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This is solved practice exam. Answers and questions, both are given in file. Main points are: Shipping Costs , Mixed Cost, Activity Level, Relevant Range, Selling Price, Administrative Expense, Sales Commission, Advertising Expense, Buffo Plans, Expected Contribution
Typology: Exercises
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Use the following to answer questions 3- Buffo Company fabricates metal folding chairs. Data concerning the company’s revenue and cost structure follow:
Selling price per unit……………………….. $ Manufacturing cost………………………… $4,000 per month plus $17 per unit Administrative expense…………………… $2,500 per month plus $2.5 per unit Sales commission…………………………. 15% of sales Advertising expense………………………. $2,000 per month
Use the following to answer questions 7- Farmer Inc, would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the last four months of operations.
Machine Electrical Hours Cost January…………………………… 30 $ February…………………………. 42 $ March……………………………. 35 $ April…………………………….. 20 $
ANSWERS 1. C 2. C 3. A 4. C 5. D 6. B 7. C 8. D