Homework Answers
Semi- Variable cost can be segregated by comparing the output and costs at two different levels of activity.
Difference between Total Costs for Sep and Oct = $ (120-90) = $ 30
Difference between Activity Volumes for the two months = (21-11) = 10 units
Therefore, variable cost should be = 30/10 = 3 per unit
So, for Sep, (21*3) - Fixed Cost = $ 120
or, Fixed Cost = $ 120 - $ 63 = $ 57
The fixed cost should be $ 57 for all levels of activity.
But, for Dec, we find (26*3 + 57) does not add up to the total cost of $ 180
This is because, the contribution margin information for relevant range is missing.
Hence, the correct answer is 'A - not enough information - need to know the contribution margin statement in the relevant range'
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1. Estimate unit variable cost Month Total costs Activity volume in units September $120 21 October...
please show work/give explaination 21 180-120 26-11 * Estimate unit variable cost Month Total costs Activity...
please show work/give explaination
21 180-120 26-11 * Estimate unit variable cost Month Total costs Activity volume in units September $120 October $90 11 0 November - $150 31 December $180 26 H A. not enough information need to know the contribution margin statement in the relevant range B. $3.00/unit C. $4.00/unit D. $4.50/unit E. $6.00/unit Z At current production volume of 1,000 units, variable costs are $6 per unit and fixed costs are $4 per unit, for a total...
need help thank you. Question 17 2.5 pts Estimate unit variable cost Total costs Activity volume...
need help thank you.
Question 17 2.5 pts Estimate unit variable cost Total costs Activity volume in units month 1 $155 29 month 2 $95 month 3 $125 19 month 4 $185 24 O $4.00 per hour $6.00 per hour O $3.00 per hour not enough information -- need to know the contribution margin statement in the relevant range $4.50 per hour
Estimate unit variable costs. Production volume was 10 units. fire insurance $100 depreciation $240 rent $200...
Estimate unit variable costs. Production volume was 10 units. fire insurance $100 depreciation $240 rent $200 assembly workers' wages $500 production supervisor's salary $120 direct materials $300 DOVE A. $30 per unit B. $50 per unit C. $80 per unit D. $104 per unit E. not enough information—it depends on whether the relevant range is fixed or variable
please help. thank you! Question 20 2.5 pts Estimate unit variable costs. Production volume was 10...
please help. thank you!
Question 20 2.5 pts Estimate unit variable costs. Production volume was 10 units. fire insurance $100 depreciation $240 rent $200 assembly workers' wages $500 production supervisor's salary $120 direct materials $300 O $80 per unit O $104 per unit O $50 per unit O not enough information -- it depends on whether the relevant range is fixed or variable $30 per unit
29 At the Kicher Company's current activity level of 8,000 units per month, the costs of...
29 At the Kicher Company's current activity level of 8,000 units per month, the costs of producing and selling one unit of the company's only product are as follows: 01:06 14 Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses 35.00 $6.00 $1.00 $9.00 $3.00 $4.00 Print The normal selling price is $26 per unit. An order has been received from a potential customer overseas for 4,000 units at...
1. Corporation reports that at an activity level of 9,300 units, its total variable cost is...
1. Corporation reports that at an activity level of 9,300 units, its total variable cost is $669,600 and its total fixed cost is $96,650. What would be the total cost, both fixed and variable, at an activity level of 9,500 units? Assume that this level of activity is within the relevant range. $766,250 $774,489 $780,650 $783,750 2.The following costs were incurred in April: Direct materials $48,000 Direct labor $32,000 Manufacturing overhead $26,000 Selling expenses $23,000 Administrative expenses $36,000 Prime costs...
At the Kicher Company’s current activity level of 8,000 units per month, the costs of producing...
At the Kicher Company’s current activity level of 8,000 units
per month, the costs of producing and selling one unit of the
company’s only product are as follows:
Direct materials
$5.00
Direct labour
$6.00
Variable manufacturing overhead
$1.00
Fixed manufacturing overhead
$9.00
Variable selling and administrative expenses
$3.00
Fixed selling and administrative expenses
$4.00
The normal selling price is $26 per unit. An order has been
received from a potential customer overseas for 4,000 units at a
price of $24.00...
The following information is available for a company's maintenance cost over the last seven months. Month...
