2. Uninder Company uses the high-low method to estimate the cost function. The information for 2019 is provided below:

Machine-hours Labor Costs

Highest observation of cost driver 475 $22,000

Lowest observation of cost driver 250 $13,000

What is the slope coefficient?

A. $30.00 B. $32.00 C. $40.00 D. $43.75 E. $52.00

3. Identify the situation that will result in a favorable variance.

A. Actual costs are higher than budgeted costs.

B. Actual revenue is lower than budgeted revenue.

C. Actual income is lower than expected.

D. Actual expenses are higher than budgeted expenses.

E. Actual revenue is higher than budgeted revenue.

4. Managerial accounting information:

A. Is used mainly by external users.

B. Can be used for control purposes but not for planning purposes.

C. Is generally the only accounting information available to managers.

D. Involves gathering information about costs for planning and control decisions.

E. Has little to do with controlling costs.