56) The total fixed cost is

A) $39,250.

B) $17,816.

C) $2,200.

D) $536.

57) The cost function would be stated as

A) Y = $ 2,200 + $2.80X.

B) Y = $17,816 + $0.36X.

C) Y = $   536 + $3.06X.

D) Y = $39,250 + $0.33X.

58) The total cost at an operating level of 10,000 units would be

A) $31,136.

B) $30,200.

C) $21,416.

D) $42,550.

The Vern Corporation has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable.  Vern Corporation has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.

Cost

Hours

$20,000

7,000

12,200

4,000

17,000

5,200

15,640

4,900

18,200

6,000

22,080

7,800

21,200

7,480

18,600

6,760

59) The variable cost per unit is

A) $0.38.

B) $0.46.

C) $2.60.

D) $2.16.

60) The total fixed cost is

A) $13,386.

B) $10,680.

C) $5,056.

D) $1,800.

61) The cost function would be stated as

A) Y = $13,386 + $0.46X.

B) Y = $10,680 + $0.38X.

C) Y = $ 5,056 + $2.16X.

D) Y = $ 1,800 + $2.60X.

The Stewart Company used regression analysis to predict the annual cost of utilities.  The results were as follows:

Utilities Cost

Explained by Machine Hours

Constant    

  $16,650

Standard error of Y estimate 

    $  3,726

R-squared 

0.9436

No. of observations    

24

Degrees of freedom  

22

X coefficient(s)    

7.16

Standard error of coefficient(s)  

0.458329

62) The total fixed cost is

A) $16,650.

B) $15,711.

C) $ 6,652.

D) $ 3,726.

63) The variable cost per machine hour is

A) $1.86.

B) $0.96.

C) $7.16.

D) $0.46.

64) The linear cost function is

A) Y = $16,650 + $7.16X.

B) Y = $15,711 + $1.86X.

C) Y = $ 3,726 + $0.96X.

D) Y = $ 6,562 + $0.46X.

65) The coefficient of determination is

A) 0.458329.

B) 22.

C) 7.16.

D) 0.9436.



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