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The following data hastened for the low Menit SO 2.000 3. 300 3020 April 400 3 May 40 bruary Manti The variable per hours ASUS 1864 CS 41 Am Company has the following information available Selling price per unit 100 Variable cost per unit Fixed costs per year 600.000 Expected sales per year 20.000 unite If variable costs to per unit, what is the come forw year! A) 20.000 1.500.000 S. D700.000 3) The following data medical Company Uw the high-low me January 324100 2.000 February 39,000 2200 March 35.250 2.750 April 36.400 3.500 May 4.160 3.000 The expected total costat an operating level of 2.850 hours is A) 2.600 B) 5347 $33.300 DS 2018 Oikes Corporation wells dess at 180 per desk. The variable costs are $372 per desk. Totalled costs for the periode 556.540 The bleven poin dessin A) 1228 D230 3 7 The following dalhas been med for Tiger Company. Use the Nigh-low method Math January 2000 February March 2750 April M 1300 May 1900 The cost function is where Y-Talcosand X - Number of hours A) Y-521.30 - 512X Y-510,112586X OY-526672.51 BAX DJ Y53.000 51000x AM The Rondweth were as follows LOCA w Ci Standard RS New De X Santandem 0 20 The cours A) SZNO 9) Moonlight More.co Y550.000 50X Where 10 Xember of days occupancy In the current year, Mongols days to the west year. Margit espect an occupancy level of days. All you will remain in the same relevant range the car is the pected the camera A) 575.000 13730 Di.600 10 The following dates beled for The Company the highwa January 534400 2000 February 39,000 March April 36.00 May 441 3.900 The fixed costs A) 510112 35.00 DS 2300 3500 11) Suppose Holiday Inn How has tomated costs applicable to its rooms 512 100-room hotel Average daily room rentre per room and variable con 510 for uch noch rented. It operates 365 days per year. What is the point in the Al 100.000 MO C) 120.000 D 34.000 13 12) Win Corporation sells deska 540 per desk. The variable costs and with each des $372. Total fixed costs for the periode $556.500. The contribution margine des A) 5108 5128 D:5195 B) 551 300 who why A. Dimin.000 Home Homme Chay They Det Total Conti Food 15) Destione That Coats What is the pray for the varios A) Donaco more than expected C) Hotel room rent than expected Di Fondo un expected 15) Assume 222 Company has the following information available Selling priceperunt 5100 Variable cost per unit Fixed costs per year 000 Expected sales per year 20.000 fined costs in 200.000, what is the best! A) 12.000 13.000 Dinone of the above 16) Suppose Holiday Inn Hotel and costs applicable to vis room of 12 million for its 300-room hotel Average daily room rent are $50 per room and average variable coste 10 for each room rented. It operates days per year. What percent of occupancy is needed to breakeven B) 270 D) M3% A) 15 97) 17) What happens when the cost driver activity level decreases within the relevant range! A) variable costs per unit decrease dixed cost decrease C) total fixed costs increase total variable costs decrease 16 15. What happens when the co-driver activity level increases within the relevant ange! Al fixed costs per unit decrease B) variable costs per un decrease roual variable costs decrease D) total fixed costs increase SHORT ANSWER. Write the word or phrase that best complete achatement or the in 19) The cost of the Maintenance Department at Forest Manufacturing hasslways been charged to the production departments based on the number of employees Recently, analysis of possible cost drivers was performed which indicated that the feet of space may also be a predictor of costs to be led to each production departmen. The Maintenance Department cost is $1.000.000. The following data is will Production Departments Dept Dept. Y Number of Employees Dept. z 100 250 50 Square Feet of Space 15,000 25.000 10,000 Required: Determine the amount of the maintenance department out that should be allocated to Department X if the cost driver used is (A) number of employees and (b) square feet of MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answer the question, 20) Company ZZZ has the following information available 201 Selling price per unit 5100 Variable cost per unit 545 Fixed costs per year 5420,000 Expected sales per year 20,000 units What is the expected operating income for a year? A) $480,000 B) 51,580,000 C) 5680,000 Dy none of the above 21) Assume the sales price is $34 per unit and the variable costs 519 per unit. The break-even point is 21) 12,000 units. What are total fixed costs? A) $530,000 B) $180,000 C) $190,000 D) 5340,000 22) 22) HugME Company produces dolls. Each doll sells for $20.00. Variable costs are $14.00 per unit. the break-even volume in dollars is 51.446,000, then the total fixed costs for the period are C) $433,800 D) 5516,425 B) 51.446,000 A) $361.500 23) 23) The following information is available for Donald Corporation: Total fixed costs Variable costs per unit Selling price per unit $133.500 $99 $154 If total fixed costs increased to $194.850, then the break-even volume in dollars would increase by B) 3434 C) 12.3% D) 10.0% A) 18.45 MULTIPLE CHOICE Choose the one alternative that best completes the statement or awwers the question 27) Medina Hospital has variable costs of 75% of total revenues and find out of 50 per year. There