Choose the best answer for each of the following questions.

1.			An analysis of past janitorial costs indicates that janitorial cost is an average of $0.40 per machine-hour at an activity level of 20,000 machine-hours and $0.50 per machine-hour at an activity level of 16,000 machine-hours. Assuming that this activity is within the relevant range, what is the total expected janitorial cost if the activity level is 18,500 machine-hours?
			A)	$1,600
			B)	$6,960
			C)	$8,000
			D)	$9,000
2.			Given the cost formula Y = $30,000 + $5X, total cost at an activity level of 16,000 units would be:
			A)	$30,000.
			B)	$46,000.
			C)	$80,000.
			D)	$110,000.
3.			Expense #1 is a fixed cost; expense #2 is a variable cost. During the current year the activity level has increased, but is still within the relevant range. In terms of cost per unit of activity, we would expect that:
			A)	expense #1 will be unchanged.
			B)	expense #2 will decrease.
			C)	expense #1 will decrease.
			D)	expense #2 will increase.
4.			Which costs will change with an increase in activity within the relevant range?
			A)	Total fixed costs and total variable cost.
			B)	Per unit fixed costs and total variable cost.
			C)	Per unit variable cost and per unit fixed cost.
			D)	Per unit fixed cost and total fixed cost.
5.			The Rayden Company would like to classify its costs according to cost behavior. The following data is available about one of its costs:   January February Sales in units 3,000 3,200 Cost 135,000 144,000 Which of the following classifications best describes the behavior of the cost?
			A)	Mixed.
			B)	Variable.
			C)	Fixed.
			D)	none of the above.
6.			The Omnitech Company would like to classify its costs according to cost behavior. The following data is available about one of its costs:   January February Sales in units 3,000 3,200 Cost 32,000 32,000 Which of the following classifications best describes the behavior of the cost?
			A)	Mixed.
			B)	Variable.
			C)	Fixed.
			D)	none of the above.
7.			The following information has been provided by the Delnor Department Store for the first quarter of the year: Fixed administrative expenses $110,000 Fixed cost of goods sold 100,000 Fixed selling expenses 50,000 Variable administrative expenses 30,000 Variable cost of goods sold 220,000 Variable selling expense 170,000 Sales 700,000 The company's gross margin for the quarter was:
			A)	$280,000.
			B)	$380,000.
			C)	$420,000.
			D)	$440,000.
8.			The following information has been provided by the Delnor Department Store for the first quarter of the year. (Note that this is the same data provided for the previous question.) Fixed administrative expenses $110,000 Fixed cost of goods sold 100,000 Fixed selling expenses 50,000 Variable administrative expenses 30,000 Variable cost of goods sold 220,000 Variable selling expense 170,000 Sales 700,000 The company's contribution margin for the quarter was:
			A)	$280,000.
			B)	$380,000.
			C)	$420,000.
			D)	$600,000.
9.			Shipping expense is $34,000 for 16,000 pounds shipped and $40,000 for 19,000 pounds shipped. Assuming that this activity is within the relevant range, if the company ships 18,000 pounds, its expected shipping expense is closest to:
			A)	$37,000.
			B)	$37,895.
			C)	$38,000.
			D)	$38,250.
10.			Seering Company has provided the following data for the second quarter of the most recent year: Direct materials $103,000 Direct labor 145,000 Fixed administrative expense 89,000 Fixed manufacturing overhead 110,000 Fixed selling expense 92,500 Variable administrative expense 96,000 Variable manufacturing overhead 82,000 Variable selling expense 99,500 Sales 600,000 Assume that direct labor is a variable cost and that there were no beginning or ending inventories. The company's total contribution margin for the quarter was:
			A)	$74,500.
			B)	$174,000.
			C)	$352,000.
			D)	$422,000.