11. Okafor Company manufactures skis. The management accountant wants to calcula
ID: 2385107 • Letter: 1
Question
11.
Okafor Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected.
Month Lease Cost Machine Hours
April 21,000 550
May 16,500 420
June 19,000 510
July 22,230 570
Using the high-low method calculate the fixed cost of leasing:
1. 482
2. 516
3. 420
4. 456
12.
Okafor Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected.
Month Lease Cost Machine Hours
April 21,000 550
May 16,500 420
June 19,000 510
July 22,230 570
What would Okafor Company’s cost formula be to estimate the cost of leasing within the relevant range?
1. Total lease cost=456 + 38.20 x machine hours
2. Total lease cost=516 + 38.18 x machine hours
3. Total lease cost= 420 + 37.25 x machine hours
4. None of the answers are correct
13.
Okafor Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected.
Month Lease Cost Machine Hours
April 21,000 550
May 16,500 420
June 19,000 510
July 22,230 570
What would the estimate of Okarfor Company’s total lease cost be at level of 500 machine hours?
1. 19,606
2. 19,556
3. 16,464
4. 18,546
14.
Taran Company incurred the following costs for the months of January and Feruary.
Type of Cost January February
Insurance 5,000 5,000
Utilities 4,000 6,000
Depreciation 3,500 3,500
Materials 10,000 20,000
From the information about we can assume that?
1. Insurance and depreciation are fixed costs
2. Output decreased from January to February
3. Output stayed the same from January to February
4. Insurance is a mixed cost
15.
Taran Company incurred the following costs for the months of January and Feruary.
Type of Cost January February
Insurance 5,000 5,000
Utilities 4,000 6,000
Depreciation 3,500 3,500
Materials 10,000 20,000
Assume that output was 5,000 units in January and 10,000 units in Febuary, utility cost is a mixed cost and the fixed cost of utilities was 3,000. What was the variable rate per unit of output for utilities costs in January?
1. .20
2. .40
3. .60
4. .30
16.
Taran Company incurred the following costs for the months of January and Feruary.
Type of Cost January February
Insurance 5,000 5,000
Utilities 4,000 6,000
Depreciation 3,500 3,500
Materials 10,000 20,000
If output was 5,000 units in January and 10,000 units in Febuary we can assume that?
1. Utilities and materials are variable costs
2. Utilities, insurance, and depreciation are fixed costs
3. Insurance and depreciation are mixed costs
4. Materials is the only variable cost
17.
Foster Company makes power tools. The budgeted sales are 420,000, budgeted variable costs are 147,000, and budgeted fixed costs are 227,000.
What is the budgeted operation income?
1. 273,000
2. 227,500
3. 45,500
4. 374,500
5. 567,000
18.
Foster Company makes power tools. The budgeted sales are 420,000, budgeted variable costs are 147,000, and budgeted fixed costs are 227,000.
What is the variable cost ratio?
1. 35%
2. 54%
3. 89%
4. 19%
5. 50%
19.
Foster Company makes power tools. The budgeted sales are 420,000, budgeted variable costs are 147,000, and budgeted fixed costs are 227,000.
What is the breakeven point in sales dollars?
1. 350,000
2. 420,000
3. 650,000
4. 780,000
5. 567,000
20.
Foster Company makes power tools. The budgeted sales are 420,000, budgeted variable costs are 147,000, and budgeted fixed costs are 227,000.
What is the contribution margin?
1. 90,000
2. 183,000
3. 36,000
4. 273,000
5. 374,500
21.
Foster Company makes power tools. The budgeted sales are 420,000, budgeted variable costs are 147,000, and budgeted fixed costs are 227,000.
What is the contribution ratio?
1. 35%
2. 65%
3. 54%
4. 89%
5. 50%
Explanation / Answer
units
per unit
units
Jan
Produced
Feb
Produced
per unit
Insurance
5000
5000
1
5000
10000
0.5
utilites
4000
5000
0.8
6000
10000
0.6
Depreciation
3500
5000
0.7
3500
10000
0.35
material
10000
5000
2
20000
10000
2
Sale
420000
Varible Cost
147000
C
273000
less: Fixed cost
227000
operatin income'
46000
per unit Total varible cost 38.2 19100 Fixed cost 456 19556Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.