Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Units Produced Total Lumber Cost Total Utilities Cost Total Machine Depreciation Cost 6,000 shelves $72,000 $7,900 $135,000 12,000 shelves 144,000 14,800 135,000 24,000 shelves 288,000 28,600 135,000 30,000 shelves 360,000 35,500 135,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Utilities Depreciation 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places. Cost Fixed Portion of Cost Variable Portion of Cost (per Unit) Lumber $fill in the blank e1059d0c400507e_4 $fill in the blank e1059d0c400507e_5 Utilities fill in the blank e1059d0c400507e_6 fill in the blank e1059d0c400507e_7 Depreciation fill in the blank e1059d0c400507e_8 fill in the blank e1059d0c400507e_9
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow.
Units Produced |
Total Lumber Cost |
Total Utilities Cost |
Total Machine Cost |
| 6,000 shelves | $72,000 | $7,900 | $135,000 |
| 12,000 shelves | 144,000 | 14,800 | 135,000 |
| 24,000 shelves | 288,000 | 28,600 | 135,000 |
| 30,000 shelves | 360,000 | 35,500 | 135,000 |
1. Determine whether the costs in the table are variable, fixed, mixed, or none of these.
| Lumber | |
| Utilities | |
| Depreciation |
2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places.
Cost |
Fixed Portion of Cost |
Variable Portion of Cost (per Unit) |
| Lumber | $fill in the blank e1059d0c400507e_4 | $fill in the blank e1059d0c400507e_5 |
| Utilities | fill in the blank e1059d0c400507e_6 | fill in the blank e1059d0c400507e_7 |
| Depreciation | fill in the blank e1059d0c400507e_8 | fill in the blank e1059d0c400507e_9 |
High-Low
Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio Files is analyzing its
| Units Produced | Total Cost | ||
| January | 4,360 | units | $65,600 |
| February | 275 | 6,250 | |
| March | 1,000 | 15,000 | |
| April | 8,775 | 176,250 | |
| May | 1,750 | 32,500 | |
| June | 3,015 | 48,000 |
1. From the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the high-low method. Recall that Total Costs = (Variable Cost Per Unit x Number of Units Produced) + Fixed Cost. Complete the following table.
| Total Fixed Cost | Variable Cost per Unit |
| $fill in the blank f7075ff7ef9c005_1 | $fill in the blank f7075ff7ef9c005_2 |
2. With your Total Fixed Cost and Variable Cost per Unit from the high-low method, compute the total cost for the following values of N (Number of Units Produced).
| Number of Units Produced |
Total Cost |
| 3,500 | $fill in the blank f7075ff7ef9c005_3 |
| 4,360 | fill in the blank f7075ff7ef9c005_4 |
| 8,775 | fill in the blank f7075ff7ef9c005_5 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
