Perrault Drycleaners has capacity to clean up to 7,500 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Derrick Perrault, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 4,500 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 7,500 4,500 Garments 6,000 Garments Garments Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment $ $ 3,600 KIDE 2.40

Perrault Drycleaners has capacity to clean up to 7,500 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Derrick Perrault, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 4,500 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 7,500 4,500 Garments 6,000 Garments Garments Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment $ $ 3,600 KIDE 2.40

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 10EA: This cost data from Hickory Furniture is for the year 2017. Using the high-low method, express the...

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Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Dale Pillard, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 6,000 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment 6,000 Garments $ 7,500 Garments 5,625 2.40 9,000 Garments
Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. Month Maintenance Costs Machine Hours 1 $ 2,660 1,750 2 2,820 1,830 3 2,970 1,910 4 3,080 1,930 5 3,160 1,960 6 3,130 1,940 7 3,070 1,920 8 2,910 1,900 9 2,680 1,760 10 2,280 1,160 11 2,290 1,360 12 2,510 1,650
Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Required: 1. Prepare a statement of cost of goods sold in good form. 2. What if the beginning inventory of finished goods decreased by 5,000? What would be the effect on the cost of goods sold?
Chapter 25 eBook 4 Show Me How Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,270 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $71 Factory overhead $199,500 Direct labor 37 Selling and administrative expenses 70,800 Factory overhead 22 Selling and administrative expenses 22 Total variable cost per unit $152 Voice Com desires a profit egual to a 15% rate of return on invested assets of $601,600. a. Determine the amount of desired profit from the production and sale of 5,270 cell phones. $ 90,240 v b. Determine the product cost per unit for the production of 5,270 of cell phones. Round your answer to the nearest whole dollar. 168 V per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 31 х%
Ethan Manufacturing Inc. produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Month 1 2345 67 000 8 9 10 11 12 Maintenance Costs $ 2,740 2,900 3,050 3,160 3,240 3,210 3,150 2,990 2,760 2,360 2,370 2,590 Machine Hours 1,830 1,910 1,990 2,010 2,040 2,020 2,000 1,980 1,840 Required 1 Required 2 1,240 1,440 1,730 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. Complete this question by entering your answers in the tabs below. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. (Do not round intermediate calculations, with the exception…
question is in image. Required: Prepare a schedule of cost of goods manufactured. Prepare a schedule of cost of goods sold. Prepare an income statement. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how both cost schedules and the income statement will change if the following data change: direct labor is $390,000 and utilities cost $35,000.
Slarlet Beauty manufactures and sells a face cream lo small specialy stores in the greater Los Angeles area. It presents the monthly operating income stalement shown here to George Diaz, a polenial investor in the business. Help Mr. Diaz understand Starlet Beauty's cost structure. E(Click the icon to view the operating income stalement.) Read the equirements. Data Table Requirement 1. Recast the income statement to emphasize contribution margin. Starlet Cosmetics Operating Income Statement, June 2017 Starlet Beauty Operating Income Statement, June 2017 10,000 Units sold Revenues 200,000 Cost of goods sold Variable manufacturing costs 80,000 32,900 Fixed manufacturing costs 112,900 Total Gross margin 87,100 Operating costs Variable marketing costs 48,000 17.500 Fixed marketing and administrative costs 65,500 Total operating costs 21,600 Operating income Print Done Choose from any list or enter any number in the input fields and then click Check Answer.
If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,900 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,900 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why?
(Question 1 continued) c. What is the total manufacturing cost of each vehicle if 100 vehicles are produced each month? 500 vehicles? How do you explain the difference in the manufacturing cost per unit (briefly)? с.
Johnson Company manufactures and sells a single product. The company's sales and expenses for last year follow: E(Click the icon to view the information.) X Data Table Read the requirements Requirement 1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table: Total Per Unit % a. What is the total contribution margin? $ 81,250 $ Sales 25 ? The total contribution margin is $ ? Variable expenses Contribution.margin. 13,000 Fixed expenses $ 19,500 Operating income Done Print
Hello! I posted this question and only the 3 subparts were solved kindly solve the remaining 2 parts i) Using the high-low method derive the cost function that can be used to predict the Sales&Marketing department overhead cost using the Number of Baby Powder OrdersReceived during the month (X1) as the activity level. ii) Using the high-low method derive the cost function that can be used to predict the Sales&Marketing department overhead cost using the Total weight of Baby Powder sold duringthe month in Kgs (X2)as the activity level iii) Using the cost function derived in (i) above using the Number of Baby Powder OrdersReceived during the month (X1) as the activity level estimate the Sales &Marketingdepartment overhead cost for the month of September 2021 where the Number of BabyPowder Orders Received is expected to be 1,800 orders iv) Using the cost function derived in (ii) above using the Total weight of Baby Powder soldduring the month in Kgs (X2) as the activity level…
This cost data from Hickory Furniture is for the year 2017. Using the high-low method, express the companys utility costs as an equation where X represents number of tables produced. Predict the utility costs if 800 tables are produced. Predict the utility costs if 600 tables are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between number of tables produced and utility expenses.