the most likely relevant facility-level cost driver for

19. Why is identification of a relevant range important? Choose all correct answers. a. It is required under GAAP. b. Cost behavior outside of the relevant range is not linear, which distorts CVP analysis. c. It directly impacts the number of units of product a customer buys. d. It is a cost that is incurred by a company that must be accounted for 20. At the high level of activity in November, 7,000 machine hours were run and power costs were $18,000. In April, a month of low activity, 2.000 machine hours were run and power costs amounted to $9,000. Using the high-low method, the estimated fixed cost element of power costs is 21. In CVP analysis, the term "cost" a. includes only manufacturing costs. b. means cost of goods sold. c. includes manufacturing costs plus selling and administrative expenses. d. excludes all fixed manufacturing costs. 22. Sales are $500,000 and variable costs are $330,000. What is the contribution margin ratio? 23. A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $240,000. The number of units the company must sell to break even is 29. During its most recent fired margin amounted to $1 have been reported as vana most recente Dover, incha statement for the year in question? 1.500.000 and pretax income was $400,000. W for the year anable costs in the company's contribution margin mo he had total sales of $3200,000. Contribution as $400.000. What amount should 30. During its most recent fiscal ye s most recent fiscal year. Doyer. Inc. had total sales of $3,200.000. Contribution a n amounted to $1.500.000 and pretax income was $400,000. What amount should ave been reported as fixed costs in the company's contribution margin income statement for the year in question? 31. Henderson Co. has fixed costs of $36.000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percent of sales? 32. A company has fixed costs of $320,000 and a contribution margin per unit of $15. If the Firm wants to earn a target $40,000 pretax income, how many units must be sold (rounded to the nearest whole unit)? Select cost information for Seacrest Enterprises and its expense is a mixed cost nexpense is a fixed cost necessary assumptions. Which of the following Select A Correct Answers A) Direct materials is a fixed cost and its expense is a Materials and unities expense are mixed cost both direct materials and rent expense are variable Dy Uties expense is a mixed cost and rent expan d able COSL is expense is a mixed cost and rent expense is av Cost-volume-profit analysis is based on necessary R evant range includes all po o ls arstvity that a company experience e price and variable per un mantan volume c. A constant sales mix in a multiproduct company. d. Tatal fixed costs are held constant e. Costs can be classified as variable or forced 26. If a firm's forecasted sales are $250,000 and its break-even sales are $190,000, the margin of safety in dollars is: $250,000 - $190,000= $60,000 margin of safety During March, a firm expects to its total sales to be $160,000, its total variable costs to be $95,000, and its total fixed costs to be $25,000. The contribution margin for March is: (160,000 - 25,000) - 95,000 = $40,000 135,000 28. Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income? Jayce Company Ine. Has the following information available Unit Selling Price of Kitchen Blender Variable Cost of Goods Sold per Blender Selling expense per Blender Administrative expense per Blender Total Fbxed Selling Expenses Total Fixed Administrative Costs Units Sold 3800 $200 $30 $12,000 $40.000 500 Prepare a Cost-Volume Profit Income Statement in Proper Format Harper Company manufactures we products Product F and Product he company experts to produce and sell 1.400 units of Product F and 1.800 units Product during the current year. The company uses activity-based conting to compute un product costs for enteral Data relating to the company's three activity cost pools are given below for the current year: Total Activity Product G 100 setups Product Product Activity Cost Pool Machine scans Total Cod Product S10.80080 setups 77.520 510 orders S75,920 2.240 hours Total 180 setups 1,520 orders Purchases orders 1,010 orders 3.600 hours 5,840 hour General Fac Factory Required: activity-based costing approach, determine the overhead cost per unit for each pro Bincasa All of these st recent fiscal year, Dover, Inc had total sales of $3.200.000. Contribution have been anted to $1.500.000 and pretax income was $400.000. What amount shou been reported as variable costs in the company's contribution margin statement for the year in question? During its most recent fiscal year, margin amounted to $1.500 30 During its most recent fiscal year. Dover Inc had total sales of $3 200.000 Contribution margin amounted to $1.500.000 and pretax income was $400.000. What amount should have been reported as fixed costs in the company's contribution margin income statement for the year in question? 31. Henderson Co. has fixed costs of $36.000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percent of sales? 32. A company has fixed costs of $320.000 and a contribution margin per unit of $15. If the Firm wants to earn a target $40,000 pretax income, how many units must be sold (rounded to the nearest whole unit)? 