are 40.000 patient-days estimated for next year. What is the wag daily evene per patient necessary to breakeven? A) 51.000 B) $20,000 C) 5.000 D) $250 26 28) The Ford Company used regression analysis to predict the annual cost of utilities. The results we as follows: Utilities Cost Explained by Direct Lator Hours Constant 2,500 Standard error of Yestimate 595 R-Squared 08650 No. of observations 30 Degrees of freedom 28 X Coefficient Standard error of coefficient 0.919 2.039 where Y - Total utilities cost and X-Number of direct labor The linear cost function is hours A) Y5595 $0.865X C)Y - $2.500 52.037X B) Y52,500.50.865X DY-52.037. $2.500X 29) 29) Mercy Hospital has total variable costs of B0% of total revenues and fixed costs of $20 million per year. There are 20.000 estimated patient-days for next year. What is the break-even point expressed in total revenue! A) S12.5 million B) $10 million C) 5100 million D) $20 million 303 30) A fraternity held a party. The following budget was prepared for 25 expected attendees Room rental Food Entertainment Decorations Total Costs 5150 310 150 25 $685 Twenty-five people attended the party. The following costs were incurred: 5240 300 145 Room rental Food Entertainment Decorations Total Costs 25 $760 Using the management-by-exception rule, which of the following costs deserves further examination? A) food B) room rental C) entertainment D) decorations 31) Skoda Company makes metal gw for business and residences. There are made of sweet metal, which the owner paints by hand. The owner la concerned that he does not have a good measure of support couts for the signs Cutrently, he predicts supported to be percent of the cont of materials Close investigation of the business reveals that $10 per direct labor hour am plausible and reliable support cost mesure, Skoda Company has the following indormation available $700 Small Sign Late Materials cost $300 Direct labor hours 5 11 Using cost of materials as the cost driver what amount of support consigned to the mall sign? A) $210 B) 37 C) 590 Dy 50 32) Cat Company makes metalls for businesses and residences. These are made of sheet metal, which the owner paints by hand. The owner is concemed that he does not have a good measure of support costs for the signs Currently, he predicts support costs to be 10 percent of the cost of materials. Close investigation of the business reveals that $10 per direct labor lours are plausible and reliable support cost measure Cat Company has the following information available: 12) Small Sign $300 5 Large Siya $700 11 Materials cost Direct labor hours Using direct labor hours as the cost driver, what amount of support costs is assigned to the small sign? B) 5110 C) $200 D) $50 A) 5160 33) 33) Palmer Inc currently produces 110.000 units at a cost of $440,000. The cost is variable. Next year Palmer Inc. expects to produce 115,000 units. Palmer's relevant range for production is 100.000 to 120,000 units. If 115,000 units are produced next year, what is the expected variable cost? A) $440,000 B) 5460,000 C) $430,000 D) 5420,000 34) 34) Merkey Motel's cost function is given as Y = $50,000 $750X Where: Y = annual custodial cost X = number of guest-days of occupancy In the current year, Merkey Motel has 8.000 guest days. In the next year, Merkey Motel expects an occupancy level of 10,000 guest days (All costs next year will remain in the same relevant Targe as the current year.) What is the expected fixed custodial cost for next year? A) 562,500 B) $75,000 ) $7.50 D) 550.000 35) 35) Assume the sales price is $100 per unit and the total fixed costs are $75,000. The break-even volume in dollar sales is $250,000. What is the variable cost per unit? A) S125 B) $100 530 D) 570 30) Last year, XYZ Company sold 10,000 units that cost $40,000 to produce. This cost included 4.000 in fixed computer resource costs. $6,000 in fixed labor cost and 3.00 per until for communications resource costs. XYZ Company expects to sell 20,000 units next year. Resource costs are expected to be in the same relevant range next year. What are the total estimated costs for next year? A) 570,000 B) 580,000 C) 575.000 D) 584.000 37) Sunrise Motel's cost function is given as Y-$50,000 $7.50X Where: Yannual custodial cost Xw number of guest-days of occupancy In the current year, Sunrise Motel has 8,000 guest days. In the next year, Sunrise Motel expects an occupancy level of 10,000 guest days. (All costs next year will remain in the same relevant range as the current year) What is the expected total custodial cost for next year? A) $137,500 B) 550,000 C) 5125,000 D) 562.500 38) 38) What happens when the cost-driver level increases within the relevant range? A) total variable costs decrease B) total fixed costs remain unchanged C) variable costs per unit increases D) fixed costs per unit increases 39) 39) The Rock Company used regression analysis to predict the annual cost of utilities. The results were as follows: Utilities Cost Explained by Direct Labor Hours Constant 2.500 Standard error of Y estimate 595 R-Squared 0.8650 No. of observations 30 Degrees of freedom 28 x Coefficient 2.037 Standard error of coefficient 0.917 B) $2,500 D) none of the above The variable cost per direct labor hour is A) $595 C) $2.037

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