If traditional costing based on direct labor hours is used, how much overhead is
ID: 2564640 • Letter: I
Question
If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year? a. $363462 b. $525000 C. $510000 d. $252500 19. For an activity base to be useful in cost behavior analysis, a. the activity should always be stated in terms of units. b. the activity level should be constant over a period of time. c there should be a correlation between changes in the level of activity and changes in d. the activity should always be stated in dollars. 20. Weatherspoon Company has a product with a selling price per unit of $200, the unit variable cost is $110, and the total monthly fixed costs ar e $3000. Ho much is weatherspoon'scotribution How much is Weatherspoon's contribution margin ratio? a. 150% b. 55% c, 45% d. 182% 21. At the high level of activity in November, 7000 machine hours were run and power costs were $18000. In April, a month of low activity, 2000 machine hours were run and power costs amounted to $9000. Using the high-low method, the estimated fixed cost element of power costs is a. $18000. b. $9000. C. $5400. d. $12600. 22. In applying the high-low method, what is the unit variable cost? MonthMiles Total Cost January 80000 $192000 February 50000 160000Explanation / Answer
19 There should be a correlation between changes in the level of activity and change in costs 20 Selling price 200 Less Variable cost 110 Contribution margin 90 Contribution margin ratio 45% (90/200) Correct answer is C 21 Variable cost per unit = (18000-9000)/(7000-2000) 1.8 Fixed cost = 18000 - 7000*1.8 5400 Correct answer is C 22 Variable cost per unit = (192000-160000)/(80000-50000) 1.066666667