Management Accounting
Use the following to answer question 1:
Marger, Inc., provided the following data for two recent months:
[pic]
|1. |Which of the following classifications best describes the behavior of Cost T? |
|A) |Variable |
|B) |Fixed |
|C) |Mixed |
|D) |None of the above |
|2. |The following data pertains to activity and maintenance costs for two recent years: |
| | |
| |[pic] |
| |Using the high-low method, the cost formula for maintenance would be: |
|A) |$1.50 per unit. |
|B) |$1.25 per unit. |
|C) |$3,000 plus $1.50 per unit. |
|D) |$6,000 plus $0.75 per unit. |
|3. |Rible Company has observed that at an activity level of 8,000 units the cost for maintenance
Marger, Inc., provided the following data for two recent months:
[pic]
|1. |Which of the following classifications best describes the behavior of Cost T? |
|A) |Variable |
|B) |Fixed |
|C) |Mixed |
|D) |None of the above |
|2. |The following data pertains to activity and maintenance costs for two recent years: |
| | |
| |[pic] |
| |Using the high-low method, the cost formula for maintenance would be: |
|A) |$1.50 per unit. |
|B) |$1.25 per unit. |
|C) |$3,000 plus $1.50 per unit. |
|D) |$6,000 plus $0.75 per unit. |
|3. |Rible Company has observed that at an activity level of 8,000 units the cost for maintenance