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Exam 1: Managerial Accounting and Cost Concepts

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Question 91

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A partial listing of costs incurred at Boylen Corporation during March appears below: Required: a.What is the total amount of product cost listed above? Show your work. b.What is the total amount of period cost listed above? Show your work.

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a.Product costs consist of dir...

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Question 92

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Direct costs:

A) are incurred to benefit a particular accounting period.
B) are incurred due to a specific decision.
C) can be easily traced to a particular cost object.
D) are the variable costs of producing a product.

E) None of the above
F) A) and B)

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Question 93

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Karpowicz Corporation's relevant range of activity is 7,000 units to 11,000 units.When it produces and sells 9,000 units, its average costs per unit are as follows: Required: a.If the selling price is $21.40 per unit, what is the contribution margin per unit sold? b.If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred? c.If 8,000 units are produced, what is the total amount of indirect manufacturing cost incurred? d.What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units?

Conversion cost equals product cost less direct materials cost.

A manufacturing company prepays its insurance coverage for a three-year period.The premium for the three years is $2,100 and is paid at the beginning of the first year.Sixty percent of the premium applies to manufacturing operations and forty percent applies to selling and administrative activities.What amounts should be considered product and period costs respectively for the first year of coverage?

Cost behavior is considered curvilinear whenever a straight line is a reasonable approximation for the relation between cost and activity.

If 8,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Comparative income statements for Boggs Sports Equipment Company for the last two months are presented below: All of the company's costs are either fixed, variable, or a mixture of the two (i.e., mixed) .Assume that the relevant range includes all of the activity levels mentioned in this problem. Which of the selling and administrative expenses of the company is variable?

The gross margin for June is:

What is the total amount of the costs listed above that are NOT direct costs of the Brentwood Store?

Ouelette Corporation's relevant range of activity is 3,000 units to 7,000 units.When it produces and sells 5,000 units, its average costs per unit are as follows: If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

What is the total of the conversion costs above?

In account analysis, an account is classified as either variable or fixed based on an analyst's prior knowledge of how the cost in the account behaves.

Rent on the administrative office space is:

Indirect costs, such as manufacturing overhead, are variable costs.

At an activity level of 8,400 units in a month, Braughton Corporation's total variable maintenance and repair cost is $697,284 and its total fixed maintenance and repair cost is $464,100.What would be the total maintenance and repair cost, both fixed and variable, at an activity level of 8,500 units in a month? Assume that this level of activity is within the relevant range.

At a volume of 5,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including $14,000 in fixed costs.If volume increases to 6,000 units and both 5,000 units and 6,000 units are within the relevant range, then the company would expect to incur total factory overhead costs of:

The relevant range is the range of activity within which the assumption that cost behavior is strictly linear is reasonably valid.

All of the following are examples of product costs except:

Balerio Corporation's relevant range of activity is 7,000 units to 11,000 units.When it produces and sells 9,000 units, its average costs per unit are as follows: Required: a.For financial reporting purposes, what is the total amount of product costs incurred to make 9,000 units? b.If 10,000 units are sold, what is the variable cost per unit sold? c.If 10,000 units are sold, what is the total amount of variable costs related to the units sold? d.If the selling price is $18.20 per unit, what is the contribution margin per unit sold? e.What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units?