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ACG 2071 Chapter 18 Adaptive learning (1).
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ACG 2071 Chapter 18 Adaptive learningA manufacturing company incurs rent costs of $12,500 per month. The company manufactured
250,000 units in May and 300,000 units in June. The cost per unit in May and June,
respectively, is: - ANS-$0.05 and $0.04
May: 12,500/250,000=0.05
June: 12,500/300,000=0.04
A manufacturing company incurs direct materials costs of $6 per unit. The total direct materials
cost is $______ when the company manufactures 2,000 units. - ANS-12000
6*2,000
Acme Manufacturing recently added another shift, which required the company to hire another
production supervisor. The supervisor's salary would be considered a: - ANS-step-wise cost
The cost accountant at Company C used the high-low method to determine a cost equation of
$14,000 plus $1.50 per unit. If the company plans to produce 200,500 units next month, then
the total estimated cost will be $. - ANS-314750
200,500*1.50+14,000
The ABC Company had its highest level of production in May when they produced 4,000 units at
a total cost of $110,000 and its lowest level of production in November when they produced
2,500 units at a total cost of $87,500. Using the high-low method, the estimated variable cost
per unit is $ - ANS-15
110,000-87,500/4,000-2,500
A manufacturing company incurs depreciation costs of $6,000 per month on manufacturing
machinery. The depreciation cost per unit is $______ when the company manufactures 2,000
units. - ANS-3
6,000/2,000
The ACC Tutoring Service provides tutoring to accounting students. The volume of tutoring is
low at the beginning of the semester and increases before exams. ACC had its highest level of
service in May when they provided 4,300 hours of tutoring at a total cost of $125,000 and it
lowest level of service in January when they provided 1,500 hours of tutoring at a total cost of
$55,000. Using the high-low method, the estimated fixed costs are $. - ANS-17500
, 125,000-55,000/4,300-1,500=25
125,000-4,300*25=
A company incurs $12,000 in direct labor costs when they produce 480 units and $12,500 in
direct labor costs when they produce 500 units. The direct labor cost per unit is $. - ANS-25
12,000+12,500/480+500
The amount by which a product's unit selling price exceeds its total unit variable cost is the: -
ANS-contribution margin per unit
A cost which reflects a stair-step pattern in costs is called a _______ cost - ANS-step-wise
The contribution margin ratio is interpreted as the percent of: - ANS-each sales dollar that
remains after deducting unit variable cost
The high-low formula to compute total costs is: - ANS-Fixed costs + (Variable cost per unit x
Units)
A company has sales of $125,000, variable costs of $45,000 and fixed costs of $30,000. The
contribution margin ratio is % - ANS-64
125,000-45,000=80,000
80,000/125,000=
The ACC Tutoring Service provides tutoring to accounting students. The volume of tutoring is
low at the beginning of the semester and increases before exams. ACC had its highest level of
service in May when they provided 4,300 hours of tutoring at a total cost of $125,000 and its
lowest level of service in January when they provided 1,500 hours of tutoring at a total cost of
$55,000. Using the high-low method, the estimated variable cost per hour is $ - ANS-25
125,000-55,000=70,000
4,300-1,500=2800
70,000/2800=
RST Company produces a product that has a variable cost of $6 per unit. The company's fixed
costs are $30,000. The product sells for $10 per unit. How many units must be produced to
break-even ? - ANS-7,500
10-6=4
30,000/4=
The ABC Company had its highest level of production in May when they produced 4,000 units at
a total cost of $110,000 and its lowest level of production in November when they produced
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