Question 44the sum of the costs necessary to effect a

Question: 44The sum of the costs necessary to effect a one-unit increase in the
activity 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 hour
The 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 maintenance
expense (a semivariable expense), as measured against direct labor hours, for the first
3 months of the year. The inspection costs are fixed; the adjustments necessitated by
errors found during inspection account for the variable portion of the maintenance
costs. Information for the first quarter is as follows:
Direct Labor Hours Maintenance Expense
January 34,000 $610

February 31,000 $585
March 34,000 $610
What is the fixed portion of Jacob’s maintenance expense, rounded to the nearest
dollar?
Question: 47Management has prepared a graph showing the total costs of operating
branch 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 of
operating ten branches is $1,700,000. For purposes of preparing a flexible budget
based on the number of branch warehouses in operation, what formula should be used
to determine budgeted costs at various levels of activity?
Question: 48Parker Company pays each member of its sales staff a salary as well as a
commission on each unit sold. For the coming year, Parker plans to increase all
salaries 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 production
levels as follows:
Cost Gallons
$160,000 80,000
$132,000 60,000
What is the estimated total cost for handling 75,000 gallons?

D. $150,000
Question: 50Production levels are expected to increase within the relevant range.
What are the anticipated effects on the following?
Fixed Costs Variable Costs
per Unit per Unit