33) The controller of Menno Corp presents you with the following observations in a general ledger account called Maintenance:
Month
|
Machine - hours
|
Maintenance Costs Incurred
|
January
|
6,000
|
$4,000
|
February
|
8,000
|
4,750
|
March
|
8,500
|
4,900
|
April
|
9,000
|
5,000
|
May
|
7,000
|
4,400
|
June
|
10,000
|
5,400
|
Using the high-low method, what will the total monthly manufacturing costs be if the company produces 7,500 units?
A) $2,625
B) $5,555
C) $4,525
D) $4,050
34) Gourmet College has recently opened a restaurant as part of its hospitality major. The manager gathered the following data from the first five weeks of operations. Knowing you are currently taking a managerial accounting course he has asked that you analyze the data.
Week
|
Number of customers per week
|
Weekly total restaurant costs incurred
|
1
|
1,500
|
$33,600
|
2
|
1,600
|
35,850
|
3
|
1,750
|
38,455
|
4
|
1,633
|
36,204
|
5
|
1,850
|
40,600
|
6
|
1,790
|
39,468
|
Using the high- low method, what would the variable cost per customer be?
A) $22.40
B) $21.95
C) $20.00
D) $0.46
35) Gourmet College has recently opened a restaurant as part of its hospitality major. The manager gathered the following data from the first five weeks of operations. Knowing you are currently taking a managerial accounting course he has asked that you analyze the data.
Week
|
Number of customers per week
|
Weekly total restaurant costs incurred
|
1
|
1,500
|
$33,600
|
2
|
1,600
|
35,850
|
3
|
1,750
|
38,455
|
4
|
1,633
|
36,204
|
5
|
1,850
|
40,600
|
6
|
1,790
|
39,468
|
Using the high-low method, what would the fixed cost per week be?
A) $1,260
B) $3,600
C) $7,785
D) $18,460
36) Gourmet College has recently opened a restaurant as part of its hospitality major. The manager gathered the following data from the first five weeks of operations. Knowing you are currently taking a managerial accounting course he has asked that you analyze the data
Week
|
Number of customers per week
|
Weekly total restaurant costs incurred
|
1
|
1,500
|
$33,600
|
2
|
1,600
|
35,850
|
3
|
1,750
|
38,455
|
4
|
1,633
|
36,204
|
5
|
1,850
|
40,600
|
6
|
1,790
|
39,468
|
Using the high-low method estimate the weekly cost function for the restaurant costs.