The controller of Joy Co has requested a quick estimate of the manufacturing supplies needed for July when production is expected to be 470,000 units. Below areactual data from the prior three months of operations:MarchAprilMayMultiple Choice$752,060Production in units$755,196450,000540,000480,000Using these data and the high-low method, what is the best estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activityis within the relevant range.)Manufacturing supplies$723,060853,560766,560

The high-low method is used to differentiate the mixed costs. The mixed cost is the combination of…

The controller of Joy Co has requested a quick estimate of the manufacturing supplies needed for July when production is expected to be 470,000 units. Below are actual data from the prior three months of operations: March April May Multiple Choice Production in units $752,060 450,000 540,000 480,000 Using these data and the high-low method, what is the best estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range.) Manufacturing supplies $723,060 853,560 766.560

The controller of Joy Co has requested a quick estimate of the manufacturing supplies needed for July when production is expected to be 470,000 units. Below are actual data from the prior three months of operations: March April May Multiple Choice Production in units $752,060 450,000 540,000 480,000 Using these data and the high-low method, what is the best estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range.) Manufacturing supplies $723,060 853,560 766.560

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

i need the answer quickly
The production planning team of Red Velvet Inc showed that each product requires 3 units of raw materials costing 10 each. The inventory manager requires that 20% of the total raw materials purchased during the month must be kept as monthly ending inventory to avoid shortage The marketing team estimates that the demand of the product is 10,000 units in September 12,000 units in October, and 15,000 units in November. The starting inventory in September for the raw materials is 7,200 units. 1. What is the total units of raw materials needed to be purchased on the month of September to meet the requirements of different departments? 2. What is the total units of raw materials needed for the production of October estimated demand?
Narp. Ine, is preparing a budget for next vear and requires a breakdown of the cost of steam used in its factory into fixed and variable components. The following data on the cost of steam used and the units produced are available for the last six months: 25) Cost of Steam Units Produced July August September. October $ 15,850 13,000 16,370 20,000 17,600 18.500 3,000 c22,000 2,900 3,750 2,670 2.650 16.970 November. December. Total.... S101.320 ans Sharp uses the high-low method of analysis. Required: Show your work in answering the question. Failure to do so results in zero points a. What is the estimated variable cost of steam per unit produced? b. What is the total fixed cost? c. If there were 2,500 units produced the cost of steam would be?
Carlos Cavalas, the manager of Echo Products' Brazilian Division, is trying to set the production schedule for the last quarter of the year. The Brazilian Division had planned to sell 69,850 units during the year, but by September 30 only the following activity had been reported: Inventory, January 1 Production Sales Inventory, September 30 The division can rent warehouse space to store up to 30,700 units. The minimum inventory level that the division should carry is 2,300 units. Mr. Cavalas is aware that production must be at least 5,940 units per quarter in order to retain a nucleus of key employees. Maximum production capacity is 45,700 units per quarter. Demand has been soft, and the sales forecast for the last quarter is only 20,900 units. Due to the nature of the division's operations, fixed manufacturing overhead is a major element of product cost. Required production Required: 1-a. Assume that the division is using variable costing. How many units should be scheduled for…
Calculate the total deviation and analyze it triangulated
Rowe Tool and Die (RTD) produces metal fittings as a supplier to various manufacturing firms in the area. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD. RTD expects to sell 45,000 units during the quarter. RTD carries no inventories. Amount Per Unit Sales revenue $ 1,170,000 $ 26.00 Costs of fitting produced 900,000 20.00 Gross profit $ 270,000 $ 6.00 Administrative costs 207,000 4.60 Operating profit $ 63,000 $ 1.40 Fixed costs included in this income statement are $292,500 for depreciation on plant and machinery and miscellaneous factory operations and $94,500 for administrative costs. RTD has received a request for 10,000 fittings to be produced in the next quarter from Endicott Manufacturing. Endicott has never purchased from RTD, although they have been a local company for many years. Endicott has offered to pay $20 per unit. RTD can easily produce the 10,000 units with its existing…
Victor Inc. has just received its sales and expense report for December, which follows. Item Amount Sales commissions $250,000 Sales staff salaries 100,000 Telephone and mailing 30,000 Building lease payment 60,000 Heat, light, and water 15,000 Packaging and delivery 30,000 Depreciation 25,000 Marketing consultants 10,000 Sales 600,000 You have been asked to develop budgeted costs for the coming year. Since this month is typical, you decide to prepare an estimated budget for a typical month in the coming year and you uncover the following additional data: • Sales volume is expected to increase by 20 percent. • Sales prices are expected to decrease by 10 percent. • Commissions are based on a percentage of selling price. • Sales staff salaries will increase 8 percent next year regardless of sales volume. • Building rent is based on a five-year lease that expires in three years. • Telephone and mailing costs are scheduled to decrease by 5 percent even with no change in sales volume.…
TV Timers, Incorporated, manufactures time control devices for TV's. The firm has the following operating data for its operations in July: Actual market size Budgeted market size Actual market share Budgeted market share Budgeted average contribution margin Actual average contribution margin What is the company's market share variance? A. $1,590 favorable. B. $1,784 favorable. C. $1,740 favorable. D. $2,070 favorable. E. $3,660 favorable. 14,500 16,300 34% 32% $6.00 $5.25
How does the budgeting process translate long-term goals into operating objectives? Suppose Framecraft has an Information Processing Division that provides database management services for the professional photographers and artists who buy its frames. The division uses state-of-the-art equipment and employs five information specialists. Each specialist works an average of 160 hours a month. The division’s controller has com piled the following information: Actual Data for Past Year Forecasted Data for This Year November December January February March Client billings (sales) $25,000 $35,000 $25,000 $20,000 $40,000 Selling and administrative expenses 12,000 13,000 12,000 11,000 12,500 Operating supplies 2,500 3,500 2,500 2,500 4,000 Processing overhead 3,200 3,500 3,000 2,500 3,500 Of the client billings, 60 percent are cash sales collected during the month of sale, 30 per cent are collected in the first month following the sale, and 10 percent are collected in the second month…
Next month, Stein expects to use 400 machine hours, have 80 employees, and ship 9,000 units. Estimate the total operating cost for the month.
The cost of the direct material that should be purchased in August is:
The College of Business at Northeast College is accumulating data as a first step in the preparation of next year's budget development. One cost that is being looked at closely is administrative costs as a function of student credit hours. Data on administrative costs and credit hours for the past thirteen months are shown below: Month July August September October November December January February March April May June July Total Average Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Administrative Costs $ 130, 151 Regression Residual Total 83,293 226,090 216,734 258,433 185,299 219,817 245, 510 209,802 192,095 250,828 171,098 128,677 $ 2,517,827 $ 193,679 SUMMARY OUTPUT Regression Statistics The controller's office has analyzed the data and has given you the results from the regression analysis: Credit Hours df 1 11 12 1,100 557 1,834 1,442 1,751 1,554 1,781 1,815 1,506 1,565 1,802 862 757 18,326 1,410 0.9169697 0.840833374 0.826363681 22,082.14006 13 SS…