A manufacturing company prepays its insurance coverage for a three-year period 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? Product Period A$3,600 $0 B$2,880 $720 C$1,920 $480 D$960 $240 2. 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$102.90 B$102.01 C$102.55 D$103.08 3.Buckeye Company has provided the following data for maintenance cost: Prior Year Current Year Machine hours 18,500 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 hour B$29,540 per year plus $.714 per machine hour C$4,600 per year plus $.714 per machine hour D$4,600 per year plus $1.40 per machine hour 4.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$3.27 B$0.17 C$2.09 D$2.02 5. Supply costs at Lattea Corporation’s chain of gyms are listed below: Client-Visits Supply Cost March 11,662 $28,576 April 11,458 $28,410 May 11,990 $28,834 June 13,500 $28,922 … Read more
