Required information[The following information applies to the questions displayed below.]Felix & Company reports the following information.Period Units ProducedTotal Costs10$4,82024, 1203456789107201, 1201,5201,9202,3202,7203,1203,5203,9204,5205,1204,2204,4208,92016,320Total cost at the highest volumeVariable costs at highest volumeHighest volumeVariable cost per unitTotal variable costs at highest volumeTotal fixed costs5, 12014, 228(1) Use the high-low method to estimate the fixed and variable components of total costs.(2) Estimate total costs if 4,050 units are produced.High-Low method - Calculation of variable cost per unitHigh-Low method - Calculation of fixed costsTotal cost at the lowest volumeVariable costs at lowest volumeLowest volumeVariable cost per unitTotal variable costs at lowest volumeTotal fixed costs(2) Estimated cost if 4,050 units are produced:Estimated total cost0

The mixed costs of production comprise variable and fixed costs. The variable costs change with a…

Felix & Company reports the following information. Period Units Produced 1 0 2 720 3 1,120 1,520 1,920 2,320 2,720 4 5 6 7 8 9 10 3, 120 3,520 3,920 Total Costs $4,820 4, 120 4,520 5,120 4,220 4,420 8,920 16,320 5,120 14, 228 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 4,050 units are produced. High-Low method - Calculation of variable cost per unit

Felix & Company reports the following information. Period Units Produced 1 0 2 720 3 1,120 1,520 1,920 2,320 2,720 4 5 6 7 8 9 10 3, 120 3,520 3,920 Total Costs $4,820 4, 120 4,520 5,120 4,220 4,420 8,920 16,320 5,120 14, 228 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 4,050 units are produced. High-Low method - Calculation of variable cost per unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [The following information applies to the questions displayed below.] Felix & Company reports the following information. Units Produced Total Costs Period 1 2 0 400 $ 2,525 3,325 3 800 4,125 4 1,200 4,925 5 1,600 5,725 6 2,000 6,525 7 2,400 7,325 8 2,800 8,125 9 3,200 8,925 10 3,600 9,725 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 3,000 units are produced. High-Low method - Calculation of variable cost per unit Total cost at the high point Variable costs at the high point Volume at the high point Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point Volume at the low point Variable cost per unit Total variable costs at the low point Total fixed costs High-Low method - Calculation of fixed costs+ (2) Estimated cost if 3,000 units are produced: Estimated total cost
! Required information [The following information applies to the questions displayed below.] Felix & Company reports the following information. Period 1 Units Produced Total Costs 0 $ 2,820 123456789 200 3,660 400 4,500 600 5,340 800 6,180 1,000 7,020 1,200 7,860 1,400 8,700 1,600 9,540 10 1,800 10,380 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 2,820 units are produced.
Subject: Cost management & accounting MCQs: 1) Grover Company has the following data for the production and sale of 2,000 units. Sales price per unit $ 800 per unitFixed costs: Marketing and administrative $ 400,000 per periodManufacturing overhead $ 200,000 per periodVariable costs: Marketing and administrative $ 50 per unitManufacturing overhead $ 80 per unitDirect labor $ 100 per unitDirect materials $ 200 per unitWhat is the total manufacturing cost per unit? a) $380 b) $480 c) $730 d) $430 2) Vegas Company has the following unit costs: Variable manufacturing overhead $ 25 Direct materials 20 Direct labor 19 Fixed manufacturing overhead 12 Variable marketing and administrative 7 Vegas produced and sold 10,000 units. If the product sells for $100, what is the gross margin?…
Required information. Cost Classifications (Algo) [The following information applies to the questions displayed below] Kubin Company's relevant range of production is 26,000 to 35,500 units. When it produces and sells 30,750 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $8.50 $5.60 $ 3.10 1. Total amount of product cost 2. Total amount of period cost 3. Total amount of product cost 4 Total amount of period cost $6.60 $5.10 $.4.10 $2.00 $2.10 Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 30,750 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 30,750 units? 3. For…
es Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units? 2. What is the incremental cost incurred if the company increases production and sales from 20,000 to 20,001 units? 3. Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. If a new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been produced by the company and that would…
Required information [The following information applies to the questions displayed below] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $6.00 $ 3.50 1.50 $4.08 $ 3.98 $ 2.00 $1.00 $ $ 8.50 9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? Total fixed manufacturing cost
KPR manufactures deals in various products. Relevant details of the products are as under: AWAXAYAZ Estimated annual demand (units)5000100070008000 Sales price per unit (Rs.)150180154175 Material consumption: Q (Rs)2729.524.529.75 Labor hours (Rs)5056.2543.7562.5 Variable overheads (based on labor cost) 70%80%10%90% Fixed overheads per unit (Rs.)10201416 Machine hours required: Processing machine hours 56810 The capacity utilization is as under:Hours Processing machine 150,000 RequiredCompute the number of units of each product that the company should produce in order tomaximize the profit. (B) KPR manufactures is considering a special order for 20 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is Rs 184 and its unit product cost is Rs140.00 as shown below: Direct materials . . . . . . . . . . . . . . . . . . . . Rs 81.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . 42.00Manufacturing…
Required information [The following information applies to the questions displayed below} Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct lebor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed adeinistrative expense Sales commissions Variable adninistrative expense Average Cost per Unit 26.60 $ 4.10 $41.50 2 4.00 $ 3.60 $42.00 21.00 $0.50 13. If the selling price is $22.60 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Contribution margin per unit Required information 15 [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit $…
Shown below are units produced and total manufacturing costs for the pastfour months at Minda Manufacturing Corporation: Units Produced Total CostJul 120 P446,000Aug 150 P508,000Sep 180 P638,000Oct 170 P668,000What is Minda's cost formula for total manufacturing costunder the high-lowmethod?
Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 7.00 $ 4.50 $ 1.40 $ 4.00 $ 4.00 $ 2.10 $ 1.10 $ 0.55 13. If the selling price is $23.00 per unit, what is the contributian margin per unit? (Do not round intermediate calculatic your answer to 2 decimal places.) 14. If 12,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.) Total direct manufacturing cost Total indirect manufacturing cost 15. What incremental manufacturing cost will Martinez…
Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense
Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 20,000 units? b. What is the total indirect manufacturing cost incurred to make 20,000 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 20,000 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be…