Question

Cost Behavior, High-Low Method, Pricing Decision Fonseca, Ruit, and Dunn is a large local accounting firm located in a southwestern city. Carles Ruiz.one of the believes that an inexpensive accounting services in could provide basic c ong services for founders, appreciate t h e form haserre and wants to the barre Me wants to pice the service n how to charge perherowongeng ba w Since the clinic is brand new it has no experience to go on Carlos decided to opere the dink for moder hourly charge of $25. hall the amount charged by Fonseca R and Dann for profesional bad this conte a n The accounting service clinic opened on January 1. During January, the dine ad 1.20 hours of professional service. During February. the y was 150 hour. Ces for these 120 Professional 150 Professional Salaries Senior accountant Office assistant Internet and software subscriptions Consulting by senior partner Depreciation (equipment) Administration Rent (offices Utilities Required: 1. Classify each cost as foed varable, or med. Nours of professoralnica Salaries

Answer 1

PARTICULARS	CATEGORY	AMOUNT
SALARIES:
SENIOR ACCOUNTANT	FIXED	$ 2,500.00
OFFICE ACCOUNTANT	FIXED	$ 1,200.00
INTERNET AND SOFTWARE SUBSCRIPTIONS	MIX
FIXED PORTION		$     100.00
VARIABLE PORTION PER HOUR		$          5.00
CONSULTANCY BY SENIOR PARTNER	VARIABLE	$        10.00
DEPRECIATION (EQUIPMENT)	FIXED	$ 2,400.00
SUPPLIES	MIX
FIXED PORTION		$     125.00
VARIABLE PORTION PER HOUR		$          6.50
ADMINISTRATION	FIXED	$     500.00
RENT	FIXED	$ 2,000.00
UTILITIES	MIX
FIXED PORTION		$     200.00
VARIABLE PORTION PER HOUR		$          1.10

INTERNET AND SOFTWARE SUBSCRIPTIONS
120 HOURS	$     700
150 HOURS	$     850
30 HOURS	$     150
PER HOUR RATE	$          5
FIXED	$     100
700 - (120*5)
SUPPLIES
120 HOURS	$     905
150 HOURS	$ 1,100
30 HOURS	$     195
PER HOUR RATE	$    6.50
FIXED	$     125
905 - (120 *6.5)

UTILITIES
120 HOURS	$     332
150 HOURS	$     365
30 HOURS	$        33
PER HOUR RATE	$    1.10
FIXED	$     200
332 - (120 * 1.10)

PARTICULARS	CATEGORY	AMOUNT	VARIABLE	FIXED	TOTAL COST
SALARIES:
SENIOR ACCOUNTANT	FIXED	$ 2,500.00		$             2,500.00	$    2,500.00
OFFICE ACCOUNTANT	FIXED	$ 1,200.00		$             1,200.00	$    1,200.00
INTERNET AND SOFTWARE SUBSCRIPTIONS	MIX
FIXED PORTION		$     100.00		$                100.00	$        100.00
VARIABLE PORTION PER HOUR		$          5.00	$     700.00		$        700.00
CONSULTANCY BY SENIOR PARTNER	VARIABLE	$        10.00	$ 1,400.00		$    1,400.00
DEPRECIATION (EQUIPMENT)	FIXED	$ 2,400.00		$             2,400.00	$    2,400.00
SUPPLIES	MIX
FIXED PORTION		$     125.00		$                125.00	$        125.00
VARIABLE PORTION PER HOUR		$          6.50	$     910.00		$        910.00
ADMINISTRATION	FIXED	$     500.00		$                500.00	$        500.00
RENT	FIXED	$ 2,000.00		$             2,000.00	$    2,000.00
UTILITIES	MIX
FIXED PORTION		$     200.00		$                200.00	$        200.00
VARIABLE PORTION PER HOUR		$          1.10	$     154.00		$        154.00
			$ 3,164.00	$             9,025.00	$ 12,189.00
				TOTAL HOURS	140
				PER HOUR RATE	$          87.06