19. Why is identification of a relevant range important? Choose all correct answers. a. It is required under GAAP. b. Cost behavior outside of the relevant range is not linear, which distorts CVP analysis. c. It directly impacts the number of units of product a customer buys. d. It is a cost that is incurred by a company that must be accounted for 20. At the high level of activity in November, 7,000 machine hours were run and power costs were $18,000. In April, a month of low activity, 2.000 machine hours were run and power costs amounted to $9,000. Using the high-low method, the estimated fixed cost element of power costs is 21. In CVP analysis, the term "cost" a. includes only manufacturing costs. b. means cost of goods sold. c. includes manufacturing costs plus selling and administrative expenses. d. excludes all fixed manufacturing costs. 22. Sales are $500,000 and variable costs are $330,000. What is the contribution margin ratio? 23. A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $240,000. The number of units the company must sell to break even is 29. During its most recent fired margin amounted to $1 have been reported as vana most recente Dover, incha statement for the year in question? 1.500.000 and pretax income was $400,000. W for the year anable costs in the company's contribution margin mo he had total sales of $3200,000. Contribution as $400.000. What amount should 30. During its most recent fiscal ye s most recent fiscal year. Doyer. Inc. had total sales of $3,200.000. Contribution a n amounted to $1.500.000 and pretax income was $400,000. What amount should ave been reported as fixed costs in the company's contribution margin income statement for the year in question? 31. Henderson Co. has fixed costs of $36.000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percent of sales? 32. A company has fixed costs of $320,000 and a contribution margin per unit of $15. If the Firm wants to earn a target $40,000 pretax income, how many units must be sold (rounded to the nearest whole unit)? Select cost information for Seacrest Enterprises and its expense is a mixed cost nexpense is a fixed cost necessary assumptions. Which of the following Select A Correct Answers A) Direct materials is a fixed cost and its expense is a Materials and unities expense are mixed cost both direct materials and rent expense are variable Dy Uties expense is a mixed cost and rent expan d able COSL is expense is a mixed cost and rent expense is av Cost-volume-profit analysis is based on necessary R evant range includes all po o ls arstvity that a company experience e price and variable per un mantan volume c. A constant sales mix in a multiproduct company. d. Tatal fixed costs are held constant e. Costs can be classified as variable or forced 26. If a firm's forecasted sales are $250,000 and its break-even sales are $190,000, the margin of safety in dollars is: $250,000 - $190,000= $60,000 margin of safety During March, a firm expects to its total sales to be $160,000, its total variable costs to be $95,000, and its total fixed costs to be $25,000. The contribution margin for March is: (160,000 - 25,000) - 95,000 = $40,000 135,000 28. Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income? Jayce Company Ine. Has the following information available Unit Selling Price of Kitchen Blender Variable Cost of Goods Sold per Blender Selling expense per Blender Administrative expense per Blender Total Fbxed Selling Expenses Total Fixed Administrative Costs Units Sold 3800 $200 $30 $12,000 $40.000 500 Prepare a Cost-Volume Profit Income Statement in Proper Format Harper Company manufactures we products Product F and Product he company experts to produce and sell 1.400 units of Product F and 1.800 units Product during the current year. The company uses activity-based conting to compute un product costs for enteral Data relating to the company's three activity cost pools are given below for the current year: Total Activity Product G 100 setups Product Product Activity Cost Pool Machine scans Total Cod Product S10.80080 setups 77.520 510 orders S75,920 2.240 hours Total 180 setups 1,520 orders Purchases orders 1,010 orders 3.600 hours 5,840 hour General Fac Factory Required: activity-based costing approach, determine the overhead cost per unit for each pro Bincasa All of these st recent fiscal year, Dover, Inc had total sales of $3.200.000. Contribution have been anted to $1.500.000 and pretax income was $400.000. What amount shou been reported as variable costs in the company's contribution margin statement for the year in question? During its most recent fiscal year, margin amounted to $1.500 30 During its most recent fiscal year. Dover Inc had total sales of $3 200.000 Contribution margin amounted to $1.500.000 and pretax income was $400.000. What amount should have been reported as fixed costs in the company's contribution margin income statement for the year in question? 31. Henderson Co. has fixed costs of $36.000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percent of sales? 32. A company has fixed costs of $320.000 and a contribution margin per unit of $15. If the Firm wants to earn a target $40,000 pretax income, how many units must be sold (rounded to the nearest whole unit)