Question

Practice Question 11 Delivery costs at Hernandez, Inc. appear below for specific months of operations: Month Amount Units Pro
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer : Mixed

Explanation:

Here the costs changes with activity level, So they are not fixed costs.

Per Unit Costs:

March : $20000/16000 = $1.25 per unit

April : $18000/12000 = $1.5 per unit

Cost per unit are different at different activity levels, So they are not variable costs either.

ie. The cost contains fixed and variable elements. So these are mixed costs.

Comment if you have any doubts. Please Upvote the answer if you find this helpful. Thankyou.

Add a comment
Know the answer?
Add Answer to:
Practice Question 11 Delivery costs at Hernandez, Inc. appear below for specific months of operations: Month...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Practice Question 07 X Variable costs have the same cost per unit no matter how many...

    Practice Question 07 X Variable costs have the same cost per unit no matter how many units. Delivery costs at Walco, Inc. appear below for specific months of operations: Month Amount Units Produced June $9,680 11,000 July $8,100 10,800 Which type of costs are delivery costs at Walco? Variable. Fixed. Mixed. Unable to determine the answer without more information.

  • 11. Arcadia Company incurred the following costs and machine hours during the first three months of...

    11. Arcadia Company incurred the following costs and machine hours during the first three months of the current year. Assume that the driver for all costs is machine hours. Type of cost Electricity Depreciation Factory supplies Property taxes January $20,000 15,000 9,600 12,000 February $15,000 15,000 5,600 12,000 March $18,000 15,000 7,600 12,000 1,200 700 950 Machine hours Required: A. Using the high-low method, construct a cost formula for electricity cost. B. If Arcadia had total costs in April of...

  • Silver Products has presented the following information for the past eight months operations: Units Month April...

    Silver Products has presented the following information for the past eight months operations: Units Month April May June July August September October November 8,950 7,350 4,750 6,550 7,950 9,350 8,750 7,750 Total Cost $ 29, 300 $ 27,700 $ 20,200 $ 25,100 $ 27,900 $ 36,760 $ 28,400 $ 27,600 a. Using the high low method, calculate the fixed cost per month and variable cost per unit. (Round your variable cost to 2 decimal places.) Fixed Cost Per Month Per...

  • Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based on...

    Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based on actual of 675 units) $112,340 Master Budget (based on budgeted 750 units) $120.000 Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing Administrative Total variable costs Contribution margin Fixed costs Manufacturing Marketing Administrative Total fixed costs Operating profits 14,232 16,060 10,980 6,512 6.000 $ 53,784 $S1.556 15,000 18,000 12,750 7. 200 6,000 $ 58,950 $ 61,050 5,360 12,382 11.961 530,203 $ 28,353...

  • Algonquin Adhesive Inc. is 40,000 direct labor hours and 20,000 units per month. A finished unit...

    Algonquin Adhesive Inc. is 40,000 direct labor hours and 20,000 units per month. A finished unit requires 6lb of materials at an estimated cost of $2 per pound. The estimated cost of labor is $10.00 per hour. The plant estimates that overhead (all variable) for a month will be $40,000. During the month of March, the plant totaled 34,800 direct labor at an average rate of $9.50 an hour. The plant produce 18,000 units, using 105,000 lb of materials ar...

  • Question 1 (1 point) Thomas Train has collected the following information over the last six months. Month Units Tot...

    Question 1 (1 point) Thomas Train has collected the following information over the last six months. Month Units Total costs produced March 10,000 $25,600 April 12,000 26,200 May 19.400 29.600 June 13,000 26,450 July 12,000 26,000 August 15,000 26,500 Using the high-low method, what is the variable cost per unit? Round to two decimal places, Your Answer:

  • Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based on...

    Odessa, Inc., reports the following information concerning operations for the most recent month: Actual (based on actual of 450 units) Master Budget (based on budgeted 500 units) Sales revenue $ 82,310 $ 90,000 Less Manufacturing costs Direct labor 11,250 12,000 Materials 9,010 11,000 Variable overhead 6,190 8,000 Marketing 4,114 4,800 Administrative 4,000 4,000 Total variable costs $ 34,564 $ 39,800 Contribution margin $ 47,746 $ 50,200 Fixed costs Manufacturing 3,855 4,000 Marketing 8,382 8,000 Administrative 7,964 8,000 Total fixed costs...

  • Seifer Inc.'s inspection costs are listed below: Units Produced Inspection Costs April 119 $ 8,600 May...

    Seifer Inc.'s inspection costs are listed below: Units Produced Inspection Costs April 119 $ 8,600 May 117 $ 8,500 June 113 $ 8,400 July 125 $ 8,700 August 152 $ 9,300 September 100 $ 8,200 October 120 $ 8,600 November 200 $ 10,400 Management believes that inspection cost is a mixed cost that depends on the number of units produced. Using the high-low method, the estimates of the variable and fixed components of inspection cost would be closest to: $22...

  • Odessa, Inc., reports the following information concerning operations for the most recent month: ...

    Odessa, Inc., reports the following information concerning operations for the most recent month: Master Bud based on budgeted 500 units) $85,000 Actual (based on actual I of 450 units) $77,360 Sales revenue Less Manufacturing costs Direct labor Materials Variable overhead Marketing Administrative 11,242 9,020 6,210 4,076 4,000 $34,548 $42,812 12,000 11,000 8,000 4,750 4,000 $39,750 $45,260 Total variable costs Contribution margin Fixed costs Manufacturing Marketing Administrative 3,855 8,388 7,963 $20,206 $22,606 4,000 8,000 8,000 $20,000 $25,250 Total fixed costs Operating...

  • Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating...

    Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: 1 Sales (28,800 × $80) $2,304,000.00 2 Manufacturing costs (28,800 units): 3 Direct materials 1,267,200.00 4 Direct labor 316,800.00 5 Variable factory overhead 172,800.00 6 Fixed factory overhead 221,760.00 7 Fixed selling and administrative expenses 28,800.00 8 Variable selling and administrative expenses 35,800.00 The company is evaluating a proposal to manufacture 36,000 units instead of 28,800 units, thus creating an ending inventory of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT