make 1,200 units but actually made 1,000 units. The sales-volume variance is Question 5. Question:( TCO 3) Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods? Question 6. Question:( TCO 4) In evaluating different alternatives, it is useful to concentrate on Question 7. Question:( TCO 5) Which of the following is a relevant cost to be included in a make-or-buy decision? Question 8. Question:( TCO 5) Konrade ' s Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1,000 units are as follows: Direct materials $ 40,000 Direct labor 10,000 Variable overhead costs 30,000 Fixed overhead costs 20,000 Total costs $ 100,000 It is estimated that 10 % of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier. Konrade ' s Engine Company has the option of purchasing the part from an outside supplier at $ 85 per unit. If Konrade ' s Engine Company accepts the offer from the outside supplier, the monthly avoidable costs( costs that will no longer be incurred) total Question 9. Question:( TCO 3) The cost function y = 100 + 10X Question 10. Question:( TCO 4) Opportunity costs Question 1. Question:( TCO 1) For each of the following activities, identify an appropriate activity-cost driver. a. machine maintenance b. machine setup c. quality control material ordering d. production scheduling e. warehouse expense f. engineering design Question 2. Question:( TCO 2) Lubriderm Corporation has the following budgeted sales for the next six-month period: Month
Unit Sales