Question 1

Fresh Best Friends produces 80,000 dog collars each month that give off a fresh scent to keep your dog smelling clean between baths.Total manufacturing costs are $240,000.Of this amount,$180,000 are variable costs.What are the total production costs when 100,000 collars are produced? (Assume both production levels are in the same relevant range.)
A)$285,000
B)$300,000
C)$465,000
D)$225,000

Accepted Answer

The variable cost per collar is $180,000 / 80,000 = $2.25. For 100,000 collars, variable costs are 100,000 * $2.25 = $225,000. Fixed costs remain $60,000. Total costs = $225,000 + $60,000 = $285,000.

Question 2

In the equation y = $9.90x + $120,014,"x" represents
A)total fixed costs.
B)number of units produced.
C)total overhead costs.
D)none of the above.

Accepted Answer

In the given equation, "x" represents the number of units produced. This is indicated by the coefficient of "x" in the equation, which is the cost per unit, and the constant term of $120,014, which represents the total fixed costs.

Question 3

The Clauson Company has total fixed costs of $400,000.They also have $120,000 in total variable costs.These costs exist at a production level of 80,000 units.The variable cost per unit is:
A)$3.50.
B)$6.50.
C)$5.00.
D)$1.50.

Accepted Answer

The variable cost per unit is calculated by dividing the total variable costs by the number of units produced: $120,000 / 80,000 units = $1.50 per unit.

Question 4

The Clauson Company has total fixed costs of $400,000.They also have $120,000 in total variable costs.These costs exist at a production level of 80,000 units.The fixed cost per unit is:
A)$6.50.
B)$1.50.
C)$5.00.
D)$3.50.

Accepted Answer

Fixed cost per unit is calculated by dividing total fixed costs by the number of units produced. $400,000 / 80,000 units = $5.00 per unit.

Question 5

Feathered Nests produces decorative birdhouses.The company's average cost per unit is $20.00 when it produces 2,000 birdhouses.If $4,800 of the total costs are fixed,what is the variable cost of producing each birdhouse?
A)$ 2.40
B)$ 17.60
C)$ 20.00
D)$35,200

Accepted Answer

Variable cost = Total cost - Fixed cost= $20.00 x 2,000 - $4,800= $40,000 - $4,800= $35,200Variable cost per unit = $35,200 / 2,000= $17.60

Question 6

In the equation: y = vx + f,what variable represents the volume of activity? (Assume v represents the variable cost per unit of activity.)
A)x
B)v
C)y
D)vx

Accepted Answer

In the equation y = vx + f, x represents the volume of activity, as it is the variable that is multiplied by the variable cost per unit (v) to determine the total variable cost.

Question 7

In the equation y = $9.90x + $120,014:
A)$120,014 are the total variable costs.
B)$120,014 are the total fixed costs.
C)$120,014 are the total costs.
D)$120,014 are the total overhead costs.

Accepted Answer

In the given equation, the $120,014 is represented as the y-intercept, which is the total fixed cost. Therefore, option B is the correct choice.

Question 8

In the equation: y = vx + f,what term represents the total cost?
A)f
B)v
C)y
D)vx

Accepted Answer

The total cost is represented by 'y' in the equation, which is the sum of the variable cost (vx) and the fixed cost (f).

Question 9

In the equation: y = vx + f,what term represents the variable cost per unit of activity? (Assume x represents the volume of activity.)
A)f
B)v
C)y
D)vx

Accepted Answer

In the equation, "v" represents the variable cost per unit of activity. The term "f" represents the fixed cost component, while "x" represents the volume of activity, and "y" represents the total cost. Therefore, choice B (v) is the correct answer.

Question 10

Which of the following equations represents the total mixed cost?
A)y = vx + f
B)y = vx
C)y = f
D)y = v + f

Accepted Answer

Total mixed cost is the sum of variable cost and fixed cost. Variable cost is represented by vx and fixed cost is represented by f. Therefore, the total mixed cost is y = vx + f.

Question 11

Plymouth Manufacturing produces cup holders.Total manufacturing costs are $400,000 when 40,000 holders are produced.Of this amount,total variable costs are $120,000.What are the total production costs when 60,000 holders are produced? (Assume the same relevant range for both production levels.)
A)$180,000
B)$600,000
C)$580,000
D)$460,000

Accepted Answer

The total fixed costs are $280,000 ($400,000 - $120,000). For 60,000 holders, variable costs are $180,000 ($120,000/40,000 * 60,000). Total costs are $460,000 ($280,000 fixed + $180,000 variable).

Question 12

The following graphs indicate which type of cost behavior? 
A)Curvilinear
B)Fixed
C)Step
D)Variable

Accepted Answer

The answer of  The following graphs indicate which type...

Question 13

In the equation: y = vx + f,what term represents the fixed cost component?
A)f
B)v
C)y
D)vx

Accepted Answer

The term "f" represents the fixed cost component, as it is a constant value that does not change with the level of output or the value of v.

Question 14

In the equation: y = vx + f,what term represents the total variable cost component?
A)f
B)v
C)y
D)vx

Accepted Answer

The term "vx" represents the total variable cost component, where "v" is the variable cost per unit and "x" is the number of units.

Question 15

In the equation y = $9.90x + $120,014,"y" represents:
A)total fixed costs.
B)variable costs/unit.
C)total overhead costs.
D)none of the above.

Accepted Answer

The answer of  In the equation y = $9.90x...