The following information is available for a company's maintenance cost over the last seven months. Month June July August September October November December Units Produced 90 180 120 150 210 240 Maintenance Cost $5,450 6,900 5, 100 6,000 6,900 8, 100 3,600 60 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Change in cost Change in volume High-Low method - Calculation of variable cost per maintenance hour Cost at high point minus cost...
Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...
Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Company's contribution format income statement for the most recent month is shown below: Sales (31,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $186,000 93,000 93,000 44,000 $ 49,000 Per Unit $6.00 3.00 $3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised...
tep24730991 Question 1: CVP relation Sales volume in units 100 Revenue $5,000 Variable costs $2,000 Contribution...
tep24730991 Question 1: CVP relation Sales volume in units 100 Revenue $5,000 Variable costs $2,000 Contribution margin $3,000 Fixed costs $1,800 Profit $1,200 a) Compute the following items: price unit VC- unit CM= b) Write down the CVP relation. Profit #volume - (e.g., if Profit=4*volume-1000, enter 4 in the first box and 1000 in the second box). c) Predict profit at sales volume of 120 units: d) Your boss gave you a profit target of $2,100. How many units do...
please show work/give explaination
21 180-120 26-11 * Estimate unit variable cost Month Total costs Activity volume in units September $120 October $90 11 0 November - $150 31 December $180 26 H A. not enough information need to know the contribution margin statement in the relevant range B. $3.00/unit C. $4.00/unit D. $4.50/unit E. $6.00/unit Z At current production volume of 1,000 units, variable costs are $6 per unit and fixed costs are $4 per unit, for a total...
need help thank you.
Question 17 2.5 pts Estimate unit variable cost Total costs Activity volume in units month 1 $155 29 month 2 $95 month 3 $125 19 month 4 $185 24 O $4.00 per hour $6.00 per hour O $3.00 per hour not enough information -- need to know the contribution margin statement in the relevant range $4.50 per hour
Estimate unit variable costs. Production volume was 10 units. fire insurance $100 depreciation $240 rent $200 assembly workers' wages $500 production supervisor's salary $120 direct materials $300 DOVE A. $30 per unit B. $50 per unit C. $80 per unit D. $104 per unit E. not enough information—it depends on whether the relevant range is fixed or variable
please help. thank you!
Question 20 2.5 pts Estimate unit variable costs. Production volume was 10 units. fire insurance $100 depreciation $240 rent $200 assembly workers' wages $500 production supervisor's salary $120 direct materials $300 O $80 per unit O $104 per unit O $50 per unit O not enough information -- it depends on whether the relevant range is fixed or variable $30 per unit
29 At the Kicher Company's current activity level of 8,000 units per month, the costs of producing and selling one unit of the company's only product are as follows: 01:06 14 Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses 35.00 $6.00 $1.00 $9.00 $3.00 $4.00 Print The normal selling price is $26 per unit. An order has been received from a potential customer overseas for 4,000 units at...
At the Kicher Company’s current activity level of 8,000 units
per month, the costs of producing and selling one unit of the
company’s only product are as follows:
Direct materials
$5.00
Direct labour
$6.00
Variable manufacturing overhead
$1.00
Fixed manufacturing overhead
$9.00
Variable selling and administrative expenses
$3.00
Fixed selling and administrative expenses
$4.00
The normal selling price is $26 per unit. An order has been
received from a potential customer overseas for 4,000 units at a
price of $24.00...
The following information is available for a company's maintenance cost over the last seven months. Month June July August September October November December Units Produced 90 180 120 150 210 240 Maintenance Cost $5,450 6,900 5, 100 6,000 6,900 8, 100 3,600 60 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Change in cost Change in volume High-Low method - Calculation of variable cost per maintenance hour Cost at high point minus cost...
Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Company's contribution format income statement for the most recent month is shown below: Sales (31,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $186,000 93,000 93,000 44,000 $ 49,000 Per Unit $6.00 3.00 $3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised...
tep24730991 Question 1: CVP relation Sales volume in units 100 Revenue $5,000 Variable costs $2,000 Contribution margin $3,000 Fixed costs $1,800 Profit $1,200 a) Compute the following items: price unit VC- unit CM= b) Write down the CVP relation. Profit #volume - (e.g., if Profit=4*volume-1000, enter 4 in the first box and 1000 in the second box). c) Predict profit at sales volume of 120 units: d) Your boss gave you a profit target of $2,100. How many units do...
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