AC 350 Stugy Guide
The cost of leasing production equipment is classified as: Prime Cost: No Product Cost: Yes
The wages of factory maintenance personnel would usually be considered to be: Indirect Labor: Yes Manufacturing OH: Yes
Manufacturing overhead consists of: all manufacturing costs, except direct materials and direct labor.
Which of the following costs would not be included as part of manufacturing overhead? Insurance on sales vehicles
Conversion costs consist of which of the following: Direct labor and manufacturing overhead cost.
Each of the following would be a period cost except: depreciation of a machine used in manufacturing.
Within the relevant range, variable cost per unit will: Remain constant.
The term “relevant range” means the range of activity over which: the assumptions about fixed and variable cost behavior are reasonably valid.
In describing the cost formula equation Y = a + bX, which of the following statements is correct? “a” is the fixed component.
Which of the following costs is often important in decision making, but is omitted from conventional accounting records? Opportunity Costs.
Gambrini Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $197.80 per unit.
Sales volume (units)
6,000
7,000
Cost of sales
$486,000
$567,700
Selling and administrative costs
$612,600
$624,400
The best estimate of the total monthly fixed cost is: $541,800
Edeen Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.
Production volume
5,000 units
6,000 units
Direct materials
$311,000
$373,200
Direct labor
$171,500
$205,800
Manufacturing overhead
$415,000
$427,800
The best estimate of the total variable manufacturing cost per unit is: $109.30
At an activity level of 9,200 machine-hours in a month, Nooner
The wages of factory maintenance personnel would usually be considered to be: Indirect Labor: Yes Manufacturing OH: Yes
Manufacturing overhead consists of: all manufacturing costs, except direct materials and direct labor.
Which of the following costs would not be included as part of manufacturing overhead? Insurance on sales vehicles
Conversion costs consist of which of the following: Direct labor and manufacturing overhead cost.
Each of the following would be a period cost except: depreciation of a machine used in manufacturing.
Within the relevant range, variable cost per unit will: Remain constant.
The term “relevant range” means the range of activity over which: the assumptions about fixed and variable cost behavior are reasonably valid.
In describing the cost formula equation Y = a + bX, which of the following statements is correct? “a” is the fixed component.
Which of the following costs is often important in decision making, but is omitted from conventional accounting records? Opportunity Costs.
Gambrini Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $197.80 per unit.
Sales volume (units)
6,000
7,000
Cost of sales
$486,000
$567,700
Selling and administrative costs
$612,600
$624,400
The best estimate of the total monthly fixed cost is: $541,800
Edeen Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.
Production volume
5,000 units
6,000 units
Direct materials
$311,000
$373,200
Direct labor
$171,500
$205,800
Manufacturing overhead
$415,000
$427,800
The best estimate of the total variable manufacturing cost per unit is: $109.30
At an activity level of 9,200 machine-hours in a month, Nooner