Question
34 . An activity analysis has shown that the number of components added to Product X and Product Y is the cost driver for support
34. An activity analysis has shown that the number of components added to Product X and Product Y is the cost driver for support costs. Support costs are $15 per component. Product X has 5 components and Product Y has 7 components. What amounts of support costs should be assigned to Product X and Product Y?
Product X Product Y
A) $6.67 $13.33
B) $40 $40
C) $90 $150
D) $75 $105
35. To estimate the monthly maintenance cost for the maintenance department in a hospital, the following monthly costs are available:
Monthly Expense Costs
Supervisor Salary Expense $4,000
Depreciation ExpenseMaintenance Equipment $6,000
Repairs ExpenseMaintenance Equipment $4,000
Supplies Expense $8,000
Wages ExpenseMaintenance Workers $12,000
The Supervisor Salary Expense and the Depreciation Expense are fixed costs. The remaining expenses are variable costs. There are 2,000 patient days in a month, which is the cost driver for maintenance costs. Estimate the cost function where Y is the monthly maintenance cost and X is the variable cost per patient day.
A) Y = $10 + $12X
B) Y = $10,000 + $12X
C) Y = $8,000 + $24X
D) Y = $20,000 + $12,000X
36. When examining the output from regression analysis, the goodness of fit measure is labeled ________ by most computer programs.
A) X coefficient
B) constant
C) standard error of estimate
D) R2
37. Presented below is the production data for six months showing the mixed costs incurred by Curry Company.
Month Cost Units
July $5,890 4,100
August $4,500 3,125
September $7,480 6,300
October $9,000 6,750
November $9,750 7,500
December $7,336 6,600
Curry Company uses the high-low method to analyze mixed costs. The cost function is ________ where Y= Total Cost and X= Number of units.
A) Y = $440 + $1.12X
B) Y = $300 + $1.16X
C) Y = $440 + $1.20X
D) Y = $750 + $1.20X
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