BMGT 221 cid 9 Exam Simulationi cid 9 Chap 6 MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question 1 If 125 000 units are produced total costs are 380 000 Total fixed costs for White Sails Inc cid 9 1 are 180 000 The variable cost per unit is A 3 04 unit cid 9 C B j 60 unit cid 9 C 1 44 unit cid 9 D 4 48 unit o t 0 o lO 00c 1 cid 9 j 9co oc0 TV 2 Fresh Best Friends produces 80 000 dog collars each month that give off a fresh scent to keep 2 cid 9 C your dog smelling clean between baths Total manufacturing costs are 240 000 Of this amount 180 000 are variable costs What are the total production costs when 100 000 collars are produced Assume both production levels are in the same relevant range 00 o 0 o 0 A 465 000 cid 9 B 300 000 cid 9 C cid 9 c cid 9 4o 000 cid 9 JC c 0O0 b cid 9 3 Using account analysis what type of cost is the local phone service which charges a flat fee cid 9 z 3 cid 9 A for unlimited local calls c xIlI1 cid 9 B Mixed cid 9 C Step cid 9 D Variable a 4 Sunny s Frozen Treats is a snow cone stand near the local park To plan for the future Sunny cid 9 wants to determine his cost behavior patterns He has the following information available cid 9 about his operating costs and the number of snow cones served t p vc cid 9 c v4 OL cid 9 c yov o o e vx i t 4 p Month January February March April May Tii Laflsd cid 9 Number of snow cones 7 200 8 000 6 000 6 600 7 700 I Z J J Total operating costs 4 700 5 800 4 600 4 500 5 100 Using the high low method the monthly operating costs if Sunny sells 7 500 snow cones in a cid 9 month are cid 9 A 4 500 cid 9 B 9 300 cid 9 C 1 000 cid 9 2 5 500 cid 9 Pb vc I 0O0X p QOQ tL OO S 00 000 o y I cid 9 V L07 I oOQ tO1 cid 9 0 C toe s4 cid 9 ifo cid 9 z OOLj 21OO cid 9 5 Your client s company wants to determine the relatk11ip ueLween its moliLilly uperatin cid 9 costs and a potential cost driver The output of regression analysis showed the following information Intercept Coefficient 89 620 X Variable 1 Coefficient 62 53 R square 0 9852 5 A What is the company s monthly cost equation Dy 62 53x 89 620 C y 89 620x 98 52 B y 98 52x 89 620 D y 89 620x 62 98 6 Suzy s Cool Treatz is a snow cone stand near the local park To plan for the future the owner cid 9 wants to determine her cost behavior patterns She has the following information available about her operating costs and the number of snow cones served 6 VW Total operating costs cvoo Ovi Number of snow cones 3 500 3 800 5 000 3 600 4 700 4 250 5 000 4 800 6 800 5 450 6 200 T3 50 cid 9 Suzy uses the high low method to determine her operating cost equation and sells 4 500 cones in a month for 3 00 each What would her operating income be if she prepared a contribution margin income statement for a month A 13 500 cid 9 B 730 cid 9 C 5 400 cid 9 D 8 100 aEv 4 cc c cid 9 SO 0 S 1 00 cid 9 8 00 cid 9 ptr 7 Preston Racquets manufactures tennis racquets The following data are available for last cid 9 7 J7 0 Month January cid 9 February March cid 9 April May T juiic cid 9 month Units in beginning inventory Units produced during year Units in ending inventory Sales commissions per racquet Fixed manufacturing overhead Fixed marketing expenses Selling price per racquet Variable manufacturing cost per racquet 0 1 200 racquets 200 racquets 10 00 48 000 12 000 200 110 EGG 0 a Using variable costing what is the variable cost of goods available for sale for last month A 110 000 cid 9 B 240 000 cid 9 C 12 000 D 132 000I 2 cid 9 7 cid 9 cid 9
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