Question 1-2 (Chap 18 High low method) Sales salaries and commissions are $10,000 when 80,000 units...
Question 1-2 (Chap 18 High low method)
Sales salaries and commissions are $10,000 when 80,000 units are sold, and $14,000 when 120,000 units are sold. Using the high-low method:
Q1. What is the variable portion of sales salaries and commission?
Q2. What is the fixed portion of sales salaries and commission?
Homework Answers
1.
Variable cost per unit = (Highest activity cost - Lowest activity cost)/(Highest activity - Lowest activity)
= (14,000 - 10,000)/(120,000 - 80,000)
= 4,000/40,000
= $0.10 per unit
variable portion of sales salaries and commission = $0.10 per unit
2.
Fixed cost = Highest activity cost - (Highest activity x Variable cost per unit)
= 14,000 - (120,000 x 0.10)
= 14,000 - 12,000
= $2,000
fixed portion of sales salaries and commission = $2,000
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Question 1-2 (Chap 18 High low method)
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1. Analyze a mixed cost using the high-low
method.
2. Prepare an income statement for a merchandising
company using the contribution format.
Excel Assignment 2 Chapters 4 - 6) Saved Calori LI Paste BIU- " AA A Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells 2 Clipboard Font A1 v f Jay Corporation has decided to prepare contribution income statements for v A с E F G 8.33 points Jay Corporation has decided to prepare contribution Income...
In applying the high-low method, what is the total fixed cost? Month Miles (units) Total Cost (dollars) January 80,000 $ 96,000 February 50,000 80,000 March 70,000 94.000 April 90,000 130,000 O $36,000 $17,500 $14,000 $50,000
In applying the high-low method, what is the total fixed cost? Month Miles (units) Total Cost (dollars) January 80,000 $ 96,000 February 50,000 80,000 March 70,000 94.000 April 90,000 130,000 O $36,000 $17,500 $14,000 $50,000
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Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget $ 2,544,000 $300,000 528,000 312,000 100,000 1,240,000 1,304,000 Sales (12,000 units X $212 per unit) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging Advertising Administrative expenses Administrative salaries Depreciation office equip. Insurance Office rent Income from operations 96,000 180,000 100,000 376,000 150,000 120,000 90,000 100,000 460,000 468,000 $ (1)...
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