Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Measurement
239) Oerther Corporation reports that at an activity level of 5,000 units, its total variable cost is $131,750 and its total fixed cost is $31,200.
What would be the total variable cost at an activity level of 5,200 units? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)
A) $137,020
B) $131,750
C) $162,950
D) $32,448
Answer: A
Explanation: Variable cost per unit = Total variable cost ÷ Total activity
= $131,750 ÷ 5,000 units
= $26.35 per unit
Total variable cost = Variable cost per unit × Total activity
= $26.35 per unit × 5,200 units
= $137,020
Difficulty: 1 Easy
Topic: Cost Classifications for Predicting Cost Behavior
Learning Objective: 01-04 Understand cost classifications used to predict cost behavior: variable costs, fixed costs, and mixed costs.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Measurement
240) Oerther Corporation reports that at an activity level of 5,000 units, its total variable cost is $131,750 and its total fixed cost is $31,200.
What would be the average fixed cost per unit at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.
A) $6.24
B) $6.00
C) $14.94
D) $32.59
Answer: B
Explanation: Average fixed cost per unit = Total fixed cost ÷ Total activity
= $31,200 ÷ 5,200 units
= $6.00 per unit
Difficulty: 1 Easy
Topic: Cost Classifications for Predicting Cost Behavior
Learning Objective: 01-04 Understand cost classifications used to predict cost behavior: variable costs, fixed costs, and mixed costs.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Measurement
241) At an activity level of 9,000 machine-hours in a month, Moffatt Corporation's total variable maintenance cost is $390,240 and its total fixed maintenance cost is $368,280.
What would be the total variable maintenance cost at an activity level of 9,300 machine-hours in a month? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)
A) $758,520
B) $403,248
C) $390,240
D) $380,556
Answer: B
Explanation:
Variable maintenance cost per unit = Total variable maintenance cost ÷ Total activity
= $390,240 ÷ 9,000 machine-hours
Total variable maintenance cost = Variable maintenance cost per unit × Total activity
= $43.36 per machine-hour × 9,300 machine-hours
= $403,248
Difficulty: 1 Easy
Topic: Cost Classifications for Predicting Cost Behavior
Learning Objective: 01-04 Understand cost classifications used to predict cost behavior: variable costs, fixed costs, and mixed costs.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Measurement
242) At an activity level of 9,000 machine-hours in a month, Moffatt Corporation's total variable maintenance cost is $390,240 and its total fixed maintenance cost is $368,280.
What would be the average fixed maintenance cost per unit at an activity level of 9,300 machine-hours in a month? Assume that this level of activity is within the relevant range.
A) $40.92
B) $84.28
C) $39.60
D) $54.93
Answer: C
Explanation: Average fixed maintenance cost = Total fixed maintenance cost ÷ Total activity = $368,280 ÷ 9,300 machine-hours = $39.60 per machine-hour
Difficulty: 1 Easy
Topic: Cost Classifications for Predicting Cost Behavior
Learning Objective: 01-04 Understand cost classifications used to predict cost behavior: variable costs, fixed costs, and mixed costs.
Bloom's: Apply
AACSB: Analytical Thinking
AICPA: BB Critical Thinking; FN Measurement
243) At a sales volume of 40,000 units, Lonnie Company's total fixed costs are $40,000 and total variable costs are $60,000. The relevant range is 30,000 to 50,000 units.
If Lonnie were to sell 42,000 units, the total expected cost would be:
A) $105,000
B) $100,000
C) $103,000
D) $102,000
Answer: C
Explanation:
Variable cost per unit = Total variable cost ÷ Units = $60,000 ÷ 40,000 = $1.50 per unit