appear below Instructor wages Classroom supplies Utilities Fixed Cost per Month $ 1,220 $ 5,100 Cost per Course $ 2,930 Cost per Student $ 270 $ 80 Campus rent Insurance Administrative expenses $ 2,400 $ 3,600 $ 40 $ 3 For example, administrative expenses should be $3,600 per month plus $40 per course plus $3 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 62 students. The actual operating results for September appear below. Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Required: Actual $ 54,060 $ 11,000 $ 17,130 $ 1,950 $ 5,100 $ 2,540 $ 3,378 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September.

appear below Instructor wages Classroom supplies Utilities Fixed Cost per Month $ 1,220 $ 5,100 Cost per Course $ 2,930 Cost per Student $ 270 $ 80 Campus rent Insurance Administrative expenses $ 2,400 $ 3,600 $ 40 $ 3 For example, administrative expenses should be $3,600 per month plus $40 per course plus $3 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 62 students. The actual operating results for September appear below. Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Required: Actual $ 54,060 $ 11,000 $ 17,130 $ 1,950 $ 5,100 $ 2,540 $ 3,378 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September.

Name: None appear belowInstructor wagesClassroom suppliesUtilitiesFixed Cost
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Description: None appear belowInstructor wagesClassroom suppliesUtilitiesFixed Costper Month$ 1,220$ 5,100Cost perCourse$ 2,930Cost perStudent$ 270$ 80Campus rentInsuranceAdministrative expenses$ 2,400$ 3,600$ 40$ 3For example, administrative expenses should be $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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Recent IT costs incurred each month at the head office of Dawn Ltd are detailed below. Apply the high/low method to establish how the cost behave and then select the correct prediction of cost for a month in which 770 client projects will be completed by the company month Number of clients project IT cost (£) 1 730 £116150 2 800 £123000 3 625 £112500 4 790 £120980 a. £94,200 b. £121,200 c. £122,000 d. £119,780
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method, express the companys overtime wages as an equation where x represents number of invoices processed. Assume BC has monthly fixed costs of $3,800. Predict the overtime wages if 9,000 invoices are processed. Predict the overtime wages if 6,500 invoices are processed. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
Customers as a Cost Object Morrisom National Bank has requested an analysis of checking account profitability by customer type. Customers are categorized according to the size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Additional data concerning the usage of the activities by the various customers are also provided: Required: (Note: Round answers to two decimal places.) 1. Calculate a cost per account per year by dividing the total cost of processing and maintaining checking accounts by the total number of accounts. What is the average fee per month that the bank should charge to cover the costs incurred because of checking accounts? 2. Calculate a cost per account by customer category by using activity rates. 3. Currently, the bank offers free checking to all of its customers. The interest revenues average 90 per account; however, the interest revenues earned per account by category are 80, 100, and 165 for the low-, medium-, and high-balance accounts, respectively. Calculate the average profit per account (average revenue minus average cost from Requirement 1). Then calculate the profit per account by using the revenue per customer type and the unit cost per customer type calculated in Requirement 2. 4. CONCEPTUAL CONNECTION After the analysis in Requirement 3, a vice president recommended eliminating the free checking feature for low-balance customers. The bank president expressed reluctance to do so, arguing that the low-balance customers more than made up for the loss through cross-sales. He presented a survey that showed that 50% of the customers would switch banks if a checking fee were imposed. Explain how you could verify the presidents argument by using ABC.
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
The information provided below was taken from the records of Chotoo Projects for the financialyear ended 31 May 2020.Extract of statement of comprehensive income for the year ended 31 May 2020RRevenue 480 000Direct costs 240 000Rent income 150 000Advertising 4 800Salaries and wages 90 000Rates and taxes 1 200Other operating expenses 80 000Additional information1. Revenue is calculated as direct cost plus 25%.2. Revenue is divided equally each month. Revenue is expected to increase by 18% for thefinancial year ending 31 May 2021.POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT – ACADEMIC AND ASSESSMENT CALENDARREGENT BUSINESS SCHOOL (RBS) January 2021 173. Fifty percent (50%) of the revenue is for cash and the balance is on credit. Debtorsnormally pay their accounts as follows:• 40% in the month of the invoice, and these debtors are entitled toa 5% discount;• 55% one month after the invoice;The balance is usually written off as bad debts.4. Purchases for June and July are expected to be 30…
Island Enterprises has presented the following information for the past eight months operations: 11 Month April KAy Daits Total Cost $18,500 4,750 J,950 $16,400 2,150 $12,600 $14,700 June J,550 July Aagust Septamber 4,950 Octaber 1,250 $17,500 4,650 Movember 4,150 $21,000 $18,000 $17,200 a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. (Round variable cost to 2 decimal places.) Faed Cost Per Month Variable Cost Per Unit b. What would total costs be for a month with 3,750 units produced? (Do not round your intermediate calculations.) Total Coots
Compute for the total cost per month using costing labor cost by the given data Compute for the percentage weight of the monetary benefit, non monetary benefit, and deferred monetary benefit Compute for the percentage of cost relevant to the sales of total labor cost, given that there are 40 employees in the company and the revenue of the company is 2,500,000 monthly.
Using cost behavior patterns MFG Company experiences the following cost behavior patterns each week:Fixed costs: supervisor’s salary $1,000; factory rent $2,500Mixed costs: utilities $1,500 1 $5.25 per unitVariable costs per unit: manufacturing labor wages $20; supplies used in production $8.50; packaging cost $2.25; warranty cost $4Required:Compute total costs to be incurred for a week with 2,750 units of activity