# Chapter 002, Managerial Accounting and Cost Concepts

| October 3, 2018

118. To the nearest whole
dollar, what should be the total sales commissions at a sales volume of 38,300
units? (Assume that this sales volume is within the relevant range.)

A.
\$199,160

B. \$175,958

C.
\$193,180

D.
\$187,200

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Chapter 002, Managerial Accounting and Cost Concepts

119. To the nearest whole cent, what should be the average sales
commission per unit at a sales volume of 36,400 units? (Assume that this sales
volume is within the relevant range.)

A.
\$5.20

B. \$4.89

C.
\$5.17

D.
\$5.14

At a sales volume of 37,000
units, Bonham Corporation’s property taxes (a cost that is fixed with respect
to sales volume) total \$555,000.

120. To the nearest whole dollar, what should be the total property
taxes at a sales volume of 34,900 units? (Assume that this sales volume is
within the relevant range.)
A. \$539,250
B. \$588,395 C. \$523,500 D. \$555,000

121. To the nearest whole cent, what should be the average property tax
per unit at a sales volume of 38,600 units? (Assume that this sales volume is
within the relevant range.) A. \$15.00
B. \$14.38
C. \$15.90 D. \$14.69

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Chapter 002, Managerial Accounting and Cost Concepts

Mire
Corporation staffs a helpline to answer questions from customers. The costs of
operating the helpline are variable with respect to the number of calls in a
month. At a volume of 29,000 calls in a month, the costs of operating the
helpline total \$171,100.

122. To the nearest whole dollar, what should be the total cost of
operating the helpline costs at a volume of 31,200 calls in a month? (Assume
that this call volume is within the relevant range.)
A. \$171,100
B. \$177,590 C. \$184,080 D. \$159,035

123. To the nearest whole cent, what should be the average cost of
operating the helpline per call at a volume of 27,500 calls in a month? (Assume
that this call volume is within the relevant range.)
A. \$5.48 B.
\$5.90 C. \$6.22 D. \$6.06

Henscheid Corporation leases
its corporate headquarters building. This lease cost is fixed with respect to
the company’s sales volume. In a recent month in which the sales volume was
33,000 units, the lease cost was \$283,800.

124. To the nearest whole dollar, what should be the total lease
cost at a sales volume of 35,300 units in a month? (Assume that this sales
volume is within the relevant range.)
A. \$283,800
B.
\$293,690

C. \$303,580

D.
\$265,309

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Chapter 002, Managerial Accounting and Cost Concepts

125. To the nearest whole cent, what should be the average lease
cost per unit at a sales volume of 31,600 units in a month? (Assume that this
sales volume is within the relevant range.)
A. \$8.04
B.
\$8.98

C. \$8.79

D.
\$8.60

The
following cost data pertain to the operations of Lefthand Department Stores,
Inc., for the month of December.
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The Brentwood Store is just one of many stores owned and operated
by the company. The Shoe Department is one of many departments at the Brentwood
Store. The central warehouse serves all of the company’s stores.

126. What is the total amount of the costs listed above that are
direct costs of the Shoe Department?

A.
\$43,000

B. \$35,000

C.
\$79,000

D.
\$40,000

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Chapter 002, Managerial Accounting and Cost Concepts

127. What is the total amount of the costs listed above that are
NOT direct costs of the Brentwood Store?

A.
\$78,000

B. \$43,000

C.
\$162,000

D.
\$36,000

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