Homework Answers
Solution:
Cost A and B is varying in proportion to units sold, therefore these should be considered as variable cost.
Cost C is constant irrespective of number of units sold.
Therefore none of the above cost are mixed costs.
Hence last option is correct.
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relevant in comparing decision alternatives o all of the above costs would be considered relevant in...
XYZ Company reported the following cost information: June Cost A Cost B Cost c Units sold...
XYZ Company reported the following cost information: June Cost A Cost B Cost c Units sold $16,380 $55,440 $37,380 42,000 units July $21,560 $89,080 $37,380 68,000 units Which of the above costs would be classified as a mixed cost? O Cost A O Cost B O Costc Both Cost A and Cost B are mixed costs all of the above costs are mixed costs none of the above costs are mixed costs
XYZ Company reported the following cost information: June July Cost A Cost B Costc Units sold...
XYZ Company reported the following cost information: June July Cost A Cost B Costc Units sold $16,380 $55,440 $37,380 42,000 units $21,560 $89,080 $37,380 68,ᎾᎾᎾ units which of the above costs would be classified as a mixed cost? Cost A Cost B O Costc O Both Cost A and Cost B are mixed costs all of the above costs are mixed costs none of the above costs are mixed costs
Started: Sep 23 at 8:11pm Quiz Instructions Question 1 3.5 pts Which of the following cost...
Started: Sep 23 at 8:11pm Quiz Instructions Question 1 3.5 pts Which of the following cost classifications would not be considered relevant in comparing decision alternatives? O opportunity cost O allocated cost sunk cost O avoidable cost more than one of the above costs would not be considered relevant in comparing decision alternatives O all of the above costs would be considered relevant in comparing decision alternatives Question 2 3.5 pts
Relevant costs in decision-making: are future costs that represent differences between decision alternatives. result from past...
Relevant costs in decision-making:
are future costs that represent differences between decision alternatives. result from past decislons. O should not influence the decislon. O none of the above.
Make-or-Buy Decision, Alternatives, Relevant Costs Each year, Basu Company produces 13,000 units of a component used...
Make-or-Buy Decision, Alternatives, Relevant Costs Each year, Basu Company produces 13,000 units of a component used in microwave ovens. An outside supplier has offered to supply the part for $1.31. The unit cost is: Direct materials $0.89 Direct labor 0.27 Variable overhead 0.07 Fixed overhead 2.10 Total unit cost $3.33 Required: 1. What are the alternatives for Basu Company? Make the part in house or buy the part externally 2. Assume that none of the fixed cost is avoidable. List...
1. List the relevant costs of the make and buy alternatives in the table below. Alternatives...
1. List the relevant costs of the make and buy
alternatives in the table below.
Alternatives
Differential Cost to Make
Make
Buy
Direct materials
Direct labor
Variable overhead
Purchase cost
Total relevant cost
2. If Zion decides to buy the component from Bryce, will
operating income increase or decrease, and by how much?
3. Assume that 75% of Zion Manufacturing's fixed overhead for
Component K2 would be eliminated if that component were no longer
produced. If Zion decides to purchase...
1. List the relevant costs of the make and buy alternatives in the table below. Alternatives...
1. List the relevant costs of the make and buy
alternatives in the table below.
Alternatives
Differential Cost to Make
Make
Buy
Direct materials
Direct labor
Variable overhead
Purchase cost
Total relevant cost
2. If Zion decides to buy the component from Bryce, will
operating income increase or decrease, and by how much?
3. Assume that 75% of Zion Manufacturing's fixed overhead for
Component K2 would be eliminated if that component were no longer
produced. If Zion decides to purchase...
1. List the relevant costs of the make and buy alternatives in the table below. Alternatives...
1. List the relevant costs of the make and buy
alternatives in the table below.
Alternatives
Differential Cost to Make
Make
Buy
Direct materials
Direct labor
Variable overhead
Purchase cost
Total relevant cost
2. If Zion decides to buy the component from Bryce, will
operating income increase or decrease, and by how much?
3. Assume that 75% of Zion Manufacturing's fixed overhead for
Component K2 would be eliminated if that component were no longer
produced. If Zion decides to purchase...
1. List the relevant costs of the make and buy alternatives in the table below. Alternatives...
1. List the relevant costs of the make and buy alternatives in the
table below.
