Scorpio Company's for the first five months of the current year follows: Using high-low method, how much is the cost per machine hour
CHAPTER 22 COST-VOLUME-PROFIT RELATIONSHIPS SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM’S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements 1. 1 K 9. 2 C 17. 4 K 25. 7 K sg33. 3 K 2. 1 K 10. 3 K 18. 5 K 26. 8 K sg34. 5 C 3. 1 K 11. 3 K 19. 5 K 27. 9 K sg35. 6 K 4. 1 C 12. 3 C 20. 5 K 28. 9 K sg36. 8 K 5. 1 C 13. 3 K 21. 5 K a29. 10 K sg37. 9 K 6. 1 C 14. 3 C 22. 6 K a30. 10 K 7. 2 K 15. 3 K 23. 6 K sg31. 1 K 8. 2 K 16. 4 K 24. 6 AP sg32. 1 K Multiple Choice Questions 38. 1 C 61. 2 K 84. 4 C 107. 6 C 130. 8 K 39. 1 K 62. 2 C 85. 4 C 108. 6 AP 131. 8 C 40. 1 K 63. 2 C 86. 5 AP 109. 6 AP 132. 9 AP 41. 1 C 64. 3 AP 87. 5 K 110. 6 C 133. 9 C 42. 1 C 65. 3 K 88. 5 AP 111. 6 K 134. 9 K 43. 1 K 66. 3 AP 89. 5 C 112. 7 AP 135. 9 K 44. 1 C 67. 3 AP 90. 5 AP 113. 7 AP a136. 10 K 45. 1 C 68. 3 C 91. 5 AP 114. 7 AP a137. 10 K 46. 1 K 69. 3 C 92. 5 AP 115. 7 AP a138. 10 C 47. 1 C 70. 3 K 93. 5 AP 116. 7 AP sg139. 2 K 48. 1 C 71. 3 C 94. 5 AP 117. 7 AP st140. 3 K 49. 1 K 72. 3 AP 95. 5 AP 118. 7 AP sg141. 3 AP 50. 1 C 73. 3 AP 96. 5 AP 119. 7 AP st142. 4 K 51. 1 K 74. 3 AP 97. 5 AP 120. 7 AP sg143. 5 C 52. 1 C 75. 3 K 98. 6 AP 121. 7 AP st144. 5 K 53. 1 C 76. 3 K 99. 6 AP 122. 7 AP sg145. 6 AP 54. 1 C 77. 3 C 100. 6 AP 123. 8 AP st146. 6 K 55. 1 C 78. 3 AP 101. 6 AP 124. 8 AP sg147. 7 AP 56. 2 C 79. 3 AP 102. 6 C 125. 8 AP st148. 7 K 57. 2 K 80. 4 K 103. 6 AP 126. 8 AP sg149. 8 AP 58. 2 C 81. 4 K 104. 6 AP 127. 8 AP sg150. 9 AP 59. 2 C 82. 4 C 105. 6 K 128. 8 AP sg,a151. 10 AP 60. 2 C 83. 4 K 106. 6 C 129. 8 AP Brief Exercises 152. 3 AP 154. 5 AP 156. 6 AP 158. 6 AP 160. 7 AP 153. 5 AP 155. 5 AP 157. 6 AP 159. 7 AP 161. 8 AP sg This question also appears in the Study Guide. st This question also appears in a self-test at the student companion website. a This question covers a topic in an appendix to the chapter. Test Bank for Accounting Principles, Eighth Edition 22 - 2 SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM’S TAXONOMY Exercises 162. 1,3 AP 167. 3 AP 172. 5 AP 177. 6 AP 182. 8 AP 163. 1,3,6,8 AP 168. 4 AN 173. 5,6,7 AN 178. 6,7,8 AP 183. 7 AP 164. 1,3,5,6 AN 169. 4 E 174. 5,6,7 AN 179. 6,8,9 AP 184. 7,9 AP 165. 2 AP 170. 4,6,7 AN 175. 5,6 AP 180. 6,7 AP a185. 9,10 AN 166. 3 AP 171. 5 AP 176. 5 AP 181. 6,7 C a186. 10 AN Completion Statements 187. 1 K 190. 1 K 193. 3 K 196. 6 K a199. 10 K 188. 1 K 191. 1 K 194. 5 K 197. 8 K a200. 10 K 189. 1 K 192. 2 K 195. 6 K 198. 