Answer multiple choice questions by showing your work.

Which of the following isnottrue?

Mixed costs are comprised of both fixed costs and variable costs, and as a result, mixed costs increase proportionately with an increase in activity level.

Mixed costs change in total, but not proportionately with the change in activity level.

An electricity bill is an example of mixed costs. The fixed portion represents the cost of having the service available and the variable cost is reflective of actual customer usage.

Mixed costs are also known as semi-variable costs.

As production manager, Mr. B is asked to track the manufacturing cost per unit on the factory floor. Total manufacturing costs were $91000 before considering factory maintenance salaries of $11000 and $53000 of factory depreciation. How much is the calculation of manufacturing cost per unit if 500 units had been produced in the current quarter?

$204

$288

$182

$310

Sheridan Manufacturing Company reported the following year-end information: beginning work in process inventory, $79800; cost of goods manufactured, $979200; beginning finished goods inventory, $49400; ending work in process inventory, $70600; and ending finished goods inventory, $39200. How much is Sheridan's cost of goods sold for the year?

$979200

$989400

$969000

$998600

Sunland provided the following information from its accounting records for 2020:

Expected production 30300 labor hours

Actual production 29000 labor hours

Budgeted overhead $1478640

Actual overhead $1428640

How much is the overhead application rate if Sunland bases the rate on direct labour hours?

$49.26 per direct labour hour

$47.15 per direct labour hour

$48.80 per direct labour hour

$50.99 per direct labour hour

Brad Sheridan Corporation sells two types of computers; one is designed for audio applications and the other for video applications. Sheridan incurs $309400 in fixed costs

Per-unit data on the two products is presented blow:

Unit data Audio computer Video computer

Selling price $1540 $1760

Variable costs 1090 1180

Contribution margin $450 $580

Sales mix 80% 20%

How many audio computers will be sold at the break-even point?

481

130

520

120