8. If a firm’s total material cost increases by $150,000 when the level of production increases...
8. If a firm’s total material cost increases by $150,000 when
the level of production increases
by 6,500 units, what is the variable cost on a per unit basis?
9. Categorize the various expenses and examine the cost
behaviors of a business you now
operate or plan to start in the near future.
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8. If a firm’s total material cost increases by $150,000 when the level of production increases...
5. Facility rent is $2,000 per month, accounting services cost $2,600 per month, insurance is $1,100...
5. Facility rent is $2,000 per month, accounting services cost $2,600 per month, insurance is $1,100 per month, and utilities such as phone and electricity cost $550 per month. The manager is paid $89,000 per year, gets benefits worth $6,500 per year, and the Social Security contribution is 7.65 percent. Given this information, what is the amount of annual fixed expense that this company has to pay? 6. Given the information in problem 5, if the profit contribution after variable...
When marginal cost of production rises above the average total cost of production, we know that:...
When marginal cost of production rises above the average total cost of production, we know that: A. the firm has economies of scale B. average total cost is decreasing C. marginal cost is negative D. average total cost is increasing Average total cost curves are usually depicted as downward sloping at low levels of output because: A. Average fixed costs are declining B. Opportunity costs decline as output (Q) increases C. Average fixed...
1a. A guy in a revenue firm is paid the equivalent of 2 months sales revenue...
1a. A guy in a revenue firm is paid the equivalent of 2 months sales revenue for each new customer added. The charge for the service is $120 per month, and providing the service costs the company $50 per month per customer. It costs $25 to hook each new customer. What would be the effect on this month’s expenses if the salesperson added 55 new customers this month? 1b. An assembly line can produce 125 units per hour and the...
Hernandez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and...
Hernandez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per unit DIRECT MATERIALS $6.00 DIRECT LABOR $3.50 VARIABLE MANUFACTURING OVERHEAD $1.50 FIXED MANUFACTURING OVERHEARD $4.00 FIXED SELLING EXPENSES $3.00 FIXED ADMINISTRATIVE EXPENSES $2.00 SALES COMMISSIONS $1.00 VARIABLE ADMINISTRATIVE EXPENSES $.50 1. FOR FINANCIAL ACCOUNTING PURPOSES, WHAT IS THE TOTAL AMOUNT OF PRODUCT COSTS INCURRED TO MAKE 10,000 UNITS? 2. FOR...
The estimated unit cost for CNR Inc. when its operating at a production and sales level...
The estimated unit cost for CNR Inc. when its operating at a production and sales level of 12,000 units, are as follows: Cost Item Estimated Unit Cost Direct Materials $32 Direct Labor Variable factory overhead Fixed Factory overhead Variable marketing Fixed marketing Required: a identify the estimated conversion cost per unit. b. Identify the estimated prime cost per unit c. Determine the estimated total variable cost per unit. d. Compute the total cost that would be incurred during a month...
pls answer ? Martinez Company's relevant range of production is 7,500 units to 12.500 units. When...
pls answer ?
Martinez Company's relevant range of production is 7,500 units to 12.500 units. When it produces and sells 10,000 units, its unit costs are as follows: [L01, Amount Per Unit Direct materials Direct labor.. Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense...... Sales commissions Variable administrative expense $6.00 $3.50 $1.50 $4.00 $3.00 $2.00 $1.00 $0.50 Required: 1. If 8,000 units are sold, what is the variable cost per unit sold? 2. If 12.500 units...
Direct material = $7 Direct Labor = $4 Variable Manufacturing Overhead = $2 Fixed Manufacturing Overhead...
Direct material = $7 Direct Labor = $4 Variable Manufacturing Overhead = $2 Fixed Manufacturing Overhead = $3 Fixed Selling Expense = $3 Fixed Admin Expense = $2 Sales commission = $1 Variable Admin Expense $.50 (Costs are when 10,000 units are produced and sold) Relevant range is 7,500-12,500 units 1) If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced? 2) If 12,500 units are produced, what is the average fixed manufacturing cost per...
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains...
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains constant on a per-unit basis c. Remains constant in total d. Decreases in total e. None of the above 8. The predetermined overhead rate is developed from a. Forecast cost and forecast activity b. Forecast cost and actual activity c. Actual cost and forecast activity d. Actual cost and actual activity e. None of the above 9. Which of the following would not be...
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains...
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains constant on a per-unit basis c. Remains constant in total d. Decreases in total e. None of the above 8. The predetermined overhead rate is developed from a. Forecast cost and forecast activity b. Forecast cost and actual activity c. Actual cost and forecast activity d. Actual cost and actual activity e. None of the above 9. Which of the following would not be...
9. If production volume increases from 8000 to 10 000 units, a. total costs will increase...
9. If production volume increases from 8000 to 10 000 units, a. total costs will increase by 20 per cent. b. total costs will increase by 25 per cent. c. total variable costs will increase by 25 per cent. d. mixed and variable costs will increase by 25 per cent. 10. The direct material cost is £10 000 when 2000 units are produced. What is the direct material cost for 2500 units produced? a. £10 000 b. £8000 c. £15...
5. Facility rent is $2,000 per month, accounting services cost $2,600 per month, insurance is $1,100 per month, and utilities such as phone and electricity cost $550 per month. The manager is paid $89,000 per year, gets benefits worth $6,500 per year, and the Social Security contribution is 7.65 percent. Given this information, what is the amount of annual fixed expense that this company has to pay? 6. Given the information in problem 5, if the profit contribution after variable...
The estimated unit cost for CNR Inc. when its operating at a production and sales level of 12,000 units, are as follows: Cost Item Estimated Unit Cost Direct Materials $32 Direct Labor Variable factory overhead Fixed Factory overhead Variable marketing Fixed marketing Required: a identify the estimated conversion cost per unit. b. Identify the estimated prime cost per unit c. Determine the estimated total variable cost per unit. d. Compute the total cost that would be incurred during a month...
pls answer ?
Martinez Company's relevant range of production is 7,500 units to 12.500 units. When it produces and sells 10,000 units, its unit costs are as follows: [L01, Amount Per Unit Direct materials Direct labor.. Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense...... Sales commissions Variable administrative expense $6.00 $3.50 $1.50 $4.00 $3.00 $2.00 $1.00 $0.50 Required: 1. If 8,000 units are sold, what is the variable cost per unit sold? 2. If 12.500 units...
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains constant on a per-unit basis c. Remains constant in total d. Decreases in total e. None of the above 8. The predetermined overhead rate is developed from a. Forecast cost and forecast activity b. Forecast cost and actual activity c. Actual cost and forecast activity d. Actual cost and actual activity e. None of the above 9. Which of the following would not be...
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains constant on a per-unit basis c. Remains constant in total d. Decreases in total e. None of the above 8. The predetermined overhead rate is developed from a. Forecast cost and forecast activity b. Forecast cost and actual activity c. Actual cost and forecast activity d. Actual cost and actual activity e. None of the above 9. Which of the following would not be...
9. If production volume increases from 8000 to 10 000 units, a. total costs will increase by 20 per cent. b. total costs will increase by 25 per cent. c. total variable costs will increase by 25 per cent. d. mixed and variable costs will increase by 25 per cent. 10. The direct material cost is £10 000 when 2000 units are produced. What is the direct material cost for 2500 units produced? a. £10 000 b. £8000 c. £15...
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