Homework Answers
Part 1
|
Cost |
Cost function |
Explanation |
|
Maintenance |
Mixed |
The cost neither remains constant in total nor remains constant per unit |
|
Health insurance |
Fixed |
Although the cost driver varies from month to month, the total cost remains constant |
|
Shipping costs |
Variable |
The cost per unit remains constant each month |
Part 2
|
Maintenance |
Y=a+bX |
|
Health insurance |
Y=a |
|
Shipping costs |
Y= bX |
|
Cost function |
|
|
Maintenance |
Y = $4180 + $2.60 per machine hour |
|
Health insurance |
Y = $8590 + 0 per employee |
|
Shipping costs |
Y = $0 + $3.40 per unit shipped |
Shipping cost per unit = 24446/7190 = $3.40
Maintenance cost:
Variable cost = (5636-4505)/(560-125) = 2.60
Fixed cost = 5636-(2.60*560) = $4180
Part 3
Monthly operating cost = $12770 + $2.60 per machine hour + $3.40 per unit shipped
Part 4
Monthly operating cost = $12770+ ($2.60*470)+ ($3.40*9100) = $44932
Add Answer to:
vouwvallHU Valley RUSLPRODUITS 4. Smith Corporation wants to find an equation to estimate some of their...
Shannon Corporation wants to find an equation to estimate some of their monthly operating costs for...
Shannon Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2018. The following cost and other data were gathered for 2017: Maintenance Machine Health Number of Shipping Units Month Costs Hours Insurance Employees Costs Shipped January $4,570 159 $8,620 64 $21,180 7,060 February $4,565 90 $8,620 71 $24,540 8,180 March $4,655 237 $8,620 93 $23,760 7,920 April $4,800 313 $8,620 107 $19,440 6,480 May $5,160 456 $8,620 88 $17,790 5,930...
% E10-25 (similar to) n Hel Data Table Sherman Corporation wants to find an equation to...
% E10-25 (similar to) n Hel Data Table Sherman Corporation wants to find an equation to estimate some of their monthly operating costs for the d E (Click the icon to view the cost and other data) Shipping Maintenance Machine Health Number of Units Read the requirements. Costs Month Hours Insurance Employees Costs Shipped Requirement 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. January 4,530 167 $ 8,640 59 22,688 7,090 February 100 2$ 80 26,208 8,190...
Odessa, Inc., manufactures one model of computer desk. The following data are available regarding units shipped...
Odessa, Inc., manufactures one model of computer desk. The following data are available regarding units shipped and total shipping costs: Number Total of Units Shipping Cost Month Shipped 3500 2.500 February 75 March 45 June July 80 4.000 50 3,450 Required: 1. Prepare a scattergraph of Odessa's shipping cost and draw the line you believe best fits the data. Instructions: 1. Use the point tool (7 points) to plot each Units Shipped / Total cost combination. 2. To enter exact...
Need some help with 2 and 4
Crosshill Company’s total overhead costs at various levels of activity are presented below: MonthMachine-HoursTotal Overhead CostApril73,000$141,000May63,000$159,000June83,000$333,000July93,000$211,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 63,000-machine-hour level of activity in May is as follows: Utilities (variable) $33,000Supervisory salaries (fixed)21,000Maintenance (mixed)105,000Total overhead cost $159,000 The company wants to break down the maintenance cost into its variable and fixed cost elements. Required:1. Estimate how much of the $211,000 of overhead cost in July was maintenance cost. (Hint: To do this,...
2. 3. LULU with the fleet of trucks. Express the variable and fixed costs in the...
2. 3. LULU with the fleet of trucks. Express the variable and fixed costs in the form Y = a +bX. If a truck were driven 80,000 kilometers during a year, what total oper expect to be incurred? a year, what total operating cost would you EXERCISE 5A-4 High-Low Method; Scattergraph Analysis L05-10 Archer Company is a wholesaler of custom-built air-conditioning unit It gathered the following monthly data relating to units shipped and total shipping m-built air-conditioning units for commercial...
Question 3 4 pts An increase in the level of activity will have which of the...
Question 3 4 pts An increase in the level of activity will have which of the following effects on unit costs for variable and fixed costs: Unit Variable Cost a. Increases b. Remains constant c. Decreases d. Remains constant Unit Fixed Cost Decreases Remains constant Remains constant Decreases oc o o Question 8 4 pts Which of the following costs are variable? Cost - sio 10,000 Units $100,000 40,000 90,000 50,000 30,000 Units $300,000 240,000 90.000 150,000 1 and 4...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Unit sales price Unit variable cost Brighter Cleaner 960 S675 $1.600 720 640 The number of machine-hours to produce one unit of Brighter is 1 while the number of machine-hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $260.000 Required: 1.Using a spreadsheet, determine the breakeven point...
Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses...
Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Material handling Material insertion Cost 225,000 2,475,000 Cost Driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped Automated machinery 840,000 170,000 Finishing Packaging Total 170,000 $ 3,880,000 The following information pertains to the three product lines...
Question 30 4 pts MacCloud Industries has two divisions-Standard and Premium. Each division has hundreds of...
