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Answer the following question$($s$)$ using the information below.

The Taranto Company uses the high$-$low method to estimate it's cost function. The information for the current year is provided below:

Machine$-$hours Costs

Highest observation of cost driver $2,000$ $$225,000$

Lowest observation of cost driver $1,000$ $$125,000$

What is the estimate of the total cost when $1,100$ machine$-$hours are used?

Question $1$Select one:

A$.$

$$200,000$

B$.$

$$136,000$

C$.$

$$135,000$

D$.$

$$150,000$

E$.$

$$125,000$

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The demand for Ballard's Glass Company's products varies, ranging from $10$ to $20$ windows a day with an average of $15.$ John Ballard is the only worker and he works a maximum of eight hours a day, five days a week. Each order is one window, and each window takes $26$ minutes to install. The company plans to add doors to its product line and anticipates selling an average of $5$ doors per day. Each door takes $12$ minutes to install. What is the average waiting time if Ballard is the only worker?

Question $2$Select one:

A$.$

$523\mathrm{.}4$ minutes

B$.$

$112\mathrm{.}4$ minutes

C$.$

$181\mathrm{.}0$ minutes

D$.$

$410\mathrm{.}0$ minutes

E$.$

$38\mathrm{.}0$ minutes

Question $3$

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In regression analysis, the term independence of residuals means

Question $3$Select one:

A$.$

there is a systematic pattern of positive residuals.

B$.$

the data exhibit serial correlation.

C$.$

the data exhibit autocorrelation.

D$.$

the residual term for any one observation is not related to the residual term of any other observation.

E$.$

there is a systematic pattern of either only positive or only negative residuals.

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Use the information below to answer the following question$($s$).$

Dylan Products has a budget of $$1,200,000$ in $2015$ for prevention costs. If it decides to automate a portion of its prevention activities, it will save $$90,000$ in variable costs. The new method will require $$40,000$ in training costs and $$150,000$ in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is $210,000$ units.

Appraisal costs for the year are budgeted at $$500,000.$ The new prevention procedures will save appraisal costs of $$50,000.$ Internal failure costs average $$20$ per failed unit of finished goods. The internal failure rate is expected to be $4\%$ of all completed items. The proposed changes will cut the internal failure rate by one$-$half. Internal failure units are destroyed. External failure costs average $$48$ per failed unit. The company's average external failures average $2\mathrm{.}5\%$ of units sold. The new proposal will reduce this rate to $1\%.$ Assume all units produced are sold and there are no ending inventories.

What is the net change in the budget of prevention costs if the procedures are automated in $2015?$ Will management agree with the changes?

Question $4$Select one:

A$.$

$$100,000$ decrease, yes

B$.$

$$90,000$ increase, no

C$.$

$$190,000$ increase, no

D$.$

$$90,000$ decrease, yes

E$.$

$$100,000$ increase, yes

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Warranty repair costs are

Question $5$Select one:

A$.$

an external failure cost.

B$.$

a marketing cost.

C$.$

appraisal costs.

D$.$

prevention costs.

E$.$

an internal failure cost.

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Use the information below to answer the following question$($s$).$

The Skip Corporation has assembled the following data pertaining to certain costs which cannot be easily identified as either fixed or variable. Skip Corporation has heard about a method of measuring cost functions called the high$-$low method and has decided to use it in this situation.

Cost Hours

$$20,0007,000$

$12,2004,000$

$17,0005,200$

$15,6404,900$

$18,2006,000$

$22,0807,800$

$21,2007,480$

$18,6006,760$

The total cost at an operating level of $2,850$ hours would be

Question $6$Select one:

A$.$

$$11,763.$

B$.$

$$19,210.$

C$.$

$$9,210.$

D$.$

$$11,212.$

E$.$

$$14,697.$

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The demand for Ballard's Glass Company's products varies, ranging from $10$ to $20$ windows a day with an average of $15.$ John Ballard is the only worker and he works a maximum of eight hours a day, five days a week. Each order is one window, and each window takes $26$ minutes to install. The company plans to add doors to its product line and anticipates that they will sell an average of $5$ doors per day. Each door takes $12$ minutes to install.

Ballard is concerned with the increased waiting time if it adds doors. To offset this concern it can hire a part$-$time employee. This will decrease window time to $20$ mi