Homework Answers
| a) | |||
| 1) High Low method | |||
| Step 1 | Month | Support Calls | Call Center Cost |
| High Month | 5 | 58 | 710 |
| Low Month | 1 | 40 | $521 |
| Difference | 18 | 189 | |
| Step - 2 Variable cost per support call = 189/18 | $10.50 | ||
| Fixed Cost | |||
| Fixed cost = Highest activity cost – (Variable cost per unit x Highest activity units) | |||
| Month 5 = 710 + ($10.50 x 58 calls) | $101.00 | thousands | |
| Step -3 Fixed Cost per month | $101.00 | thousands | |
| Cost Equation = $101 + $10.50 per support call |
CALL CENTER COST o Month Qonth Month 9 O Month 6 O20 O 595 097lonth 12 Month 4... O Month 1 Call centre Cost 0 10 20 30 40 50 60 70 Support Calls
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Problem 5-52 High-Low Method, Scattergraph (LO 5-4) Cubicle Solutions sells productivity software such as word processors,...
Cubicle Solutions sells productivity software such as word processors, spreadsheets, and personal information managers. Cubicle prides...
Cubicle Solutions sells productivity software such as word processors, spreadsheets, and personal information managers. Cubicle prides itself on customer support and maintains a large call center where customers can call in with technical questions about the installation and use of Cubicle products. Monthly data on the number of support calls and call center costs for the last year have been collected and are shown below (all activities and costs are in thousands): Month Support Calls Call Center Cost 1 40...
value: 1.66 points Cubicle Solutions sells productivity software such as word processors, spreadsheets, and personal informa...
value: 1.66 points Cubicle Solutions sells productivity software such as word processors, spreadsheets, and personal informa can call in with technical questions about the installation and use of Cubicle products. Monthly data on the number of support calls and call center costs for the last year have been collected and Month Support Calls 46 NOWN- Call Center Cost $569 690 680 580 740 700 680 710 700 635 655 640 Required: a. Estimate the monthly fixed costs and the unit...
Problem 5-53 High-Low Method, Scattergraph (LO 5-4) Academy Products manufactures a variety of custom components for...
Problem 5-53 High-Low Method, Scattergraph (LO 5-4) Academy Products manufactures a variety of custom components for use in aircraft navigation and communications systems. The controller has asked for your help in estimating fixed and variable overhead costs for Academy's Rio Puerco plant. The controller tells you that the best cost driver for estimating overhead is machine-hours. Monthly data on machine-hours and overhead costs for the last year have been collected and are shown below: Month Machine-Hours 710,000 980,000 805,000 745,000...
please answer A - E! Thank you! 2-20 Scattergraph; high-low method; cost estimation (LO 2) The...
please answer A - E! Thank you!
2-20 Scattergraph; high-low method; cost estimation (LO 2) The Aust Corporation has gathered the following data on its copy machine costs for the first eight months of the year. Month Number of Copies Total Copy Cost January 40,000 $3,500 February 35,000 $3,200 March 60,000 $4,100 April 80,000 $5,100 May 85,000 $5,600 June 75,000 $4,800 July 82,000 $5,300 August 105,000 $6,000 Required a. Prepare a scattergraph of the cost information and then choose a...
Problem 2-22 High-Low and Scattergraph Analysis [LO2-4, L02-5] Pleasant View Hospital of British Columbia has just...
Problem 2-22 High-Low and Scattergraph Analysis [LO2-4, L02-5] Pleasant View Hospital of British Columbia has just hired a new chief administrator who is anxious to employ sound management and planning techniques in the business affairs of the hospital. Accordingly, she has directed her assistant to summarize the cost structure of the various departments so that data will be available for planning purposes. The assistant is unsure how to classify the utilities costs in the Radiology Department because these costs do...
Required information Exercise 6A-4 High-Low Method; Scattergraph Analysis (LO6-10] (The following information applies to the questions...
Required information Exercise 6A-4 High-Low Method; Scattergraph Analysis (LO6-10] (The following information applies to the questions displayed below.] Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: Month January February March April May June July Units Shipped 4 7 5 6 8 9 1 Total Shipping Expense $ 1,800 $ 2,300 $ 1,700 $ 2,000 $ 2,300 $ 3,400 $ 1,200 2. Using...
requirea iniormaion Exercise 6A-4 High-Low Method: Scattergraph Analysis [L06-10] The following information applies to the questions...
requirea iniormaion Exercise 6A-4 High-Low Method: Scattergraph Analysis [L06-10] The following information applies to the questions displayed below) Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: of 3 Units, Total Shipping MonthShippedExpense s 2,408 $ 2,900 $ 2,300 $ 2,600 s 2,900 $ 3,900 s 1,800 January February Manch April May June uly Exercise 6A-4 Part 2 2. Using the high-low method,...
Required information Exercise 6A-4 High-Low Method; Scattergraph Analysis [LO6-10] The following information applies to the questions...