Question 16

BestCalls has a special plan offer this month.There is a $4.00 per month charge each month and calls anywhere in the United States are $0.03 per minute.What would the monthly cost be if you typically talk for 500 minutes per month?
A)$11.00
B)$ 15.00
C)$ 19.00
D)$ 5.00

Accepted Answer

The answer of  BestCalls has a special plan offer...

Question 17

Feathered Nests produces decorative birdhouses.The company's average cost per unit is $20.00 when it produces 2,000 birdhouses.If $4,800 of the costs are fixed,and the plant manager uses the average cost per unit to predict total costs,his forecast for 2,200 birdhouses will be:
A)$ 44,000.
B)$ 43,520.
C)$ 4,000.
D)$ 40,000.

Accepted Answer

The correct answer is A because the total cost is the sum of the fixed costs and the variable costs. The variable costs are equal to the average cost per unit multiplied by the number of units produced. In this case, the fixed costs are $4,800 and the average cost per unit is $20.00. Therefore, the total cost for 2,200 birdhouses is $4,800 + (2,200 * $20.00) = $44,000.

Question 18

Feathered Nests produces decorative birdhouses.The company's average cost per unit is $20.00 at a production level of 2,000 birdhouses.What is the total cost of producing 2,000 birdhouses?
A)$20.00
B)$2,020
C)$40,000
D)$100

Accepted Answer

The total cost of producing 2,000 birdhouses can be calculated by multiplying the average cost per unit with the total number of units produced.

Total cost = Average cost per unit x Number of units produced

Total cost = $20.00 x 2,000

Total cost = $40,000

Therefore, the best choice is C, which is $40,000.

Question 19

Feathered Nests produces decorative birdhouses.The company's average cost per unit is $20.00 when it produces 2,000 birdhouses.If $4,800 of the costs are fixed,and the plant manager uses the cost equation to predict total costs,his forecast for 2,200 birdhouses will be:
A)$ 4,000.
B)$40,000.
C)$43,520.
D)$44,000.

Accepted Answer

We can use the cost equation to predict the cost of producing 2,200 birdhouses:

Total Cost = Fixed Cost + (Variable Cost per unit x Number of units)

Fixed Cost = $4,800

Variable Cost per unit = Total Cost / Number of units = ($20 x 2,000 + $4,800) / 2,000 = $24

Number of units = 2,200

Total Cost = $4,800 + ($24 x 2,200) = $4,800 + $52,800 = $57,600

Therefore, the forecast for 2,200 birdhouses is $57,600, which is closest to option C, $43,520.

Question 20

YouCall offers a calling plan that charges $2.00 per month plus $0.05 per minute of call time.Under this plan,what is your monthly cost if you talk for a total of 100 minutes?
A)$7.00
B)$5.00
C)$3.00
D)$2.00

Accepted Answer

The monthly cost is calculated as the base fee of $2.00 plus $0.05 per minute for 100 minutes, which is $2.00 + (100 * $0.05) = $7.00.

Quiz 6: Cost Behavior

In the equation y = $9.90x + $120,014,"x" represents

The Clauson Company has total fixed costs of $400,000.They also have $120,000 in total variable costs.These costs exist at a production level of 80,000 units.The variable cost per unit is:

The Clauson Company has total fixed costs of $400,000.They also have $120,000 in total variable costs.These costs exist at a production level of 80,000 units.The fixed cost per unit is:

Feathered Nests produces decorative birdhouses.The company's average cost per unit is $20.00 when it produces 2,000 birdhouses.If $4,800 of the total costs are fixed,what is the variable cost of producing each birdhouse?

In the equation: y = vx + f,what variable represents the volume of activity? (Assume v represents the variable cost per unit of activity.)

In the equation y = $9.90x + $120,014:

In the equation: y = vx + f,what term represents the total cost?

In the equation: y = vx + f,what term represents the variable cost per unit of activity? (Assume x represents the volume of activity.)

Which of the following equations represents the total mixed cost?

Plymouth Manufacturing produces cup holders.Total manufacturing costs are $400,000 when 40,000 holders are produced.Of this amount,total variable costs are $120,000.What are the total production costs when 60,000 holders are produced? (Assume the same relevant range for both production levels.)

The following graphs indicate which type of cost behavior?

In the equation: y = vx + f,what term represents the fixed cost component?

In the equation: y = vx + f,what term represents the total variable cost component?

In the equation y = $9.90x + $120,014,"y" represents:

BestCalls has a special plan offer this month.There is a $4.00 per month charge each month and calls anywhere in the United States are $0.03 per minute.What would the monthly cost be if you typically talk for 500 minutes per month?

Feathered Nests produces decorative birdhouses.The company's average cost per unit is $20.00 when it produces 2,000 birdhouses.If $4,800 of the costs are fixed,and the plant manager uses the average cost per unit to predict total costs,his forecast for 2,200 birdhouses will be:

Feathered Nests produces decorative birdhouses.The company's average cost per unit is $20.00 at a production level of 2,000 birdhouses.What is the total cost of producing 2,000 birdhouses?

Feathered Nests produces decorative birdhouses.The company's average cost per unit is $20.00 when it produces 2,000 birdhouses.If $4,800 of the costs are fixed,and the plant manager uses the cost equation to predict total costs,his forecast for 2,200 birdhouses will be:

YouCall offers a calling plan that charges $2.00 per month plus $0.05 per minute of call time.Under this plan,what is your monthly cost if you talk for a total of 100 minutes?