Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1
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.
2
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.
3
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.
4
An analysis of past maintenance costs indicates that maintenance 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 maintenance cost if the activity level is 18,500 machine-hours?
A)$1,600
B)$6,960
C)$8,000
D)$9,000
5
The Olivia Company would like to classify its costs according to cost behavior. The following data is available about one of its costs:
 
First Quarter
Second Quarter
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 Finch 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 Darien Department Store for the first quarter of the year:
Sales
$700,000
Fixed cost of goods sold
100,000
Variable cost of goods sold
220,000
Fixed administrative expenses
110,000
Variable administrative expenses
30,000
Fixed selling expenses
50,000
Variable selling expense
170,000

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 Darien Department Store for the third quarter of the year. (Note that this is the same data provided for the previous question.)
Sales
$700,000
Fixed cost of goods sold
100,000
Variable cost of goods sold
220,000
Fixed administrative expenses
110,000
Variable administrative expenses
30,000
Fixed selling expenses
50,000
Variable selling expense
170,000

The company's contribution margin for the third quarter was:
A)$280,000.
B)$380,000.
C)$420,000.
D)$600,000.
9
Shipping expense is $40,000 for 19,000 pounds shipped and $34,000 for 16,000 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
Duffy Company has provided the following data for the second quarter of the most recent year:
Sales
$600,000
Direct materials
103,000
Direct labor
145,000
Fixed manufacturing overhead
110,000
Variable manufacturing overhead
82,000
Fixed administrative expense
89,000
Variable administrative expense
96,000
Fixed selling expense
92,500
Variable selling expense
99,500

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.





To learn more about the book this website supports, please visit its Information Center.
(c)2008 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Managerial AccountingOnline Learning Center

Home > Chapter 5 > Multiple Choice Quiz