4 The following three data points appear to be Lnite 600 800 1,000 Costa 5500 s00 500 A. a variable cost B. a mixed cost C. a fixed cost D. a step cost The linear equation Y a + bX is often used to express cost formulas In this equion A. The bterm represents variable cost per unit of activity B. The a term represents variable cost in total C. The Xterm represents total cost D. The Yterm represents total fixed cost Which of the following statements are true regarding financial and managerial accounting? L Both require GAAP and mandatory I1. Both supply information for decision making III Both emphasize the segments of an organization, rather than juat looking at the organization as a whole. IV. Both are geared to the future, rather than to the past. A. L I1, III, and IV B. Only II, TI and IV C. Only Il and II D. Only II Which of the following costs would not be included as part of manufacturing overhead? A. Insurance on sales vehicles B. Depreciation of production equipment C. Lubricants for production equipment D. Direct labor overtime premium 7. Which of the following formulas is used to calculate the contribution margin ratio? A. (Sales- Fixed expenses) + Sales B. (Sales- Cost of goods sold) +Sales C. (Sales- Variable expenses) +Sales D. (Sales- Total expenses)+ Sales & Part B: (18 marks) (6 marks) Problem (1) The following data pertains to activity and maintenance costs of Dubai Company for two recent years: Tear 1 8.000 Year 2 12.000 Actvity level in units $12.000 $15.000 Maintenance cost