1. If the total amounts for mixed costs are $44,250 and $54,000 for activity levels of 5,000 and 8,000 units respectively, how much are total fixed costs?

A. $37,750 B. $10,500 C. $18,250 D. $28,000 E. $16,800

2. The cost to manufacture units by U Company last period was $34,500 for direct materials and $42,000 for direct labor and $12,750 for indirect labor and $2,250 for indirect materials and $1,725 for factory utilities and $525 for insurance on manufacturing equipment. How much was U Companys overhead for the period?

A. $37,275 B. $24,750 C. $15,000 D. $44,250 E. $17,250

3. Contribution margin is calculated as:

A. Revenues Variable Costs B. Fixed Costs + Variable Costs C. Gross Profit Operating Expenses D. Revenues Fixed Costs E. Fixed Costs Variable Costs

4. Which of the following is a disadvantage of the high-low method?

A. Only two points are used to develop the cost function.

B. A statistical method is used to mathematically derive the cost function.

C. The squared differences between actual observations and the line (cost function) are minimized.

D. All of the observations have an effect on the cost function.