Question: Can I please get help. Thank you. 1. Presented below are the production data for the mixed costs incurred by Clarion Company. Month Cost Units
Can I please get help. Thank you.
1. Presented below are the production data for the mixed costs incurred by Clarion Company.
Month Cost Units
March $4,700 3,700
April 7,200 5,050
May 5,565 4,725
June 9,500 8,500
July 7,915 6,745
August 8,300 7,500
Clarion Company uses the high-low method to estimate mixed costs.
Refer to Exhibit 5-1. What is the estimated total mixed cost at an operating level of 7,000 units?
a- $10,700
b- $7,700
c- $16,500
d- None of the answer choices is correct.
e- $8,000
2. Regression analysis for Barton Industries results in the following output. Coefficients
Y Intercept 880
X Variable 1,016.75
Refer to Exhibit 5-6. Assume Barton Industries will produce 500 units next month. What are the total estimated production costs for the month? a- $880.00
b- None of the answer choices is correct.
c- $441,016.75
d- $508,375.00
e- $509,255.00
3. Cost estimates made using activity levels outside the relevant range: a- May result in poor decisions.
b- None of the answer choices is correct.
c- Mean that cost behavior patterns are accurate at all levels of activity.
d- Mean the cost estimates will be relevant.
e- Are more accurate.
4. Manchester Company is a small company that has hired you to help them estimate costs. They present you with the following information from the companys most recent fiscal year.
Sales (2,000 units) $1,000,000 Cost of goods sold (24% of sales) 240,000 Store supervisor's annual salary 65,000 Annual operating costs 70,000 Annual advertising and promotion 10,000 Sales commissions (5% of sales) 50,000
Refer to Exhibit 5-2. What was the variable cost per unit for the companys most recent fiscal year? a- $150 per unit
b- $180 per unit
c- $120 per unit
d- $145 per unit
e- None of the answer choices is correct.
5. Manchester Company is a small company that has hired you to help them estimate costs. They present you with the following information from the companys most recent fiscal year.
Sales (2,000 units) $1,000,000 Cost of goods sold (24% of sales) 240,000 Store supervisor's annual salary 65,000 Annual operating costs 70,000 Annual advertising and promotion 10,000 Sales commissions (5% of sales) 50,000
Refer to Exhibit 5-2. What were the total fixed costs for the companys most recent fiscal year? a- $195,000
b- $145,000
c- $70,000
d- None of the answer choices is correct.
e- $135,000
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