Alternatives
Differential Cost to Make
Make
Buy
Direct materials
Direct labor
Variable overhead
Purchase cost
Total relevant cost
2. If Zion decides to buy the component from Bryce, will
operating income increase or decrease, and by how much?
3. Assume that 75% of Zion Manufacturing's fixed overhead for
Component K2 would be eliminated if that component were no longer
produced. If Zion decides to purchase...
Cornerstone Exercise 17.2 (Algorithmic) Keep-Or-Drop Decision, Alternatives, Relevant Costs Reshier Company makes three types of rug...
Cornerstone Exercise 17.2 (Algorithmic) Keep-Or-Drop Decision, Alternatives, Relevant Costs Reshier Company makes three types of rug shampooers. Model 1 is the basic model rented through hardware stores and supermarkets. Model 2 is a more advanced model with both dry-and wet-vacuuming capabilities. Model 3 is the heavy-duty riding shampooer sold to hotels and convention centers. A segmented income statement is shown below. Model 1 Model 2 Model 3 Total Sales $275,000 $550,000 $621,000 $1,446,000 Less variable costs of goods sold (98,000)...
XYZ Company reported the following cost information: June Cost A Cost B Cost c Units sold $16,380 $55,440 $37,380 42,000 units July $21,560 $89,080 $37,380 68,000 units Which of the above costs would be classified as a mixed cost? O Cost A O Cost B O Costc Both Cost A and Cost B are mixed costs all of the above costs are mixed costs none of the above costs are mixed costs
XYZ Company reported the following cost information: June July Cost A Cost B Costc Units sold $16,380 $55,440 $37,380 42,000 units $21,560 $89,080 $37,380 68,ᎾᎾᎾ units which of the above costs would be classified as a mixed cost? Cost A Cost B O Costc O Both Cost A and Cost B are mixed costs all of the above costs are mixed costs none of the above costs are mixed costs
Started: Sep 23 at 8:11pm Quiz Instructions Question 1 3.5 pts Which of the following cost classifications would not be considered relevant in comparing decision alternatives? O opportunity cost O allocated cost sunk cost O avoidable cost more than one of the above costs would not be considered relevant in comparing decision alternatives O all of the above costs would be considered relevant in comparing decision alternatives Question 2 3.5 pts
Relevant costs in decision-making:
are future costs that represent differences between decision alternatives. result from past decislons. O should not influence the decislon. O none of the above.
1. List the relevant costs of the make and buy
alternatives in the table below.
Alternatives
Differential Cost to Make
Make
Buy
Direct materials
Direct labor
Variable overhead
Purchase cost
Total relevant cost
2. If Zion decides to buy the component from Bryce, will
operating income increase or decrease, and by how much?
3. Assume that 75% of Zion Manufacturing's fixed overhead for
Component K2 would be eliminated if that component were no longer
produced. If Zion decides to purchase...
1. List the relevant costs of the make and buy
alternatives in the table below.
Alternatives
Differential Cost to Make
Make
Buy
Direct materials
Direct labor
Variable overhead
Purchase cost
Total relevant cost
2. If Zion decides to buy the component from Bryce, will
operating income increase or decrease, and by how much?
3. Assume that 75% of Zion Manufacturing's fixed overhead for
Component K2 would be eliminated if that component were no longer
produced. If Zion decides to purchase...
1. List the relevant costs of the make and buy
alternatives in the table below.
Alternatives
Differential Cost to Make
Make
Buy
Direct materials
Direct labor
Variable overhead
Purchase cost
Total relevant cost
2. If Zion decides to buy the component from Bryce, will
operating income increase or decrease, and by how much?
3. Assume that 75% of Zion Manufacturing's fixed overhead for
Component K2 would be eliminated if that component were no longer
produced. If Zion decides to purchase...
1. List the relevant costs of the make and buy alternatives in the
table below.
Alternatives
Differential Cost to Make
Make
Buy
Direct materials
Direct labor
Variable overhead
Purchase cost
Total relevant cost
2. If Zion decides to buy the component from Bryce, will
operating income increase or decrease, and by how much?
3. Assume that 75% of Zion Manufacturing's fixed overhead for
Component K2 would be eliminated if that component were no longer
produced. If Zion decides to purchase...
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