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Annette Smith

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AC505 week 8 final exam tutorial numbers 2-17 2. Which costs will change with a decrease in activity within the relevant range? A) Total fixed costs and total variable cost. B) Unit fixed costs and total variable cost. Answer C) Unit variable cost and unit fixed cost. D) Unit fixed cost and total fixed cost. 3. An increase in the activity level within the relevant range results in: A) an increase in fixed cost per unit. B) a proportionate increase in total fixed costs. C) an unchanged fixed cost per unit. D) a decrease in fixed cost per unit. Answer Use the following to answer questions 4-5: The following information has been provided by the Evans Retail Stores, Inc., for the first quarter of the year: …show more content…

What is the unit product cost for the month under variable costing? A) $69 B) $84 C) $89 D) $74 Answer: A DM 13.00 + DL 55.00 + V OH 1.00 = 69.00 14. What is the unit product cost for the month under absorption costing? A) $74 B) $89 C) $69 D) $84 Answer: D DM 13.00 + DL 55.00 + V OH 1.00 + F OH 15.00 = 84.00 F OH = 130,500/8700 15. What is the net income for the month under variable costing? A) $10,600 B) ($17,000) C) $16,600 D) $6,000 Answer: A Sales (8,300 X $92) $763,600 Variable Expenses Beg Inv 0 Var Manu (8,700 X $69) 600,300 Less End Invty (400 X 69) (27,600) Variable CGS (572,700) Variable Selling and Admin (8300 X 5) ( 41,500) Contribution Margin 149,400 Less Fixed Expenses 138,800 Net Income 10,600 16. What is the net income for the month under absorption

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