Question 30 4 pts MacCloud Industries has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available: Standard Division Premium Division Total Sales $400,000 $600,000 $1,000,000 Variable costs 280,000 360,000 Contribution margin $120,000 $240,000 Total fixed costs $300,000 What is the weighted average contribution margin ratio? 50% 35% OOO 36% O 34% Question 32 4 pts Curtis Corporation's contribution margin is $25 per unit for Product A and...
Utica Manufacturing (UM) was recently acquired by MegaMachines, Inc. (MM), and organized as a separate division...
Utica Manufacturing (UM) was recently acquired by MegaMachines, Inc. (MM), and organized as a separate division within the company. Most manufacturing plants at MM use an ABC system, but UM has always used a traditional product costing system. Bob Miller, the plant controller at UM, has decided to experiment with ABC and has asked you to help develop a simple ABC system that would help him decide if it was useful. The controller's staff has identified costs for the first...
% E10-25 (similar to) n Hel Data Table Sherman Corporation wants to find an equation to estimate some of their monthly operating costs for the d E (Click the icon to view the cost and other data) Shipping Maintenance Machine Health Number of Units Read the requirements. Costs Month Hours Insurance Employees Costs Shipped Requirement 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. January 4,530 167 $ 8,640 59 22,688 7,090 February 100 2$ 80 26,208 8,190...
Odessa, Inc., manufactures one model of computer desk. The following data are available regarding units shipped and total shipping costs: Number Total of Units Shipping Cost Month Shipped 3500 2.500 February 75 March 45 June July 80 4.000 50 3,450 Required: 1. Prepare a scattergraph of Odessa's shipping cost and draw the line you believe best fits the data. Instructions: 1. Use the point tool (7 points) to plot each Units Shipped / Total cost combination. 2. To enter exact...
2. 3. LULU with the fleet of trucks. Express the variable and fixed costs in the form Y = a +bX. If a truck were driven 80,000 kilometers during a year, what total oper expect to be incurred? a year, what total operating cost would you EXERCISE 5A-4 High-Low Method; Scattergraph Analysis L05-10 Archer Company is a wholesaler of custom-built air-conditioning unit It gathered the following monthly data relating to units shipped and total shipping m-built air-conditioning units for commercial...
Question 3 4 pts An increase in the level of activity will have which of the following effects on unit costs for variable and fixed costs: Unit Variable Cost a. Increases b. Remains constant c. Decreases d. Remains constant Unit Fixed Cost Decreases Remains constant Remains constant Decreases oc o o Question 8 4 pts Which of the following costs are variable? Cost - sio 10,000 Units $100,000 40,000 90,000 50,000 30,000 Units $300,000 240,000 90.000 150,000 1 and 4...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Unit sales price Unit variable cost Brighter Cleaner 960 S675 $1.600 720 640 The number of machine-hours to produce one unit of Brighter is 1 while the number of machine-hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $260.000 Required: 1.Using a spreadsheet, determine the breakeven point...
Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Material handling Material insertion Cost 225,000 2,475,000 Cost Driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped Automated machinery 840,000 170,000 Finishing Packaging Total 170,000 $ 3,880,000 The following information pertains to the three product lines...
Question 30 4 pts MacCloud Industries has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available: Standard Division Premium Division Total Sales $400,000 $600,000 $1,000,000 Variable costs 280,000 360,000 Contribution margin $120,000 $240,000 Total fixed costs $300,000 What is the weighted average contribution margin ratio? 50% 35% OOO 36% O 34% Question 32 4 pts Curtis Corporation's contribution margin is $25 per unit for Product A and...
Utica Manufacturing (UM) was recently acquired by MegaMachines, Inc. (MM), and organized as a separate division within the company. Most manufacturing plants at MM use an ABC system, but UM has always used a traditional product costing system. Bob Miller, the plant controller at UM, has decided to experiment with ABC and has asked you to help develop a simple ABC system that would help him decide if it was useful. The controller's staff has identified costs for the first...
Most questions answered within 3 hours.
-
When using a relational database what makes data
formatting so important and critical to the functions...
asked 6 minutes ago -
The following temperatures show the (fictional) daily low
measured at O'Hare airport every January 1st from...
asked 26 minutes ago -
Your friend is interested in the characteristics of fast tree
planters. He searched through the records...
asked 33 minutes ago -
. 0.67 g of Ag is deposited electrolytically from
AgNO3 after a certain period of time...
asked 34 minutes ago -
assuming that the boric acid, h3po3 present at the end of the
borax tritation has a...
asked 33 minutes ago -
When a carbonate solution is acidified, carbon dioxide is
produced.
2H+(aq) + CO32-(aq) → H2O(l) +...
asked 1 hour ago -
A reaction has the following rate law: Rate =
kr[A][B]2. In experiment 1, the
concentrations of...
asked 1 hour ago -
king owns a large number of public pay phones. as rhe use of
payphones decline deamatically,...
asked 1 hour ago -
3.7 - A book is sitting on a table. The mass of the book
is 1...
asked 1 hour ago -
Which term describes the process by which a single strand of DNA
serves as a template...
asked 1 hour ago -
LAB FOOD DRING
ANSWER THE QUESTIONS:
Q1. What value is the moisture content versus time and...
asked 1 hour ago -
You are told that an object has zero acceleration. Two forces on
the object are: F_1...
asked 1 hour ago