Any help would be greatly appreciated.

Any help would be greatly appreciated.

ATTACHMENT PREVIEW

1.
Abco Bread sells a box of bagels with a contribution margin of 62.5%.
Its fixed costs are
\$150,000 per year.
How much sales dollars does Abco Bread need to break-even per year if
bagels are its only product?
a.
\$93,750
b.
\$150,000
c.
\$240,000
d.
\$90,000
2.
Showroom, Inc. collected the following production data for the past month:
Units produced
Total Cost
1,600
\$44,000
1,300
38,000
1,500
45,000
1,100
33,000
If the high-low method is used, what is the monthly total cost equation?
a.
Total cost = \$8,800 + (\$22 x units produced)
b.
Total cost = \$11,000 + (\$20 x units produced)
c.
Total cost = \$0 + (\$30 x units produced)
d.
Total cost = \$6,600 + (\$24 x units produced)
3.
FH is a non-profit organization that captures stray deer from residential communities.
Fixed costs
are \$10,000.
The variable cost of capturing each deer is \$10.00 each.
FH is funded by a local
philanthropy in the amount of \$32,000 for 2012.
How many deer can FH capture during 2012?
a.
2,200
b.
3,200
c.
4,200
d.
2,000
4.
Pointer Company’s accountants use the high-low method to estimate costs.
They provided the
following information for its sales and production of one product:
Which month’s data will the accountants use to estimate costs?
a.
January and May
b.
February and April
c.
January and April
d.
February and May
5.
Smith Worldwide sells a single product with a contribution margin of \$12 per unit and fixed costs
of \$24,000.
How much is Martin’s break even point?
a.
2,500 units
b.
\$12,000
c.
\$24,000
d.
2,000 units
6.
The following monthly data are available for Winters. Inc. which produces only one product:
Selling price per unit, \$42; Unit variable expenses, \$14; Total fixed expenses, \$42,000; Actual
sales for the month of June, 4,000 units.
How much is the margin of safety for the company for
June?
a.
\$70,000
b.
\$105,000
c.
\$63,000

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d.
\$2,500
7.
Wimple, Inc. produced 200 items and had the following costs:
Hourly labor, \$5,000;
depreciation, \$2,000; materials, \$2,000; and rent, \$3,000.
How much is the variable cost per
unit?
a.
\$60
b.
\$50
c.
\$25
d.
\$35
8.
A division sold 200,000 calculators during 2011:
Sales
\$2,000,000
Variable costs:
Materials
\$200,000
Order processing
150,000
Billing labor
110,000
Delivery costs
180,000
Selling expenses
60,000
Total variable costs
700,000
Fixed costs
1,000,000
How much is the contribution margin per unit?
a.
\$1.00
b.
\$3.50
c.
\$8.50
d.
\$6.50
9.
What effect do changes in activity have on fixed costs per unit?
a.
No effect.
Fixed costs stay the same at every activity level
b.
An inverse effect
c.
A directly proportional effect
d.
It depends on the particular level of activity
10. What is cost behavior analysis?
a.
It is a study of how a firm’s costs relate to competitors’ costs
b.
It is a study of how specific costs respond to activity level changes
c.
It is a variation of the high-low method
d.
It is an assumption that all costs increase over time
11. Regardless of the system used in departmental cost analysis:
a.
Direct costs are allocated, indirect costs are not
b.
Indirect costs are allocated, direct costs are not
c.
Both direct and indirect costs are allocated
d.
Neither direct nor indirect costs are allocated
e.
Total departmental costs will always be the same
12. A company rents a building with a total of 100,000 square feet which are evenly divided between
two floors.
The space on the first floor is considered twice as valuable as that on the second floor.
The total monthly rent for the building is \$30,000.
How much of the monthly rental expense
should be allocated to a department that occupies 10,000 square feet on the first floor?
a.
\$6,000
b.
\$5,000

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