FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- 2.) Beehive Company has the following per unit cost data for 5,000 units of production. $12 Direct materials Direct labor 9 Indirect materials 2 Indirect labor 3 Rent on the factory 5 ver 08. Answer the following questions. Round to two decimals when necessary. a.) If 6,000 units are produced, what is the variable cost per unit? $ b.) If 8,000 units are produced, what is the variable cost per unit? $002 c.) If 6,000 units are produced, what is the fixed cost per unit? $ d.) If 8,000 units are produced, what is the fixed cost per unit? $ e.) If 6,000 units are produced, what is the total fixed cost? $ f.) If 8,000 units are produced, what is the total fixed cost? $ g.) If 6,000 units are produced, what is the total manufacturing overhead costs? $ h.) If 8,000 units are produced, what is the total manufacturing cost? $ torl to noihog 1200 1200 bozit wel-doid 3.) Using the above information, develop a cost equation for Beehive Company. 4.) Use your cost equation to predict total costs for…arrow_forwardLeo Company wishes to determine the fixed portion of its electrical costs (a mixed cost). Management believes that the variable portion of the electrical costs is driven by machine-hours. Information for the previous three months follows: Machine-hours Electrical cost August 33 000 R6 000 September 31 000 R5 850 October 34 000 R6 100 Using the high-low method, the fixed portion of the company's electrical costs would be estimated to be closest to: A. R3 750 B. R4 080 C. R3 267 D. R2 830arrow_forwardAnalyzing Income under Absorption and Variable Costing Variable manufacturing costs are $85 per unit, and fixed manufacturing costs are $106,400. Sales are estimated to be 5,600 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 5,600 units and a plan to produce 7,600 units?$fill in the blank 1 b. How much would variable costing operating income differ between the two production plans?$fill in the blank 2arrow_forward
- Jason Inc. shows the following manufacturing costs for the first four months of the year. Manufacturing Costs for the First Four Months Months Production in Units Total Costs January 2,500 $33,750 February 1,800 $29,900 March 3,000 $36,500 April 2,600 $34,300 Using the high-low method, determine the variable costs per unit. (Round intermediate calculations and your final answer to two decimal places.) Group of answer choices $14.39 $12.17 $13.50 $5.50arrow_forwardsavitaarrow_forwardPlease provide answer in text (Without image)arrow_forward
- Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to determine Smithson's fixed costs per month. Round your final answer to the nearest dollar. Do not round interim calculations. Cost January $26,800 February 38,500 March 28,200 April 30,800 a. $23,329 Ob. $10,978 Oc. $43,914 Od. $13,723 Machine Hours 9,500 18,000 11,700 15,400 ?arrow_forward4arrow_forwardThe controller of Sheridan Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month Total Maintenance Costs Total Machine Hours January $2,930 350 February 3,230 400 March 3,830 550 April 4,730 640 May 3,430 550 June 5,730 750 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.) Variable cost per machine hour eTextbook and Media Determine the fixed costs using the high-low method for this mixed cost.arrow_forward
- Please provide Solutions with explanationarrow_forwardGiven the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,140 15,134 April 2,606 10,115 May 2,803 11,896 June 3,889 18,146 a.$0.16 b.$1.12 c.$1.08 d.$1.60arrow_forwardYou are given financial statements and a Dupont analysis for Tesco and Ahold. What do you conclude about the two companies’ performances based on these numbers?arrow_forward
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