Salem Company has the following costs information for June where production volume is 2,000 units: Direct materials Direct labor $8,500 $9,000 $800 Straight-line depreciation Rent expenses other fixed costs 7. The variable cost and fixed cost per unit respectively are: A) $8.75 and $1.50. B) $8.75 and $0.25. C) $4.25 and $3.00. D) $8.50 and $12.00. B) fixed cost per unit. C) total variable cost. D) total cost per unit. $1,200 $1,000 8. If production changes to 2,200 units, which cost will remain the same? A) variable cost per unit.

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...
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Salem Company has the following costs information for June where production volume is 2,000
units:
7. The variable cost and fixed cost per unit respectively are:
A) $8.75 and $1.50.
B) $8.75 and $0.25.
C) $4.25 and $3.00.
D) $8.50 and $12.00.
B) fixed cost per unit.
C) total variable cost.
D) total cost per unit.
A) 1,000
B) 1,800
Direct materials
Direct labor
8. If production changes to 2.200 units, which cost will remain the same?
A) variable cost per unit.
C) 3,200
D) 2,600
Straight-line depreciation
Rent expenses
other fixed costs
9.The production budget shows expected unit sales of 16,000. Beginning finished goods units are 1,800.
Required production units are 16,800. What are the desired ending finished goods units?
A)
B)
D)
10. The production budget shows expected unit sales are 50,000. The required production units are 52,000.
What are the beginning and desired ending finished goods units, respectively?
Ending Units
2,000
5,000
$8,500
$9,000
5800
Beginning Units
5,000
3.000
$1,200
$1,000
3,000
5,000
5,000
2,000
C) Manufacturing overhead budget
D) Budgeted balance sheet
11. Which of the following is not a financial budget?
A) Capital expenditure budget
B) Cash budget
12. A manager that is establishing objectives is performing which management function?
A) Controlling
B) Directing
C) Planning
D) Constraining
Transcribed Image Text:Salem Company has the following costs information for June where production volume is 2,000 units: 7. The variable cost and fixed cost per unit respectively are: A) $8.75 and $1.50. B) $8.75 and $0.25. C) $4.25 and $3.00. D) $8.50 and $12.00. B) fixed cost per unit. C) total variable cost. D) total cost per unit. A) 1,000 B) 1,800 Direct materials Direct labor 8. If production changes to 2.200 units, which cost will remain the same? A) variable cost per unit. C) 3,200 D) 2,600 Straight-line depreciation Rent expenses other fixed costs 9.The production budget shows expected unit sales of 16,000. Beginning finished goods units are 1,800. Required production units are 16,800. What are the desired ending finished goods units? A) B) D) 10. The production budget shows expected unit sales are 50,000. The required production units are 52,000. What are the beginning and desired ending finished goods units, respectively? Ending Units 2,000 5,000 $8,500 $9,000 5800 Beginning Units 5,000 3.000 $1,200 $1,000 3,000 5,000 5,000 2,000 C) Manufacturing overhead budget D) Budgeted balance sheet 11. Which of the following is not a financial budget? A) Capital expenditure budget B) Cash budget 12. A manager that is establishing objectives is performing which management function? A) Controlling B) Directing C) Planning D) Constraining
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