ACCT 2102 TEST 2 CH 5 REVIEW

An income statement for Sam's Bookstore for the first quarter of the year is presented below:

On average, a book sells for $55. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed.

The contribution margin for Sam's Bookstore for the first quarter is:

• • $250,000

• • $764,800

• • $214,800

• • $665,200

For the past 8 months, Jinan Corporation has experienced a steady increase in its cost per unit even though total costs have remained stable. This cost per unit increase may be due to _____________ costs if the level of activity at Jinan is _____________

• fixed, decreasing

• • fixed, increasing

• • variable, decreasing

• • variable, increasing

Which of the following is correct concerning reactions to INCREASES in activity?

• • Choice A

• • Choice B

• • Choice C

• • Choice D

In the standard cost formula Y = a + bX, what does the "Y" represent?

• total cost

• • total fixed cost

• • total variable cost

• • variable cost per unit

Given the cost formula, Y = $16,000 + $3.40X, total cost for an activity level of 4,000 units would be:

• • $13,600

• • $3,600

• • $29,600

• • $16,000

Tirri Corporation has provided the following information:

If the selling price is $26.90 per unit, the contribution margin per unit sold is closest to

• • 
    $13.00

• • $6.95

• • $16.10

• • $10.05

Macy Corporation's relevant range of activity is 6,600 units to 14,000 units. When it produces and sells 10,300 units, its average costs per unit are as follows:

If the selling price is $29.50 per unit, the contribution margin per unit sold is closest to:

• • $10.65

• • $6.85

• • $20.55

• • $17.30

Schwiesow Corporation has provided the following information:

If 8,500 units are produced, the total amount of manufacturing overhead cost is closest to:

• $33,150

• • $34,150

• • $32,150

• • $51,150

Pedregon Corporation has provided the following information:

If 3,500 units are sold, the total variable cost is closest to:

• • $52,850

• • $63,000

• • $47,425

• • $41,300

Pedregon Corporation has provided the following information:

If 7,000 units are produced, the total amount of manufacturing overhead cost is closest to:

• • $36,050

• • $24,850

• • $26,150

• • $47,250