Any help would be greatly appreciated.

Any help would be greatly appreciated.

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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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