62) The following data pertain to costs at Richardson Company:
Total fixed costs
|
$750,000
|
Total variable costs
|
$110,000
|
Production level
|
40,000 units
|
The variable cost per unit is:
A) $2.75.
B) $18.75.
C) $21.50.
D) $3.75.
63) The following data pertain to costs at Richardson Company:
Total fixed costs
|
$750,000
|
Total variable costs
|
$110,000
|
Production level
|
40,000 units
|
The average cost per unit is:
A) $2.75.
B) $18.75.
C) $21.50.
D) $3.75.
64) The following data pertain to costs at Masters Company:
Total fixed costs
|
$980,000
|
Total variable costs
|
$212,000
|
Production level
|
80,000 units
|
The variable cost per unit is:
A) $12.25.
B) $14.90.
C) $2.35.
D) $2.65
65) The following data pertain to costs at Masters Company:
Total fixed costs
|
$980,000
|
Total variable costs
|
$212,000
|
Production level
|
80,000 units
|
The average cost per unit is:
A) $12.25.
B) $14.90.
C) $2.35.
D) $2.65
1) When performing account analysis, managers decide how to classify each account as a variable, fixed or mixed cost.
2) Indirect materials would likely be classified as fixed costs.
3) If the data points in a scatter plot fall in a fairly straight line, it means that there is a fairly week relationship between cost and volume.
4) If there is little or no relationship between the cost and volume, the data points on a scatter plot will appear almost random.
5) A scatter plot helps managers visualize the relationship between historical costs and volume.
6) A scatter plot will not help managers identify potential outliers.