Question
7. The following data pertains to activity and the cost of cleaning and maintenance for two recent months: Month 1 Month 2 Production volume 2,400
7.
The following data pertains to activity and the cost of cleaning and maintenance for two recent months:
Month 1 | Month 2 | |||
Production volume | 2,400 | units | 3,100 | units |
Cleaning and maintenance costs | $1,000 | $1,210 |
The best estimate of the total month 1 variable cost for cleaning and maintenance is: (Do not round intermediate calculations.) |
$220 | |
$420 | |
$720 | |
$20 |
8.
At an activity level of 8,500 machine-hours in a month, Nooner Corporation's total variable production engineering cost is $708,900 and its total fixed production engineering cost is $168,210. What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 8,900 machine-hours in a month? Assume that this level of activity is within the relevant range. (Do not round intermediate calculations.) |
$101.95 | |
$101.41 | |
$102.48 | |
$102.30 |
9.
Supply costs at Lattea Corporation's chain of gyms are listed below:
Client-Visits | Supply Cost | |
March | 11,660 | $28,574 |
April | 11,456 | $28,408 |
May | 11,988 | $28,832 |
June | 13,300 | $28,918 |
July | 11,720 | $28,635 |
August | 11,206 | $28,234 |
September | 12,000 | $28,833 |
October | 11,691 | $28,591 |
November | 11,839 | $28,716 |
Management believes that supply cost is a mixed cost that depends on client-visits. Using the high-low method to estimate the variable and fixed components of this cost, those estimates would be closest to:(Round your Variable cost per unit to 2 decimal places.) |
$2.02 per client-visit; $28,636 per month | |
$.91 per client-visit; $17,471 per month | |
$0.37 per client-visit; $24,024 per month | |
$0.33 per client-visit; $24,529 per month |
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