Assessment Brief 1. A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3,600 and is paid at the beginning of the first year. Eighty percent of the premium applies to manufacturing operations and twenty percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage? ProductPeriod A$3,600$0B$2,880$720C$1,920$480D$960$2402. At an activity level of 8,600 machine-hours in a month, Nooner Corporation’s total variable production engineering cost is $734,440 and its total fixed production engineering cost is $154,000. What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 8,800 machine-hours in a month? Assume that this level of activity is within the relevant range. (Do not round intermediate calculations.)A$102.90B$102.01C$102.55D$103.083.Buckeye Company has provided the following data for maintenance cost:Prior YearCurrent Year Machine hours18,500 21,100 Maintenance cost$30,500 $34,140 Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are closest to: A.$30,500 per year plus $1.40 per machine hourB$29,540 per year plus $.714 per machine hourC$4,600 per year plus $.714 per machine hourD$4,600 per year plus $1.40 per machine hour4.A soft drink bottler incurred the following factory utility cost: $3,436 for 1,050 cases bottled and $3,548 for 1,700 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:A$3.27B$0.17C$2.09D$2.025. Supply costs at Lattea Corporation’s chain of gyms are listed below:Client-VisitsSupply Cost March11,662 $28,576 April11,458 $28,410 May11,990 $28,834 June13,500 $28,922 July11,722 $28,637 August11,208 $28,236 September12,002 $28,835 October11,693 $28,593 November11,841 $28,718 Management believes that supply cost is a mixed cost that depends on client-visits. Use the high-low method to estimate the variable and fixed components of this cost, Compute the variable component first, rounding off to the nearest whole cent. Then compute the fixed component, rounding off to the nearest whole dollar. Those estimates would be closest to: (Round your Variable cost per unit to 2 decimal places.)A$1.99 per client-visit; $28,638 per monthB$.88 per client-visit; $17,814 per monthC$0.34 per client-visit; $24,367 per monthD$0.30 per client-visit; $24,872 per month6.Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume10,500 units12,000 units Direct materials$647,850$740,400 Direct labor$183,750$210,000 Manufacturing overhead$1,009,000$1,026,850The best estimate of the total monthly fixed manufacturing cost is: (Do not round intermediate calculations.)A$891,550B$884,050C$881,050D$887,050Bottom of Form7.Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume10,500 units12,000 units Direct materials$647,850$740,400 Direct labor$183,750$210,000 Manufacturing overhead$1,009,000$1,026,850The best estimate of the total monthly fixed manufacturing cost is: (Do not round intermediate calculations.)A$881,050B$891,550C$884,050D$887,0508.Nikkel Corporation, a merchandising company, reported the following results for July: Sales$419,000 Cost of goods sold (all variable)$175,500 Total variable selling expense$23,600 Total fixed selling expense$17,200 Total variable administrative expense$15,400 Total fixed administrative expense$31,400 The gross margin for July is:A$204,500B$370,400C$243,500D$155,9009. Nikkel Corporation, a merchandising company, reported the following results for July: Sales$447,000 Cost of goods sold (all variable)$170,500 Total variable selling expense$20,100 Total fixed selling expense$21,600 Total variable administrative expense$8,500 Total fixed administrative expense$31,300 The contribution margin for July is:A$276,500B$394,100C$195,000D$247,90010. Salvadore Inc., a local retailer, has provided the following data for the month of September: Merchandise inventory, beginning balance$ 42,700 Merchandise inventory, ending balance$ 42,400 Sales$261,700 Purchases of merchandise inventory$138,500 Selling expense$ 16,900 Administrative expense$ 61,000 The net operating income for September was:A$45,000B$123,200C$53,200D$124,20011. Lettman Corporation has provided the following partial listing of costs incurred during November: Marketing salaries$52,900 Property taxes, factory$9,200 Administrative travel$104,500 Sales commissions$51,200 Indirect labor$44,400 Direct materials$171,900 Advertising$147,400 Depreciation of production equipment$42,000 Direct labor$90,900 Required:a.What is the total amount of product cost listed above?b.What is the total amount of period cost listed above? 12. Corio Corporation reports that at an activity level of 4,400 units, its total variable cost is $283,096 and its total fixed cost is $136,710.Required:For the activity level of 4,500 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per...
