Cost Quizlet 2
Cost Quizlet 2
. Carson Company's market for the Model A has changed significantly, and Carson has
had to drop the
price per unit from $265 to $125. There are some units in the work in process inventory that
have
costs of $150 per unit associated with them. Carson could sell these units in their current
state for
$100 each. It will cost Carson $10 per unit to complete these units so that they can be
sold for $125
each. A
Based on the information about Carson, which of the following is not considered a
relevant value for
this problem?
A. $265 = former price
B. $10 = cost to complete units
C. $100 = price for partially completed units
D. $125 = current price
Carson Company's market for the Model A has changed significantly, and Carson has had
to drop the
price per unit from $265 to $125. There are some units in the work in process inventory that
have
costs of $150 per unit associated with them. Carson could sell these units in their current
state for
$100 each. It will cost Carson $10 per unit to complete these units so that they can be
sold for $125 D
each.
When the incremental revenues and expenses are analyzed, the company is better off by:
A. $10 per unit if the sell the units in their current state.
B. $125 per unit if they complete the units.
C. $25 per unit if they sell the units in their current state.
D. $15 per unit if they complete the units
Columbia Hospital for Women is planning to expand its labor and delivery
room facilities. Although
variable costs per patient will remain unchanged, fixed costs will increase by
20 percent. Last year's
costs are below.
Variable costs $50 per patient
Fixed costs $20,000 per month
Calculate the future total cost assuming 100 patients are expected each
D
month.
A. $20,000
B. $25,000
C. $20,500
D. $29,000
. Conversion cost does not include
A. factory depreciation.
B. direct material. B
C. supervisors' salaries.
D. direct labor.
The following four months of data were collected on utility cost and the
number of labor hours in a
factory.
Month Utility cost Labor hours
January $22,100 3,975
February 24,600 5,430
March 23,500 4,400
April 20,140 3,200
A
Using the high-low method, compute the fixed cost of electricity.
A. $13,740
B. $10,860
C. $6,400
D. none of the answers are correct
B
October 11,400 610
November 10,200 510
December 10,725 550
Using the high-low method calculate the fixed cost of the janitorial services
A. $7,320
B. $4,080
C. $6,120
D. none of the answers are correct
Maxwell Company makes treadmills. The company controller wants to calculate the fixed
and
variable costs associated with the janitorial costs incurred in the factory.
Data for the past four months were collected.
Month Janitorial costs Machine hours
September $ 11,000 575
October 11,400 610
November 10,200 510
December 10,725 550
B
What would Maxwell Company's estimate of total janitorial cost be at a level of 625
machine hours?
A. $6,120
B. $11,580
C. $7,500
D. $4,080
Period costs
A. are expensed in the same period in which
they are incurred.
B. are associated with the periodic inventory
method.
A
C. are always variable costs.
D. remain unchanged over a given period of
time.