9 K SUMMARY OF STUDY OBJECTIVES BY QUESTION TYPE Item Type Item Type Item Type Item Type Item Type Item Type Item Type Study Objective 1 1. TF 6. TF 40. MC 45. MC 50. MC 55. MC 188. C 2. TF 31. TF 41. MC 46. MC 51. MC 162. Ex 189. C 3. TF 32. TF 42. MC 47. MC 52. MC 163. Ex 190. C 4. TF 38. MC 43. MC 48. MC 53. MC 164. Ex 191. C 5. TF 39. MC 44. MC 49. MC 54. MC 187. C Study Objective 2 7. TF 9. TF 57. MC 59. MC 61. MC 63. MC 165. Ex 8. TF 56. MC 58. MC 60. MC 62. MC 139. MC 192. C Study Objective 3 10. TF 15. TF 67. MC 72. MC 77. MC 152. BE 167. Ex 11. TF 33. TF 68. MC 73. MC 78. MC 162. Ex 193. C 12. TF 64. MC 69. MC 74. MC 79. MC 163. Ex 13. TF 65. MC 70. MC 75. MC 140. MC 164. Ex 14. TF 66. MC 71. MC 76. MC 141. MC 166. Ex Study Objective 4 16. TF 80. MC 82. MC 84. MC 142. MC 169. Ex 17. TF 81. MC 83. MC 85. MC 168. Ex 170. Ex Study Objective 5 18. TF 86. MC 91. MC 96. MC 154. BE 173. Ex 19. TF 87. MC 92. MC 97. MC 155. BE 174. Ex 20. TF 88. MC 93. MC 143. MC 164. Ex 175. Ex 21. TF 89. MC 94. MC 144. MC 171. Ex 176. Ex 34. TF 90. MC 95. MC 153. BE 172. Ex 194. C Study Objective 6 22. TF 100. MC 106. MC 145. MC 164. Ex 178. Ex 23. TF 101. MC 107. MC 146. MC 170. Ex 179. Ex 24. TF 102. MC 108. MC 156. BE 173. Ex 180. Ex 35. TF 103. MC 109. MC 157. BE 174. Ex 181. Ex 98. MC 104. MC 110. MC 158. BE 175. Ex 195. C 99. MC 105. MC 111. MC 163. Ex 177. Ex 196. C Cost-Volume-Profit Relationships 22 - 3 Study Objective 7 25. TF 115. MC 119. MC 147. MC 170. Ex 178. Ex 184. Ex 112. MC 116. MC 120. MC 148. MC 171. Ex 180. Ex 113. MC 117. MC 121. MC 159. BE 173. Ex 181. Ex 114. MC 118. MC 122. MC 160. BE 174. Ex 183. Ex Study Objective 8 26. TF 124. MC 127. MC 130. MC 161. BE 179. Ex 36. TF 125. MC 128. MC 131. MC 163. Ex 182. Ex 123. MC 126. MC 129. MC 149. MC 178. Ex 197. C Study Objective 9 27. TF 37. TF 133. MC 135. MC 151. MC 184. Ex 198. C 28. TF 132. MC 134. MC 150. MC 179. Ex 185. Ex Study Objective a10 a29. TF a136. MC a138. MC a186. Ex a200. C a30. TF a137. MC a185. Ex a199. C Note: TF = True-False BE = Brief Exercise C = Completion MC = Multiple Choice Ex = Exercise The chapter also contains one set of twelve Matching questions and four Short-Answer Essay questions. CHAPTER STUDY OBJECTIVES 1. Distinguish between variable and fixed costs. Variable costs are costs that vary in total directly and proportionately with changes in the activity index. Fixed costs are costs that remain the same in total regardless of changes in the activity index. 2. Explain the significance of the relevant range. The relevant range is the range of activity in which a company expects to operate during a year. It is important in CVP analysis because the behavior of costs is assumed to be linear throughout the relevant range. 3. Explain the concept of mixed costs. Mixed costs increase in total but not proportionately with changes in the activity level. For purposes of CVP analysis, mixed costs must be classified into their fixed and variable elements. One method that management may use to classify