chpt 2 quiz act 212

At an activity level of 8,500 machine-hours in a month, Nooner Corporation's total variable production engineering cost is $748,850 and its total fixed production engineering cost is $177,760. What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 8,800 machine-hours in a month? Assume that this level of activity is within the relevant range. (Do not round intermediate calculations.) $107.95 $107.41 $108.30 $108.48

$108.30

At a sales volume of 41,000 units, Thoma Corporation's sales commissions (a cost that is variable with respect to sales volume) total $561,700. To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 44,600 units? (Assume that this sales volume is within the relevant range.) $13.70 $14.39 $13.39 $13.07

$13.70

The following cost data pertain to the operations of Swestka Department Stores, Inc., for the month of July. Corporate headquarters building lease $83,200 Cosmetics Department sales commissions--Northridge Store $5,830 Corporate legal office salaries $66,800 Store manager's salary-Northridge Store $12,400 Heating-Northridge Store $16,700 Cosmetics Department cost of sales--Northridge Store $33,800 Central warehouse lease cost $6,500 Store security-Northridge Store $19,000 Cosmetics Department manager's salary--Northridge Store $4,940 The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store? $156,500 $83,200 $44,570 $47,140

$156,500

Nikkel Corporation, a merchandising company, reported the following results for July: Sales $433,000 Cost of goods sold (all variable) $174,800 Total variable selling expense $25,600 Total fixed selling expense $15,100 Total variable administrative expense $14,800 Total fixed administrative expense $31,400 The contribution margin for July is: $217,800 $171,300 $386,500 $258,200

$217,800

Management of Modugno Corporation is considering whether to purchase a new model 370 machine costing $463,000 or a new model 240 machine costing $399,000 to replace a machine that was purchased 5 years ago for $439,000. The old machine was used to make product M25A until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 240 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product M25A. Management also considered, but rejected, the alternative of simply dropping product M25A. If that were done, instead of investing $399,000 in the new machine, the money could be invested in a project that would return a total of $443,000. In making the decision to invest in the model 240 machine, the opportunity cost was: $439,000 $443,000 $399,000 $463,000

$443,000

1) Aberge Company's manufacturing overhead is 30% of its total conversion costs. If direct labor is $105,000 and if direct materials are $27,900, the manufacturing overhead is: $19,500 $76,500 $13,333 $45,000

$45,000

Inspection costs at one of Iuliano Corporation's factories are listed below: Units produced Inspection cost February 916 $ 17,312 March 971 $ 17,700 April 922 $ 17,365 May 906 $ 17,210 June 928 $ 17,394 July 913 $ 17,280 August 930 $ 17,432 September 870 $ 16,750 October 909 $ 17,238 Management believes that inspection cost is a mixed cost that depends on units produced. Using the high-low method, the estimate of the fixed component of inspection cost per unit produced is closest to: (Round the intermediate calculations to two decimal places.) $17,220.00 $16,751.00 $17,211.00 $8,562.89

$8,562.89

Supply costs at Lattea Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,652 $28,566 April 11,448 $28,400 May 11,980 $28,824 June 12,500 $28,902 July 11,712 $28,627 August 11,198 $28,226 September 11,992 $28,825 October 11,683 $28,583 November 11,831 $28,708 Management believes that supply cost is a mixed cost that depends on client-visits. Use the high-low method to estimate the variable and fixed components of this cost, Compute the variable component first, rounding off to the nearest whole cent. Then compute the fixed component, rounding off to the nearest whole dollar. Those estimates would be closest to: (Round your Variable cost per unit to 2 decimal places.) $2.21 per client-visit; $28,628 per month $1.10 per client-visit; $15,344 per month $0.56 per client-visit; $21,897 per month $0.52 per client-visit; $22,402 per month

0.52 per client-visit; $22,402 per month

2) A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3,210 and is paid at the beginning of the first year. Eighty percent of the premium applies to manufacturing operations and twenty percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage? Product Period $3,210 $0 $2,568 $642 $1,712 $428 $856 $214

Product Period $856 $214

Corio Corporation reports that at an activity level of 2,700 units, its total variable cost is $124,632 and its total fixed cost is $68,096. Required: For the activity level of 2,800 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range. (Round your "Average cost" to 2 decimal places and other answers to the nearest dollar amount.) (a) Total variable cost $ (b) Total fixed cost $ (c) Total cost $ (d) Average variable cost $ per unit (e) Average fixed cost $ per unit (f) Average total cost $ per unit

a) 124632 b) 68096 c) 192728 d) 44.51 e) 24.32 f) 68.83