1. John Anderson uses gas to heat his home. He has accumulated the following inf
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Question
1. John Anderson uses gas to heat his home. He has accumulated the following information regarding his monthly gas bill and monthly heating degree-days. The heating degree-days value for a month is found by first subtracting the average temperature for each day from 65 degrees and then summing these daily amounts together for the month.
Month
Heating Degree-Days
Gas Bill
February
850
$129
April
300
$ 52
What will be the increase in John's monthly gas bill per heating degree-day using the high-low method?
Select one:
A. $0.17
B. $6.59
C. $0.14
D. $5.77
2. All of the following are examples of activity cost drivers except
Select one:
A. placing a purchase order for raw materials.
B. providing employees with cost information and authorizing them to make decisions.
C. inspecting incoming raw materials.
D. hiring and training a new employee.
3. Bloomington Corporation reported the following on their contribution format income statement:
Sales (12,000 units)
$175,000
Less: Variable expenses
100,000
Contribution margin
75,000
Less: Fixed expenses
62,500
Net operating income
$ 12,500
What is the unit contribution margin?
Select one:
A. $10.00
B. $ 6.25
C. $ 6.75
D. $17.00
4. Which of the following is an example of an organizational cost driver?
Select one:
A. Deciding how to arrange raw materials inventory within a warehouse
B. Inspecting incoming raw materials
C. Determining the best location for a manufacturing facility
D. Receiving raw materials into the warehouse
E. None of the above
5. Which of the following is an example of a structural cost driver?
Select one:
A. Deciding how to arrange raw materials inventory within a warehouse
B. Moving items being manufactured between workstations
C. Determining the best location for a manufacturing facility
D. Placing a purchase order for raw materials
E. None of the above
6. Product or service differentiation involves
Select one:
A. shifting sales to growing markets.
B. the use of new technologies in manufacturing.
C. creating something that is perceived as unique and worth a premium price.
D. any changes made to a product or service.
7. Which of the following is an example of an activity cost driver?
Select one:
A. Deciding how to arrange raw materials inventory within a warehouse
B. Designing components of a product so they can fit together only in the correct manner
C. Determining the best location for a manufacturing facility
D. Receiving raw materials into the warehouse
E. None of the above
8. A code of ethics should do which of the following?
Select one:
A. Provide a summary of a company's policies that define ethical standards of employee conduct
B. Include broad philosophical statements about behavior
C. Provide a common foundation for addressing ethical issues
D. All of the above
9. Axe Manufacturers produces a product with the following manufacturing cost hierarchy for its only current product.
Activity Level
Cost
Unit
10
per unit
Batch
250
per batch
Product
5,000
per year
Facility
25,000
per year
Next year Axe plans to manufacture 25,000 units of product, in batches of 250 units.
Axe’s predicted manufacturing cost for next year is:
Select one:
A. $330,000
B. $305,000
C. $750,000
D. $735,500
Month
Heating Degree-Days
Gas Bill
February
850
$129
April
300
$ 52
Explanation / Answer
As per chegg guidelines we answer one question per post. But I have answered multiple questions. Kindly post remaining questions in next post Q1 C. $0.14 Cost at highest level of activity 129.00 Cost at Lowest level of activity 52.00 Highest level of activity 850.00 Lowest Level of activity 300.00 Variable cost per unit = (129 - 52)/(850 - 300) Variable cost per unit = 77/550 Variable cost per unit = $.14 Q3 B. $ 6.25 Contribution margin 75,000.00 No of units 12,000.00 Contribution margin per unit = 75000/12000 6.25
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