Pre-Assignment Practice
CHAPTER 1 ACCT2001
1. Perkey Corporation has provided the following information:
Cost per Cost per
Unit Period
Direct materials $ 5.00
Direct labor $ 2.90
Variable manufacturing overhead $ 1.25
Fixed manufacturing overhead $ 21,000
Sales commissions $ 1.00
Variable administrative expense $ 0.55
Fixed selling and administrative expense $ 7,500
If 4,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
O $53,400
O $35,600
O $36,600
O $31,600
2. 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:
Average Cost per Unit
Direct materials $ 5.25
Direct labor $ 4.05
Variable manufacturing overhead $ 1.30
Fixed manufacturing overhead $ 3.00
Fixed selling expense $ 0.70
Fixed administrative expense $ 0.40
Sales commissions $ 0.50
Variable administrative expense $ 0.45
If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest
to:
O $15,000
O $22,800
O $7,800
O $25,800
PRE-ASSIGNMENT PRACTICE | Chapter 1 ACCT2001
3. The following costs were incurred in May:
Direct materials $ 41,000
Direct labor $ 13,000
Manufacturing overhead$ 46,000
Selling expenses $ 18,000
Administrative expenses $ 15,000
Conversion costs during the month totaled:
O $54,000
O $133,000
O $59,000
O $87,000
4. The following costs were incurred in May:
Direct materials $ 33,000
Direct labor $ 13,000
Manufacturing overhead$ 23,000
Selling expenses $ 16,000
Administrative expense $ 34,000
Prime costs during the month totaled:
O $36,000
O $119,000
O $69,000
O $46,000
PRE-ASSIGNMENT PRACTICE | Chapter 1 ACCT2001
5. Phaup 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:
Average Cost per Unit
Direct materials $ 4.85
Direct labor $ 4.00
Variable manufacturing overhead $ 1.75
Fixed manufacturing overhead $ 3.90
Fixed selling expense $ 0.90
Fixed administrative expense $ 0.60
Sales commissions $ 0.50
Variable administrative expense $ 0.45
For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is
closest to:
O $8,200
O $12,250
O $7,500
O $4,750
6. Timchak Corporation reports that at an activity level of 9,900 units, its total variable cost is
$919,116 and its total fixed cost is $259,974. What would be the total cost, both fixed and
variable, at an activity level of 10,100 units? Assume that this level of activity is within the
relevant range. (Round intermediate calculations to 2 decimal places.)
O $1,197,658
O $1,191,000
O $1,179,090
O $1,202,910
PRE-ASSIGNMENT PRACTICE | Chapter 1 ACCT2001
7. Kipling 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:
Average
Cost per
Unit
Direct materials $ 4.85
Direct labor $ 4.20
Variable manufacturing overhead $ 1.55
Fixed manufacturing overhead $ 9.00
Fixed selling expense $ 3.15
Fixed administrative expense $ 1.80
Sales commissions $ 0.50
Variable administrative expense $ 0.45
If the selling price is $25.00 per unit, the contribution margin per unit sold is closest to:
O $13.45
O ($0.50)
O $5.40
O $15.95
8. Supply costs at Coulthard Corporation's chain of gyms are listed below:
Client-Visits Supply Cost
March 11,648 $ 28,560
April 11,581 $ 28,510
May 11,976 $ 28,802
June 12,100 $ 28,894
July 11,708 $ 28,604
August 11,194 $ 28,224
September 11,988 $ 28,811
October 11,679 $ 28,582
November 11,827 $ 28,692
Management believes that supply cost is a mixed cost that depends on client-visits. Use the high-low
method to estimate the variable and fixed components of this cost. Compute the variable component
first. Then compute the fixed component, rounding off to the nearest whole dollar. Those estimates
are closest to: (Round your intermediate calculations to 2 decimal places.)
Garrison 17e Rechecks 2021-11-23
O $2.43 per client-visit; $28,605 per month
O $1.32 per client-visit; $12,882 per month
O $0.78 per client-visit; $19,435 per month
O $0.74 per client-visit; $19,940 per month
PRE-ASSIGNMENT PRACTICE | Chapter 1 ACCT2001
ANSWERS:
1. $31,600
2. $22,800
3. $59,000
4. $46,000
5. $12,250
6. $1,197,658
7. $13.45
8. $0.74 per client-visit; $19,940 per month
PRE-ASSIGNMENT PRACTICE | Chapter 1 ACCT2001