Required information Exercise 6A-4 High-Low Method; Scattergraph Analysis [LO6-10] The following information applies to the questions displayed below] Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: ShippedExpense s 2,400 s 2,900 s 2,300 s 2,600 $ 2,900 $ 3,900 s 1,800 Month anuary Shipped otal Shippin February March April May une uly Exercise 6A-4 Part 4 4. What factors, other than the...
use scattergraph method, high low method, and the least square regression 247 Cost-Volume-Profit Relationships EXHIBIT SA-5...
use
scattergraph method, high low method, and the least square
regression
247 Cost-Volume-Profit Relationships EXHIBIT SA-5 A Scattergraph Plot for Brentine Hospital Using Microsoft Excel 5:2.000 $10,000 58,000 Maintenance cost 56.000 54.000 52.000 2,000 2000 6.000 4000 Patient Day To prepare a scattergraph plot in Excel, begin by highlighting the data in cells B4 through CIO (as shown in Exhibit 5A-4). From the Charts group within the Insert tab, select the "Scatter" subgroup and then click on the choice that...
Required: 1-a. Prepare a scattergraph using the data given above. Plot cost on the vertical axis...
Required:
1-a. Prepare a scattergraph using the data given above. Plot
cost on the vertical axis and activity on the horizontal axis.
Instructions:
1. On the graph below, use the point tool (January) to
plot units shipped on the horizontal axis and the shipping expense
on the vertical axis.
2. Repeat the same process for the plotter tools
(February to July).
3. To enter exact coordinates, click on the point and
enter the values of x and y.
4. To...
value: 1.66 points Cubicle Solutions sells productivity software such as word processors, spreadsheets, and personal informa can call in with technical questions about the installation and use of Cubicle products. Monthly data on the number of support calls and call center costs for the last year have been collected and Month Support Calls 46 NOWN- Call Center Cost $569 690 680 580 740 700 680 710 700 635 655 640 Required: a. Estimate the monthly fixed costs and the unit...
Problem 5-53 High-Low Method, Scattergraph (LO 5-4) Academy Products manufactures a variety of custom components for use in aircraft navigation and communications systems. The controller has asked for your help in estimating fixed and variable overhead costs for Academy's Rio Puerco plant. The controller tells you that the best cost driver for estimating overhead is machine-hours. Monthly data on machine-hours and overhead costs for the last year have been collected and are shown below: Month Machine-Hours 710,000 980,000 805,000 745,000...
please answer A - E! Thank you!
2-20 Scattergraph; high-low method; cost estimation (LO 2) The Aust Corporation has gathered the following data on its copy machine costs for the first eight months of the year. Month Number of Copies Total Copy Cost January 40,000 $3,500 February 35,000 $3,200 March 60,000 $4,100 April 80,000 $5,100 May 85,000 $5,600 June 75,000 $4,800 July 82,000 $5,300 August 105,000 $6,000 Required a. Prepare a scattergraph of the cost information and then choose a...
Problem 2-22 High-Low and Scattergraph Analysis [LO2-4, L02-5] Pleasant View Hospital of British Columbia has just hired a new chief administrator who is anxious to employ sound management and planning techniques in the business affairs of the hospital. Accordingly, she has directed her assistant to summarize the cost structure of the various departments so that data will be available for planning purposes. The assistant is unsure how to classify the utilities costs in the Radiology Department because these costs do...
Required information Exercise 6A-4 High-Low Method; Scattergraph Analysis (LO6-10] (The following information applies to the questions displayed below.] Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: Month January February March April May June July Units Shipped 4 7 5 6 8 9 1 Total Shipping Expense $ 1,800 $ 2,300 $ 1,700 $ 2,000 $ 2,300 $ 3,400 $ 1,200 2. Using...
requirea iniormaion Exercise 6A-4 High-Low Method: Scattergraph Analysis [L06-10] The following information applies to the questions displayed below) Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: of 3 Units, Total Shipping MonthShippedExpense s 2,408 $ 2,900 $ 2,300 $ 2,600 s 2,900 $ 3,900 s 1,800 January February Manch April May June uly Exercise 6A-4 Part 2 2. Using the high-low method,...
Required information Exercise 6A-4 High-Low Method; Scattergraph Analysis [LO6-10] The following information applies to the questions displayed below] Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: ShippedExpense s 2,400 s 2,900 s 2,300 s 2,600 $ 2,900 $ 3,900 s 1,800 Month anuary Shipped otal Shippin February March April May une uly Exercise 6A-4 Part 4 4. What factors, other than the...
use
scattergraph method, high low method, and the least square
regression
247 Cost-Volume-Profit Relationships EXHIBIT SA-5 A Scattergraph Plot for Brentine Hospital Using Microsoft Excel 5:2.000 $10,000 58,000 Maintenance cost 56.000 54.000 52.000 2,000 2000 6.000 4000 Patient Day To prepare a scattergraph plot in Excel, begin by highlighting the data in cells B4 through CIO (as shown in Exhibit 5A-4). From the Charts group within the Insert tab, select the "Scatter" subgroup and then click on the choice that...
Required:
1-a. Prepare a scattergraph using the data given above. Plot
cost on the vertical axis and activity on the horizontal axis.
Instructions:
1. On the graph below, use the point tool (January) to
plot units shipped on the horizontal axis and the shipping expense
on the vertical axis.
2. Repeat the same process for the plotter tools
(February to July).
3. To enter exact coordinates, click on the point and
enter the values of x and y.
4. To...
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