The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 60 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost Cost per Cost per Student per Month Course Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 2,930 $ 290 $1,210 $ 4,900 $2,400 $ 3,600 85 45 $ 7 For example, administrative expenses should be $3,600 per month plus $45 per course plus $7 per student. The company's salee should average $870 per student The company planned to run four courses with a total of 60 students however, it actually ran four courses with a total of only 56 students. The actual operating results for September appear below: Actual 2 49,300 $ 11,000 $ 17,250 $ 1,960 $ 4,980 $ 2,540 $ 3,626 Revenue Instructor wages classroom supplies Canpus rent Insurance Aoninistrative expenses Required:

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 60 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost Cost per Cost per Student per Month Course Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 2,930 $ 290 $1,210 $ 4,900 $2,400 $ 3,600 85 45 $ 7 For example, administrative expenses should be $3,600 per month plus $45 per course plus $7 per student. The company's salee should average $870 per student The company planned to run four courses with a total of 60 students however, it actually ran four courses with a total of only 56 students. The actual operating results for September appear below: Actual 2 49,300 $ 11,000 $ 17,250 $ 1,960 $ 4,980 $ 2,540 $ 3,626 Revenue Instructor wages classroom supplies Canpus rent Insurance Aoninistrative expenses Required:

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

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

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

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 18BEA: Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer...

See similar textbooks

Similar questions

Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer to the information for Pizza Vesuvio on the previous page. Assume that this information was used to construct the following formula for monthly labor cost. TotalLaborCost=5,237+(7.40EmployeeHours) Required: Assume that 675 employee hours are budgeted for the month of September. Use the total labor cost formula for the following calculations: 1. Calculate total variable labor cost for September. 2. Calculate total labor cost for September.
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period That Differs from the Data Period Refer to the information for Pizza Vesuvio on the previous page. Assume that this information was used to construct the following formula for monthly labor cost. TotalLaborCost=5,237+(7.40EmployeeHours) Required: Assume that 4,000 employee hours are budgeted for the coming year. Use the total labor cost formula to make the following calculations: 1. Calculate total variable labor cost for the year. 2. Calculate total fixed labor cost for the year. 3. Calculate total labor cost for the coming year. Use the following information for Brief Exercises 3-17 through 3-20: Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
Product costing and decision analysis for a service company Blue Star Airline provides passenger airline service, using small jets. The airline connects four major cities: Charlotte, Pittsburgh, Detroit, and San Francisco. The company expects to fly 170,000 miles during a month. The following costs are budgeted for a month: Blue Star management wishes to assign these costs to individual flights in order to gauge the profitability of its service offerings. The following activity bases were identified with the budgeted costs: The size of the companys ground operation in each city is determined by the size of the workforce. The following monthly data are available from corporate records for each terminal operation: Three recent representative flights have been selected for the profitability study. Their characteristics are as follows: Instructions Determine the fuel, crew, and depreciation cost per mile flown. Determine the cost per arrival or departure by terminal city. Use the information in (1) and (2) to construct a profitability report for the three flights. Each flight has a single arrival and departure to its origin and destination city pairs.
Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Previously, Sanjay Bhatt, Firenza Companys controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 40 percent markup over full manufacturing cost. Required: 1. Calculate a plantwide rate for Firenza Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates? 3. Which bids are more accurate? Why?
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports–the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 60 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Course Cost per Student Instructor wages ... $2930 Classroom supplies ... $290 Utilities ... $1210 $85 Campus rent ... $4,900 Insurance ... $2400 Administrative expenses... $3,600 $45 $7 For example, administrative expenses should be $3,600 per month plus $45 per course plus $7 per student. The company’s sales should average $870 per student. The actual operating results for September appear below: The company planned to run four courses with a total of 60 students ; however , it actually ran four…
2. The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for budgeting purposes-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month Cost per Course Cost per Student $2,930 $280 $60 $1,240 $4,900 $2,300 $3,600 $46 $7 For example, administrative expenses should be $3,600 per month plus $46 per course plus $7 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 53 students. The actual operating results for September were as follows: 15+ D
aces The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 61 students enrolled in those two courses. Data concerning the company's cost formulas appear below. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Courses Students Revenue Expenses Instructor wages Classroom supplies $42 For example, administrative expenses should be $3,700 per month plus $42 per course plus $4 per student. The company's sales should average $880 per student. Utilities Campus rent Insurance Fixed Cost per Cost per Month Administrative expenses Total expense Net operating income $ 1,220 $4,500 $2,100 $ 3,700 The company…
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for budgeting purposes-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 60 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost per Cost per Cost per Instructor wages Classroom supplies Month Course $ 2,930 Student $ 270 $ 75 Utilities $ 1,220 Campus rent $ 4,900 Insurance $ 2,400 Administrative expenses $ 3,600 $ 44 $5 For example, administrative expenses should be $3,600 per month plus $44 per course plus $5 per student. The company's sales should average $870 per student. The company planned to run four courses with a total of 60 students; however, it actually ran four courses with a total of only 54 students. The actual operating results for September were as follows: Revenue Instructor wages Classroom supplies…
The Gourmand Cooking School runs short cooking courses at Its small campus. Management has identified two cost drivers It uses in Its budgeting and performance reports-the number of courses and the total number of students, For example, the school might run two courses in a month and have a total of 60 students enrolled fin those two courses. Data conceming the company's cost formulas appear below: Cost per Course $ 2,920 Cost per Student Fixed cost per Month Instructor wages classroom supplies Utilities Campus rent Insurance $ 300 $ 1,210 $ 4,800 $ 2,300 $ 3,800 $75 Administrative expenses $ 40 $ 3 For example, administrative expenses should be $3,800 per month plus $40 per course plus $3 per student. The company's sales should average $870 per student. The company planned to run four courses with a total of 60 students; however, It actually ran four courses with a total of only 58 students. The actual operating results for September appear below: Actual $ 49,300 $ 10,960 $ 17,850 $…
Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity varlances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Gourmand Cooking School Flexible Budget Performance Report es For the Month Ended September 30 Flexible Planning Budget Actual Results Budget Courses 3. Students 42 Revenue $4 32,400 Expenses: Instructor wages 9,080 8,540 Classroom supplies Utilitios 1,530 Campus rent 4,200 Insurance 1,890 Administrative expenses 3,790 Total expense 29,030 Net operating income 3,370
Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Planning Budget Flexible Actual Results Budget Courses Students 42 Revenue 32,400 Expenses: Instructor wages 9,080 Classroom supplies 8,540 Utilities 1,530 Campus rent 4,200 Insurance 1,890 Administrative expenses 3,790 Total expense 29,030 Net operating income 3,370 3. %24 %24
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses, Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month $ 1,210 $5,000 $ 2,300 $ 3,900 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Cost per Course $ 2,930 $ 55 Cost per Student $ 41 $3 For example, administrative expenses should be $3,900 per month plus $41 per course plus $3 per student. The company's sales should average $870 per student. $ 270 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55…