ACCT 2122 BAP Chapter 5 Practice Exam 1.

An analysis of past janitorial costs indicates that janitorial cost is an average of $0.80 per machine-hour at an activity level of 80,000 machine-hours and $1.00 per machine-hour at an activity level of 64,000 machine-hours. Assuming that this activity is within the relevant range, what is the total expected janitorial cost if the activity level is 70,000 machine-hours?

2. Das Doors Inc. has recorded the following costs for utilities at various volumes of production: Production Volume 600,000 400,000 200,000 Total Utilities Costs $700,000 500,000 300,000

Prepare a scattergraph to estimate the cost function for utilities costs.

3. Petrarca Company incurred $20,000 to ship 2,000 pounds and $27,500 to ship 3,000 pounds. If the company ships 2,500 pounds, what is its total expected shipping expense?

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ACCT 2122 BAP Chapter 5 Practice Exam

4. The following information has been provided by the Fasan Florist, Inc. for the first quarter of the year: Cost of goods sold Fixed administrative expenses Fixed selling expenses Sales Variable administrative expenses Variable selling expense $ 640,000 220,000 100,000 1,400,000 60,000 140,000

What was the companys contribution margin for the first quarter?

5. Chefs on Call Inc. has provided the following data for the second quarter of its most recent fiscal year: Sales Direct labor (all variable) Direct materials Variable selling expense Variable administrative expense Fixed selling expense Fixed administrative expense Variable manufacturing overhead Fixed manufacturing overhead $1,200,000 290,000 206,000 199,000 192,000 185,000 178,000 164,000 22,000

There were no beginning or ending inventories. What was the companys total contribution margin for the second quarter?

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