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18.
When using a flexible budget, a decrease in production levels
within a relevant range
19.
A delivery company is implementing a system to compare
the costs of purchasing and operating different vehicles in its fleet.
Truck 415 is driven 125,000 miles per year at a variable cost of
$0.13 per mile. Truck 415 has a capacity of 28,000 pounds and
delivers 250 full loads per year. What amount is the truck's
delivery cost per pound?
20.
Sender, Inc. estimates parcel mailing costs using the data
shown on the chart below. What is Sender's estimated cost for
mailing 12,000 parcels?
21.
When production levels are expected to increase within a
relevant range, and a flexible budget is used, what effect would be
anticipated with respect to each of the following costs?
22.
Day Mail Order Co. applied the high-low method of cost
estimation to customer order data for the first 4 months of 2005.
What is the estimated variable order filling cost component per
order?
23.
When production levels are expected to decline within a
relevant range, and a flexible budget is used, what effect would be
anticipated with respect to each of the following?
24.
In an activity-based costing system, cost reduction is
accomplished by identifying and eliminating
25.
Book Co. uses the activity-based costing approach for cost
allocation and product costing purposes. Printing, cutting, and
binding functions make up the manufacturing process. Machinery
and equipment are arranged in operating cells that produce a
complete product starting with raw materials. Which of the
following are characteristic of Book's activity-based costing
approach? I. Cost drivers are used as a basis for cost allocation. II.
Costs are accumulated by department or function for the purposes
of product costing. III. Activities that do not add value to the
product are identified and reduced to the extent possible.