# Question 44the sum of the costs necessary to effect a

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Question: 44The sum of the costs necessary to effect a one-unit increase in theactivity level is a(n)A.Marginal cost.B.Incremental cost.C.Differential cost.D.Opportunity cost.
Question: 45Scott Company uses the following formula for annual maintenance costs:Total cost = \$6,000 + \$0.70 per machine hourThe current month’s budget is based on planned machine time of 30,000 hours.Monthly maintenance cost included in this budget is
Question: 46Jacob Corp. wishes to determine the fixed portion of its maintenanceexpense (a semivariable expense), as measured against direct labor hours, for the first3 months of the year. The inspection costs are fixed; the adjustments necessitated byerrors found during inspection account for the variable portion of the maintenancecosts. Information for the first quarter is as follows:Direct Labor Hours Maintenance ExpenseJanuary34,000\$610
February31,000\$585March34,000\$610What is the fixed portion of Jacob’s maintenance expense, rounded to the nearestdollar?
Question: 47Management has prepared a graph showing the total costs of operatingbranch warehouses throughout the country. The cost line crosses the vertical axis at\$200,000. The total cost of operating one branch is \$350,000. The total cost ofoperating ten branches is \$1,700,000. For purposes of preparing a flexible budgetbased on the number of branch warehouses in operation, what formula should be usedto determine budgeted costs at various levels of activity?
Question: 48Parker Company pays each member of its sales staff a salary as well as acommission on each unit sold. For the coming year, Parker plans to increase allsalaries by 5% and to keep unchanged the commission paid on each unit sold.Because of increased demand, Parker expects the volume of sales to increase by 10%.How will the total cost of sales salaries and commissions change for the coming year?A.Increase by 5% or less.B.Increase by 10%.C.Increase by more than 10%.D.Increase by more than 5% but less than 10%.
Question: 49Ace, Inc., estimates its total materials handling costs at two productionlevels as follows:CostGallons\$160,000 80,000\$132,000 60,000What is the estimated total cost for handling 75,000 gallons?
D.\$150,000Question: 50Production levels are expected to increase within the relevant range.What are the anticipated effects on the following?Fixed Costs Variable Costsper Unitper Unit

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