Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mark uses the high-low method to estimate total monthly overhead costs for his auto garage. He uses service hours as the overhead cost driver. Data

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Mark uses the high-low method to estimate total monthly overhead costs for his auto garage. He uses service hours as the overhead cost driver. Data for the following months are shown below: Maintenance_hours Total_maintenance costs Jan. 120 $500 Feb. 80 $480 Mar. 140 $640 Apr. 160 $600 Using the high-low method, the total variable costs per maintenance hour are: $5.00. $1.50. $2.50. O $4.40. Alex sells Ice cream cones. He sells each cone for $2. Variable costs per unit are $1.75 and total fixed costs are $80. To make a profit of $145, she must sell this number of units: 200 units. O 500 units. O 750 units. 300 units. Adam uses the high-low method to estimate total monthly maintenance costs for his Rock & Soil company. He uses maintenance hours as the cost driver. Data for several months are shown: Maintenance_hours Total_maintenance costs Jan. 100 $500 Feb. 80 $480 Mar. 120 $640 Apr. 160 $600 Based on the high-low method, the total fixed costs are $500. $150. $360. $180. Tina sells Ice cream cones. She sells each cone for $2. Variable costs per unit are $1 and total fixed costs are $100. If she projects that she will sell 150 cones this summer, what is her margin of safety in dollars? $160. O $100. $300. $160. A product should be processed further if additional costs of further process are less than the additional revenues after further process. O True. False. Doug sells Ice cream cones. This summer, he sells each cone for $2. His variable costs amount to $0.75 each; total fixed costs are $80. Based on this information, his breakeven point in dollars is: $140. $128. $200. $75. The production capacity for SG company is 1400 units for this period. At the outset, the sales dept. generated a sales order of 1200 units. Price and cost data for the company are as follows: Unit selling price is $12, unit variable cost is $4, and total fixed costs are $5000. In the same period, the company received request for special orders for 150 units at $6 each. If SG accepts the special order, the result would be: $40 increase in profits. $40 decrease in profits. $300 increase in profits. $350 decrease in profits. MJ has capacity to produce 1400 units of X. The unit selling price of X is $12, unit variable cost is $4, and total fixed costs are $5000. During this period, MJ generated a sales order of 1300 units. Meantime, MJ has received a request for special order of 120 units at $6 each. If MJ accepts the order, profits would: O Increase by $80. O Decrease by $240. Increase by $60. Decrease by $100. Maggie Corp. has a selling price of $20 per unit, variable costs of $10 per unit, and fixed costs of $140,000. How many units must be sold to earn $50,000 profits? O 19,000. 24,000. 35,000. 2,334

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing Financial Resources

Authors: Mick Broadbent, John Cullen

3rd Edition

1138134546, 978-1138134546

More Books

Students also viewed these Accounting questions

Question

Where do attitudes come from? How do they change?

Answered: 1 week ago