Please don't provide answer in image format thank you Marcie Bread Company (Marcie) bakes loaves of bread. The monthly equipment maintenance cost for Marcie is considered tobe a mixed cost. The variable portion of the cost is related to the number of loaves baked. The production volume andmaintenance costs for the past six months are presented below. Marcie uses the high-low method to separate mixed costs intoits fixed and variable portions..Month Volume of Production (Number of Loaves) Equipment Maintenance CostsJanuary482,000$11,076February249,000$6,928March435,000April90,000May562,000314,000JuneDo not enter dollar signs or commas in the input boxes..a) Calculate the variable rate for the equipment maintenance cost.Round your answer to 5 decimal places.Variable Cost per Unit: $$10,239$4,098$12,500$8,085CAct b) Calculate the fixed portion of the equipment maintenance cost.Round your answer to the nearest whole number.Fixed Cost: $c) Assume that 420,000 loaves is the budgeted production level for June. Using the results of the high-low method in parts a)and b), what is the expected total equipment maintenance cost for June?Round your answer to 2 decimal places.Expected total equipment maintenance cost for June: $

Lets understand the basics.High low method is a method of cost estimation being used in business. It…

Month Volume of Production (Number of Loaves) Equipment Maintenance Costs January 482,000 $11,076 February 249,000 $6,928 March 435,000 $10,239 April 90,000 $4,098 May 562,000 314,000 June dollar signs or commas in the input boxes. $12,500 $8,085

Month Volume of Production (Number of Loaves) Equipment Maintenance Costs January 482,000 $11,076 February 249,000 $6,928 March 435,000 $10,239 April 90,000 $4,098 May 562,000 314,000 June dollar signs or commas in the input boxes. $12,500 $8,085

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...

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Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable costs of $65 per cubic yard. The company has fixed expenses of $15,000 per month. In August, the company sold 240 cubic yards of Grade A mulch. A. Calculate the contribution margin per unit for Grade A mulch. B. Calculate the contribution margin ratio of the Grade A mulch. C. Prepare a contribution margin income statement for the month of August.
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: Month Utilities Machine Hours January $8,700 800 February 8,360 720 March 8,950 810 April 9,360 920 May 9,625 950 June 9,150 900 The variable utilities cost per machine hour for Barkoff is: Select one: a. $5.00. b. $4.50. c. $0.18 d. $5.50.e. None of the answers is correct.
Jacarda Company makes a composting bin that is subject to wide seasonal variations in demand. Unit product costs are computed on a quarterly basis by dividing each quarter's manufacturing costs (materials, labour, and overhead) by the quarter's production in units. The company's estimated costs, by quarter, for the coming year are given below: Direct materials. Direct labour Manufacturing overhead Total manufacturing costs Number of units to be produced Estimated unit product cost Management finds the variation in unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead, since it is the largest element of cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. After some analysis, you have determined that the company's overhead costs are mostly fixed and therefore show little sensitivity to changes in the level of production.…
Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,200 machine hours, with the following data being available for the first six months of the year: Month Utilities Machine Hours January 9,600 890 February 9,260 810 March 9,850 900 April 10,260 1,010 May 10,732 1,040 June 10,050 990 The fixed utilities cost per month for Barkoff is: Multiple Choice $3,440. $4,076. $4,436. • $4,776. None of the answers is correct
Jacarda Company makes a composting bin that is subject to wide seasonal variations in demand. Unit product costs are computed on a quarterly basis by dividing each quarter's manufacturing costs (materials, labour, and overhead) by the quarter's production in units. The company's estimated costs, by quarter, for the coming year are given below: Direct materials Direct labour Manufacturing overhead Total manufacturing costs Number of units to be produced Estimated unit product cost Predetermined overhead rate-unit of product Predetermined overhead rate-basis on direct labour cost $ First 277,200 Second Third Fourth 554,400 $277,200 $138,600 $415,800 138,600 69,300 207,900 365,400 340,200 327,600 352,800 $1,197,000 $756,000 $535,500 $976,500 84,000 42,000 21,000 63,000 14.25 $ 18.00 $ 25.50 $ 15.50 Management finds the variation in unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead, since it is the largest…
The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month TotalMaintenance Costs TotalMachine Hours January $2,817 3,734 February 3,201 4,268 March 3,841 6,402 April 4,801 8,429 May 3,414 5,335 June 4,930 8,536 Determine the variable-cost components using the high-low method. (Round variable cost to 2 decimal places e.g. 12.25.) Variable cost per machine hour $ eTextbook and Media Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.) Fixed costs $
1) Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: Month January February March Utilities $ 8,700 8,360 8,950 9,360 9,625 Machine Hours 800 720 S10 April May 920 950 June 9,150 900 The fixed utilities cost per month for Barkoff is: A) $4,400. B) $5,100. 9 $4,760. D) $3,764. E) None of the answers is correct.
Using variable costing, service company Paradise Pool Cleaning Service provides pool cleaning services to residential customers. The company has three employees, each assigned to specific customers. The company considers each employee's territory as a business segment. The company incurs variable costs that include the employees' wages, pool chemicals, and gas for the service vans. Fixed costs include depreciation on the service vans. Following is the income statement for the month of July: Paradise Pool Cleaning Service Income Statement for the month Ended July 31, 2020 Benton McMillian Faulkner Total Service Revenue $ 4,000 $ 3,000 $ 3,500 $ 10,500 Variable Costs 1,600 1,500 2,100 5,200 Contribution Margin 2,400 1,500 1,400 5,300 Fixed Costs 3,000 Operating Income $ 2,300 Requirements 1. Calculate the contribution margin ratio for each business segment. 2. The business segments had the following numbers of customers: Benton, 80; McMillian, 60; and Faulker, 70. Compute the service…
Hot'lanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: Month Utilities Machine Hours January $8700 800 February 8360 720 March 8950 810 April 9360 920 May 9625 950 June 9150 900 1The variable utilities cost per machine hour is: a) $0.18. b) an amount other than those listed above. ) $4.50. d) $5.00. e) $5.50. 2. The fixed utilities cost per month is: a) an amount other than those listed above. b) $4,760. ) $3,764. d) $5,100. e) $4,400. 3. Using the high-low method, the utilities cost associated with 980 machine hours would be: a) an amount other than those listed above. b) $9,660. ) $9,700. d) $9,790. e) $9,510.
Jacarda Company makes a composting bin that is subject to wide seasonal variations in demand. Unit product costs are computed on a quarterly basis by dividing each quarter's manufacturing costs (materials, labour, and overhead) by the quarter's production in units. The company's estimated costs, by quarter, for the coming year are given below: Direct materials Direct labour Manufacturing overhead Total manufacturing costs Number of units to be produced Estimated unit product cost Management finds the variation in unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead, since it is the largest element of cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. After some analysis, you have determined that the company's overhead costs are mostly fixed and therefore show little sensitivity to changes in the level of production.…