revenue. A . P2,106,122 B. P1,032,000 C. P3,096,000 D. P1,517,040 MSQ-01 Page 6
Image of page 6

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

8. Sago Co. uses regression analysis to develop a model for predicting overhead costs. Two different cost drivers (machine hours and direct materials weight) are under consideration as the independent variable. Relevant data were run on a computer using one of the standard regression programs, with the following results: Coefficient Machine hours Direct materials weight Y intercept 2,500 4,600 B 5.00 2.60 R 2 0.70 0.50 What regression equation should be used? A . Y = 2,500 + 5.0X C. Y = 4,600 + 2.6X B. Y = 2,500 + 3.5X D. Y = 4,600 +1.3X
Image of page 7
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern