Identify the type of cost with reference to marginal costingprinciples:1.A company had paid P100,000 to a marketing research companyto find expected demand of the newly developed product of thecompany2.A company has invested P45,00,000 in a project. The companycould have earned 6,00,000 by investing the amount in propergovernment securities.3.Accountant of a cloth factory paid P115,000 for water which hasbeen used for washing the clothes.

Marginal costing is an method of costing and consist of variable cost and fixed cost. Sunk cost,…

Answered: Identify the type of cost with…

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 5DQ

See similar textbooks

Similar questions

Sondela Ltd is a manufacturing company that is planning to use the cost-plus pricing method to set the selling price. The company has provided the following data: Variable cost per unit: Direct material R30 Direct labour R45 Manufacturing overheads R75 Sales commission R15 Selling expenses R23 Total fixed costs Depreciation - factory R27 000 Depreciation - administration R45 000 Rent - factory R31 500 Rent - head office R22 500 Selling and administration cost R60 000 Required: (c) Calculate the selling price if the company adds mark-up of 82% on variable manufacturing costs.
Sondela Ltd is a manufacturing company that is planning to use the cost-plus pricing method to set the selling price. The company has provided the following data: Variable cost per unit: Direct material R30 Direct labour R45 Manufacturing overheads R75 Sales commission R15 Selling expenses R23 Total fixed costs Depreciation - factory R27 000 Depreciation - administration R45 000 Rent - factory R31 500 Rent - head office R22 500 Selling and administration cost R60 000 Required: (A) Calculate the selling price if the company adds mark-up of 45% on variable costs.
Exercise 10-32 (Algo) Activity-Based Costing of Customers (LO 10-3, 4) Northwestern Bank (NB) offers only checking accounts. Customers can write checks and use a network of automated teller machines. NB earns revenue by investing the money deposited; currently, it averages 4.1 percent annually on its investments of those deposits. To compete with larger banks, NB pays depositors 0.3 percent on all deposits. A recent study classified the bank's annual operating costs into four activities. Activity Using ATM Visiting branch Processing transactions Managing functions Total overhead Cost Driver Number of uses Number of visits Number of transactions Total deposits Cost $ 1,936,800 1,900,800 8,521,920 7,321,600 $ 19,681,120 Driver Volume 3,228,000 uses 396,000 visits 129,120,000 transactions $ 615,035,000 in deposits Data on two representative customers follow: Emily Jacob ATM uses 40 130 Branch visits 5 Number of transactions Average deposit 200 45 520 $ 10,000 $ 10,000
?Refer to CASE 2 (Company B), What is the expected total cost of product Y if traditional cost accounting is used $145,000 .a None of the amounts given b O $106,500 .c O $185,000 d O
Uninder Company uses the high-low method to estimate the cost function. The information for 2017 is provided below: Machine-hours Labor Costs Highest observation of cost driver 550 $22,000 Lowest observation of cost driver 250 $13,000 What is the slope coefficient? Select one: a. $30.00 b. $40.00 c. $43.75 d. $52.00
Alba Company is considering the introduction of a new product. To determine the selling price of this product, you have gathered the following information: • Direct material cost per unit Direct labor cost per unit • Variable manufacturing cost per unit Total fixed manufacturing costs.. • Variable selling and administration cost per unit Total fixed selling and administration costs.. .$3,000 .$2,250 ..S1,000 .S1,750,000 ..$1,250 .$550,000 If the company requires a rate of return 18% on its investments and $6,000,000 investments are needed. The total direct materials to be used in the production is $3,000,000. Required: 1. If the company uses absorption costing approach to cost-plus pricing, compute: a. The unit product cost. b. The markup percentage. c. The selling price per unit. 2. Assume that the company is considering the introduction of other new product. If the target-selling price per unit is $5,500 and the company investing $5,000,000 to purchase equipment needed produce 500…
(b) Boxvile company limited which manufactures leather boxes has provided the following statements: Sales Material Cost Labour cost Variable overheads i) ii) iii) Fixed overheads Profit iv) Sh. 450,000 300,000 120,000 440,000 Sh. 1,500,000 The budgeted capacity of the business is Sh. 2,000,000 but the key factor is sales. The company proposes to use the existing capacity by reducing the selling price by 5%. 1,310,000 190,000 Required: Prepare a forecast statement which should show the effect of the proposal to reduce the selling price and include any changes in costs expected during the coming year. The following additional information is available. Sales forecast after price reduction Sh. 1,900,000. Direct material cost to increase by 2%. Wages are to increase by 5% per unit. Variable overhead cash to increase by 5% per unit as fixed overheads increase by Sh. 20,000.
clasify each costs as either fixed, variable or mixed: a. shipping boxes used to ship orders b. consulting fee of $200,000 paid to industry specialists for marketing advice c.straight-line depreciation on sewing machines d. salesperson's salary, $10,000 plus 2% of the total sales e. fabric f. dye g. thread h. salary of designers i. brass buttons j. legal fees apid to attorneys in defense of the company in a patent infringement suit, $50,000 plus $87 per hour k. insurance premiums on property, plant, and equipment, $70,000 per year plus $5 per $30,000 of insured value over $8,000,000 l. rental costs of warehouse, $5,000 per month plus $4 per square foot of storage used m. supplies n. leather for patches identifying the brand on individual pieces of apparel o. rent on plant equipment, $50,000 per year p. salary of production vice president q. janitorial services, $2,200 per month r. wages of machine operators s. electricity costs of $.10 per kilowatt-hour t. property taxes on property,…
A company determined that the marginal cost, C′(x) of producing the xth unit of a product is given by C′(x)=x3−2x. Find the total cost function C, assuming that C(x) is in dollars and that fixed costs are $2000.
What would be the impact on the targeted overhead rate if the firm decides to boost marketing expenses by RM20,000, according to the plan? What will be the actual cost of items sold?
The Miramichi Company uses the high-low method to estimate its cost function. The information for the current year is provided below: Highest observation of cost driver Lowest observation of cost driver $12,500 Machine-hours a. O b. $0 O C. $25,000 O d. $125,000 O e. $225,000 2,000 1,000 What is the constant for the estimating cost equation? Costs $225,000 $125,000
An example of an uncontrollable cost would include all of the following except______. A. real estate taxes charged by the county in which the business operates B. per-gallon cost of fuel for the companys delivery trucks C. hourly rate of pay for the companys purchasing manager D. federal income tax rate paid by the company

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

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

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

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

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS