harris company produces a single product last year harris manufactured 17 000 units 526395

Student ID: 21535917 Exam: 061682RR – COSTS AND DECISION MAKING When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam. Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer.   1. A cost driver is A. the largest single category of cost in a company. B. a fixed cost that can’t be avoided. C. a factor that causes variations in a cost. D. an indirect cost that’s essential to the business.   2. Use the following information to answer this question. Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows: Production Cost Data Direct materials $153,000 Direct labor $110,500 Variable manufacturing overhead $204,000 Fixed manufacturing overhead $255,000 Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company’s net operating income for the year would be _______ than under absorption costing. A. $60,000 lower B. $60,000 higher C. $108,000 lower D. $108,000 higher   3. Use the following information to answer this question. Callaham Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $115.80 per unit.   Sales volume (units)4,000 5,000 Cost of sales $338,000 $422,500 Selling and administrative costs $89,600 $106,000 The best estimate of the total contribution margin when 4,300 units are sold is A. $64,070. B….