Ac505 Ch02 Exam

Garrison 14e Practice Exam – Chapter 2

Print these pages. Answer each of the following questions, explaining your answers or showing your work, and then compare your solutions to those provided at the end of the practice exam.

1. For each of the following, indicate whether the cost would typically be variable or fixed.

| |Variable |Fixed |

|Direct materials | | |

|Direct labor | | |

|Rent on building | | |

|Supervisor salaries | | |

|Sales commissions based on units sold | | |

2. Das Doors Inc. has recorded the following costs for utilities at various volumes of production:

|Production |Total |

|Volume |Utilities Costs |

|600,000 |$700,000 |

|400,000 | 500,000 |

|200,000 |300,000 |

Prepare a scattergraph to estimate the cost function for utilities costs.

3. Petrarca Company incurred $20,000 to ship 2,000 pounds and $27,500 to ship 3,000 pounds. If the company ships 2,500 pounds, what is its total expected shipping expense?

4. The following information has been provided by the Fasan Florist, Inc. for the first quarter of the year:

|Cost of goods sold |$ 640,000...