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Bee Company is a honey wholesaler.An income statement and other data for the second quarter of the year are given below: Bee Company is a honey wholesaler.An income statement and other data for the second quarter of the year are given below: Bee Company's contribution margin for the second quarter is: A) $463,200 B) $540,000 C) $851,200 D) $431,200 Bee Company is a honey wholesaler.An income statement and other data for the second quarter of the year are given below: Bee Company's contribution margin for the second quarter is: A) $463,200 B) $540,000 C) $851,200 D) $431,200 Bee Company's contribution margin for the second quarter is:


A) $463,200
B) $540,000
C) $851,200
D) $431,200

E) B) and C)
F) A) and B)

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Comparative income statements for Tudor Retailing Company for the last two months are presented below: Comparative income statements for Tudor Retailing Company for the last two months are presented below: Which of the following classifications best describes the behavior of shipping expense? A) Mixed B) Variable C) Fixed D) none of these Which of the following classifications best describes the behavior of shipping expense?


A) Mixed
B) Variable
C) Fixed
D) none of these

E) B) and C)
F) B) and D)

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Contribution margin means:


A) what remains from total sales after deducting fixed expenses.
B) what remains from total sales after deducting cost of goods sold.
C) the sum of cost of goods sold and variable expenses.
D) what remains from total sales after deducting all variable expenses.

E) All of the above
F) A) and B)

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Management of Lewallen Corporation has asked your help as an intern in preparing some key reports for September.Direct materials cost was $57,000,direct labor cost was $43,000,and manufacturing overhead was $71,000.Selling expense was $15,000 and administrative expense was $32,000. The conversion cost for September was:


A) $114,000
B) $131,000
C) $171,000
D) $103,000

E) A) and C)
F) B) and D)

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Bee Company is a honey wholesaler.An income statement and other data for the second quarter of the year are given below: Bee Company is a honey wholesaler.An income statement and other data for the second quarter of the year are given below: If 24,000 units are sold during the third quarter and this activity is within the relevant range,Bee Company's expected contribution margin would be: A) $646,800 B) $762,000 C) $810,000 D) $760,080 Bee Company is a honey wholesaler.An income statement and other data for the second quarter of the year are given below: If 24,000 units are sold during the third quarter and this activity is within the relevant range,Bee Company's expected contribution margin would be: A) $646,800 B) $762,000 C) $810,000 D) $760,080 If 24,000 units are sold during the third quarter and this activity is within the relevant range,Bee Company's expected contribution margin would be:


A) $646,800
B) $762,000
C) $810,000
D) $760,080

E) A) and B)
F) A) and C)

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If the level of activity increases within the relevant range:


A) variable cost per unit and total fixed costs also increase.
B) fixed cost per unit and total variable cost also increase.
C) total cost will increase and fixed cost per unit will decrease.
D) variable cost per unit and total cost also increase.

E) A) and B)
F) A) and C)

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The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: The best estimate of the total variable manufacturing cost per unit is: A) $39.10 B) $27.70 C) $11.40 D) $13.20 The best estimate of the total variable manufacturing cost per unit is:


A) $39.10
B) $27.70
C) $11.40
D) $13.20

E) All of the above
F) None of the above

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An example of a discretionary fixed cost would be:


A) taxes on the factory.
B) depreciation on manufacturing equipment.
C) insurance.
D) research and development.

E) All of the above
F) A) and B)

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Management of Childers Corporation is considering whether to purchase a new model 380 machine costing $278,000 or a new model 230 machine costing $207,000 to replace a machine that was purchased 3 years ago for $266,000.The old machine was used to make product R16K until it broke down last week.Unfortunately,the old machine cannot be repaired. Management has decided to buy the new model 230 machine.It has less capacity than the new model 380 machine,but its capacity is sufficient to continue making product R16K. Management also considered,but rejected,the alternative of simply dropping product R16K.If that were done,instead of investing $207,000 in the new machine,the money could be invested in a project that would return a total of $305,000. In making the decision to buy the model 230 machine rather than the model 380 machine,the differential cost was:


A) $71,000
B) $59,000
C) $12,000
D) $39,000

E) C) and D)
F) All of the above

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A partial listing of costs incurred at Gilhooly Corporation during September appears below: A partial listing of costs incurred at Gilhooly Corporation during September appears below: The total of the period costs listed above for September is: A) $303,000 B) $59,000 C) $366,000 D) $362,000 The total of the period costs listed above for September is:


