Question
34. An activity analysis has shown that the number of components added to Product A and Product B is the cost driver for support costs.
34. An activity analysis has shown that the number of components added to Product A and Product B is the cost driver for support costs. Support costs are $10 per component. Product A has 5 components and Product B has 10 components. What amounts of support costs should be assigned to Product A and Product B? Product A Product B A) $50 $100 B) $75 $150 C) $100 $50 D) $150 $75
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 $6,000 Supplies Expense $7,000 Wages ExpenseMaintenance Workers $10,000
The Supervisor Salary Expense and the Depreciation Expense are fixed costs. The remaining expenses are variable costs. There are 1,000 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 = $8 + $22X B) Y = $8,000 + $22,000X C) Y = $10,000 + $23X D) Y = $10,000 + $23,000X
36. When examining the output from regression analysis, the goodness of fit measure is labeled ________ by most computer programs. A) X coefficient B) R2 C) constant D) standard error of estimate
37, Presented below is the production data for six months showing the mixed costs incurred by Northeastern Company.
Month Cost Units July $5,890 4,100 August $4,012 3,200 September $7,480 6,300 October $9,000 7,500 November $5,800 5,800 December $7,336 6,600
Northeastern 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 = $440 + $1.20X C) Y = $300 + $1.16X D) Y = $7,850 + $0.132X
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