Angie March owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer months and year-end holidays and light demand at other times. Angie has gathered the following cost information from the past year: Month   Labor Hours   Overhead Costs   January     2,800       $51,840     February     2,100       49,120     March     2,200       50,120     April     3,300       53,640     May     3,600       56,520     June     4,800       60,040     July     7,100       68,120     August     6,800       65,240     September     5,700       60,680     October     3,800       57,440     November     2,400       52,000     December     5,800       61,640           Total     50,400       $686,400     (a)   Correct answer icon Your answer is correct. Identify the high and low points.     Activity Level   $ High point   enter the activity level for high point   $enter the high point in dollars  Low point   enter the activity level for low point   $enter the low point in dollars  Using the high-low method, compute the overhead cost per labor hour and the fixed overhead cost per month. (Round variable cost to 2 decimal places, e.g. 15.25 and fixed cost to 0 decimal places, e.g. 5,275.) Variable cost = $enter the variable cost per labor hour in dollars rounded to 2 decimal places  per labor hour Fixed cost = $enter the fixed cost amount in dollars rounded to 0 decimal places      eTextbook and Media         Attempts: 1 of 3 used       (b)   Incorrect answer icon Your answer is incorrect. Angie has booked 4,200 labor hours for the coming month. How much overhead should she expect to incur? Total cost = $enter the total cost amount in dollars rounded to 0 decimal places    eTextbook and Media   Save for Later     Attempts: 1 of 3 used Submit Answer     (c)     If Angie books one more catering job for the month, requiring 350 labor hours, how much additional overhead should she expect to incur? Additional overhead = $enter the additional overhead amount in dollars rounded to 0 decimal places

Cathy, the manager of Cathy’s Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 5 people to serve and clean up. Cathy offers two types of parties—an afternoon picnic and an evening formal dinner. The breakdown of the costs follows.   Activities (and cost drivers) Afternoon Picnic Formal Dinner Advertising (parties) $ 125 per party $ 125 per party Planning (parties) $ 50 per party $ 144 per party Renting equipment (parties, guests) $ 55 per party plus $13 per guest $ 77 per party plus $24 per guest Obtaining insurance (parties) $ 230 per party $ 375 per party Serving (parties, servers) $ 40 per server per party $ 66 per server per party Preparing food (guests) $ 22 per guest $ 35 per guest     Per party costs do not vary with the number of guests.   Required: a. Compute the cost of a 20-guest afternoon picnic. b. Compute the cost of a 20-guest evening formal dinner. c. How much…

Determine the company's total cost of goods completed and COGS in December. Total cost of goods completed and COGS 69 eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer (d1) How much gross margin did the company earn in December? (Round percentage answer to 2 decimal places, e.g. 52.75%.) Gross margin Gross margin percentage $ % If Betty had a goal of earning a 35% gross margin, did she reach her goal? .she eTextbook and Media Save for Later ✓ reach her goal, because % is than her goal of 35%. Attempts: 0 of 2 used Submit Answer

Sampson Company operates a manufacturing facility where several products are made. Deach product is considered a business segment, and the product managers have the opportunity to receive a bonus based on the profit of the segment. Franco Hopper is the manager for the scissors product line. Production and sales for the scissors product line loene for the past three years are shown below:                Year 1: Year 2: Year 3: Units produced 100,000 125,000 160,000 Units sold 100,000 100,000 100,000 Sales price per unit 12.00 12.00 12.00 Variable manufacturing cost per unit 5.00 5.00 5.00 Total fixed manufacturing cost 200,000 200,000 200,000   Hopper’s bonus is .5% of the gross profit of the scissors product line, based on absorption costing. Upper management is discussing changing the bonus system so that bonuses are based on operating income using variable costing. Hopper is opposed to this change and has been trying to convince the other product managers to join him in voicing their…

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Cathy, the manager of Cathy’s Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 5 people to serve and clean up. Cathy offers two types of parties—an afternoon picnic and an evening formal dinner. The breakdown of the costs follows.   Activities (and cost drivers) Afternoon Picnic Formal Dinner Advertising (parties) $ 81 per party $ 81 per party Planning (parties) $ 54 per party $ 124 per party Renting equipment (parties, guests) $ 49 per party plus $12 per guest $ 71 per party plus $23 per guest Obtaining insurance (parties) $ 220 per party $ 355 per party Serving (parties, servers) $ 58 per server per party $ 70 per server per party Preparing food (guests) $ 18 per guest $ 31 per guest     Per party costs do not vary with the number of guests.   Required: a. Compute the cost of a 20-guest afternoon picnic. b. Compute the cost of a 20-guest evening formal dinner. c. How much…

Hello Company makes three different products. Due to the constraints of their manufacturing equipment and warehouse facility, the company is only able to produce, store, and sell a total of 50,000 units each month. The production of Products A and B varies each month; however, Product C is a special order for one customer who purchases the same number of units every month. Pete Davila, the CEO, has |provided the following data from last month for each product. Income Statement Product A Product B Product C Мax Cарacity 5,000 8.00 $ 2.00 $ Units 43,000 10.00 $ 3.00 $ 20,000 $ 2,000 50,000 Price per unit Variable expense per unit $ $ $ 50.00 15.00 $ 20.00 Total Fixed Costs 40,000 $ 10,000 Product Sales $ 430,000 $ 40,000 $ 100,000 $ 570,000 (169,000) 401,000 (70,000) 331,000 Variable Costs (129,000) (10,000) 30,000 $ (30,000) 70,000 $ Contribution Margin $ 301,000 $ Fixed Costs (20,000) 281,000 (40,000) (10,000) (10,000) 60,000 $ Operating income (loss) Required Using the Data Table…

Solve the following problem: The service department at Major Motors sold $48,000 in service last month. They had direct costs of $16,500 to pay their technicians. They were not given credit for any parts sales or expenses because that was the responsibility of their separate parts department. They were, however, allocated $29,250 in fixed expenses. What is the gross profit Major Motors earned last month?

The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 3,180 $ 6,510 February 2,920 $ 6,261 March 3,780 $ 7,392 April $ 5,569 May $ 1,820 June 2,050 $ 5,261 July 4,050 $ 7,829 August 4,070 $ 7,896 September 1,780 $ 4,984 October 570 $ 1,596 $4,424 $5,908 Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. 2,160 650 November 1,580 December 2,680

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