A) $303,000
B) $59,000
C) $366,000
D) $362,000

E) A) and B)
F) B) and D)

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Electrical costs at one of Reifel Corporation's factories are listed below: Electrical costs at one of Reifel Corporation's factories are listed below: Management believes that electrical cost is a mixed cost that depends on machine-hours. Using the high-low method,the estimate of the fixed component of electrical cost per month is closest to: A) $7,371 B) $5,731 C) $5,875 D) $5,840 Management believes that electrical cost is a mixed cost that depends on machine-hours. Using the high-low method,the estimate of the fixed component of electrical cost per month is closest to:


A) $7,371
B) $5,731
C) $5,875
D) $5,840

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

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The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: The best estimate of the total cost to manufacture 1,200 units is closest to: A) $68,520 B) $100,920 C) $111,720 D) $90,120 The best estimate of the total cost to manufacture 1,200 units is closest to:


A) $68,520
B) $100,920
C) $111,720
D) $90,120

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

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Data concerning Nelson Company's activity for the first six months of the year appear below: Data concerning Nelson Company's activity for the first six months of the year appear below: Using the high-low method of analysis,the estimated monthly fixed component of the electrical cost is: A) $1,520 B) $440 C) $260 D) $560 Using the high-low method of analysis,the estimated monthly fixed component of the electrical cost is:


A) $1,520
B) $440
C) $260
D) $560

E) A) and C)
F) B) and C)

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Nieman Inc. ,a local retailer,has provided the following data for the month of March: Nieman Inc. ,a local retailer,has provided the following data for the month of March: The net operating income for March was: A) $130,000 B) $134,000 C) $43,000 D) $47,000 The net operating income for March was:


A) $130,000
B) $134,000
C) $43,000
D) $47,000

E) B) and C)
F) A) and B)

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Comparative income statements for Tudor Retailing Company for the last two months are presented below: Comparative income statements for Tudor Retailing Company for the last two months are presented below: If the Tudor Retailing Company uses the high-low method of analysis,the total monthly fixed cost for Tudor Retailing Company would be estimated to be: A) $34,500 B) $17,000 C) $27,000 D) $22,000 If the Tudor Retailing Company uses the high-low method of analysis,the total monthly fixed cost for Tudor Retailing Company would be estimated to be:


A) $34,500
B) $17,000
C) $27,000
D) $22,000

E) All of the above
F) B) and C)

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Comparative income statements for Tudor Retailing Company for the last two months are presented below: Comparative income statements for Tudor Retailing Company for the last two months are presented below: Which of the following classifications best describes the behavior of clerical expense? A) Mixed B) Variable C) Fixed D) none of these Which of the following classifications best describes the behavior of clerical expense?


A) Mixed
B) Variable
C) Fixed
D) none of these

E) A) and B)
F) A) and C)

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Abare Corporation reported the following data for the month of December: Abare Corporation reported the following data for the month of December: The prime cost for December was: A) $129,000 B) $115,000 C) $109,000 D) $62,000 The prime cost for December was:


A) $129,000
B) $115,000
C) $109,000
D) $62,000

E) None of the above
F) C) and D)

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Tolden Marketing,Inc. ,a merchandising company,reported sales of $2,861,800 and cost of goods sold of $1,492,400 for December.The company's total variable selling expense was $77,900;its total fixed selling expense was $70,600;its total variable administrative expense was $98,400;and its total fixed administrative expense was $193,400.The cost of goods sold in this company is a variable cost. The contribution margin for December is:


A) $1,369,400
B) $2,421,500
C) $1,193,100
D) $929,100

E) B) and C)
F) A) and B)

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Baker Corporation has provided the following production and total cost data for two levels of monthly production volume.The company produces a single product. Baker Corporation has provided the following production and total cost data for two levels of monthly production volume.The company produces a single product. The best estimate of the total variable manufacturing cost per unit is: A) $32.40 B) $44.80 C) $66.20 D) $21.40 The best estimate of the total variable manufacturing cost per unit is:


A) $32.40
B) $44.80
C) $66.20
D) $21.40

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

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Erkkila Inc.reports that at an activity level of 6,400 machine-hours in a month,its total variable inspection cost is $423,680 and its total fixed inspection cost is $154,368. What would be the average fixed inspection cost per unit at an activity level of 6,700 machine-hours in a month? Assume that this level of activity is within the relevant range.


A) $23.04
B) $90.32
C) $24.12
D) $45.83

E) B) and D)
F) C) and D)

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