Schriever Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgetingpurposes.RevenueEmployee salaries and wagesServicing materialsOther expensesMultiple ChoiceThe planning budget for May was based on 36 wells serviced, but a total of 31 wells were actually serviced in May.The activity variance for total expenses for May would have been closest to:ооо$10,500 F$8,500 F$10,500 UFixed element per Variable Element permonthWell Serviced$ 4,500$ 1,100$ 600$8,500 U$ 57,200$ 31,000

The main purpose of Standard costing is to compare your actual performance with these standards and…

chriever Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for bu urposes. Fixed element per Variable Element per month Well Serviced $ 57,200 $ 4,500 $1,100 $ 600 $ 31,000 he planning budget for May was based on 36 wells serviced, but a total of 31 wells were actually serviced in May. he activity variance for total expenses for May would have been closest to: Revenue Employee salaries and wages Servicing materials Other expenses Multiple Choice O O O O $10,500 F $8,500 F $10,500 U $8,500 U

chriever Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for bu urposes. Fixed element per Variable Element per month Well Serviced $ 57,200 $ 4,500 $1,100 $ 600 $ 31,000 he planning budget for May was based on 36 wells serviced, but a total of 31 wells were actually serviced in May. he activity variance for total expenses for May would have been closest to: Revenue Employee salaries and wages Servicing materials Other expenses Multiple Choice O O O O $10,500 F $8,500 F $10,500 U $8,500 U

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...

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Prowse Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Revenue Employee salaries and wages Servicing materials Other expenses A total of 42 wells were actually serviced during October. Multiple Choice O The total expenses in the flexible budget for October would have been closest to: O O O $147,600 $130,029 Fixed Element Variable Element per Well per Month Serviced $149,200 $141,200 $43,800 $38,200 $4,000 $1,000 $ 600
Lochner Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for June. Fixed Element per Month Variable Element per Well Serviced Actual Total for June Revenue $ 5,600 $ 148,000 Employee salaries and wages $ 40,600 $ 1,200 $ 73,700 Servicing materials $ 500 $ 13,600 Other expenses $ 42,800 $ 43,300 When the company prepared its planning budget at the beginning of June, it assumed that 24 wells would have been serviced. However, 26 wells were actually serviced during June. The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for June would have been closest to: Multiple Choice $2,400 U $13,600 U $2,400 F $13,600 F
Lochner Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for June. Fixed Element per Month Variable Element per Well Serviced Actual Total for June Revenue $ 5,600 $ 148,000 Employee salaries and wages $ 40,600 $ 1,200 $ 73,700 Servicing materials $ 500 $ 13,600 Other expenses $ 42,800 $ 43,300 When the company prepared its planning budget at the beginning of June, it assumed that 24 wells would have been serviced. However, 26 wells were actually serviced during June. The activity variance for revenue for June would have been closest to: $13,600 U $11,200 U $13,600 F $11,200 F
Renton company is reviewing the results of its production during the most recent fiscal year. Due to seasonality of the bussiness, the volume of production flactuates during the year. Renton would like to analyze the fixed and variable costs for purposes of estimating the budget for upcoming fiscal year. The cost accountant provided the following data: Units produce total costs January 1,100 12,530 February 1,200 13,260 March 1,400 14,720 April 1,500 15,450 May 1,800 17,640 June 2,100 19,830 July 2,000 19,100 August 1,900 18,370 September 1,400 14,720 October 1,500 15,450 November 1,300 13,990 December 1,700 16,910 Total 18,900 191,170 Required: Calculate the variable cost per unit and the total fixed cost using the following: a. High and low point method b. Average method (compare the two lowest quarters) c. Graphical method d. Method of least squares
Gayner Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for November. Variable Actual Fixed Element Element per Total for per Month November Well Serviced 4,300 $ 148,400 Revenue Employee salaries and 1,000 $ 006 wages 009 2$ 20,200 Servicing materials $29,600 30,300 Other expenses When the company prepared its planning budget at the beginning of November, it assumed that 30 wells would have been serviced. However, 34 wells were actually serviced during November. The spending variance for "Servicing materials" for November would have been closest to: MacBook Air い DD 888 delete 8. 6 9 %24 %24 %24 %24 %24
Schoening Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for January.
Pickrel Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element Variable Element per Well per Month Serviced Revenue $5,500 Employee salaries and wages $53,700 $1,300 Servicing materials other expenses $ 600 $34,400 When the company prepared its planning budget at the beginning of November, it assumed that 27 wells would have been serviced. However, 31 wells were actually serviced during November. The amount shown for "Servicing materials" in the planning budget for November would have been closest to: Multiple Choice $19,000 $16,200 $16,548 $18,600
Rudick Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element per Month Variable Element per Well Serviced Revenue $4,500 Employee salaries and wages $47,400 $1,200 Servicing materials $ 700 Other expenses $29,500 When the company prepared its planning budget at the beginning of July, it assumed that 34 wells would have been serviced. However, 36 wells were actually serviced during July. The activity variance for revenue for July would have been closest to:
Reton Company is reviewing the results of itts production during tthe most recent fiscal year. Due to seasonality of the business, the volume of production fluctuates during the year. Renton would like to analyze the fixed and variable costs for purposes of estimating the budget for the upcoming fiscal year. The cost accountant provided the following data: UNITS PRODUCED TOTAL COST January 1,100 ₱12,530 February 1,200 13,260 March 1,400 14,720 April 1,500 15,450 May 1,800 17,640 June 2,100 19,830 July 2,000 19,100 August 1,900 18,370 September 1,400 14,720 October 1,500 15,450 November 1,300 13,990 December 1,700 16,910 TOTAL 18,900 191,970 Required: Calculate the variable cost per unit and the total fixed cost using the following: Average method (compare the two lowest quarters) Graphical method Method of least squares
Reton Company is reviewing the results of itts production during tthe most recent fiscal year. Due to seasonality of the business, the volume of production fluctuates during the year. Renton would like to analyze the fixed and variable costs for purposes of estimating the budget for the upcoming fiscal year. The cost accountant provided the following data: UNITS PRODUCED TOTAL COST January 1,100 ₱12,530 February 1,200 13,260 March 1,400 14,720 April 1,500 15,450 May 1,800 17,640 June 2,100 19,830 July 2,000 19,100 August 1,900 18,370 September 1,400 14,720 October 1,500 15,450 November 1,300 13,990 December 1,700 16,910 TOTAL 18,900 191,970 Calculate the variable cost per unit and the total fixed cost using the Graphical method.
Reton Company is reviewing the results of itts production during tthe most recent fiscal year. Due to seasonality of the business, the volume of production fluctuates during the year. Renton would like to analyze the fixed and variable costs for purposes of estimating the budget for the upcoming fiscal year. The cost accountant provided the following data: UNITS PRODUCED TOTAL COST January 1,100 ₱12,530 February 1,200 13,260 March 1,400 14,720 April 1,500 15,450 May 1,800 17,640 June 2,100 19,830 July 2,000 19,100 August 1,900 18,370 September 1,400 14,720 October 1,500 15,450 November 1,300 13,990 December 1,700 16,910 TOTAL 18,900 191,970 Calculate the variable cost per unit and the total fixed cost using the Average method (compare the two lowest quarters).
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