The relevant range isO usually from zero to 100% of operating capacity.the range of activity in which variable costs will be curvilinear.the range of activity in which fixed costs will be curvilinear.O the range over which the company expects to operate during a year.

Due to its ability to define the parameters that certain cost behaviors are presumed to stay…

Answered: The relevant range is O usually from…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 3EA: Burnham Industries incurs these costs for the month: A. What Is the prime cost? B. What is the...

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E Perfect Pop spends $1.00 on direct materials, direct labour, and variable manufacturing overhead for every unt (12 pack of soda) it produces Fed manufacturing overhead costs $3 milion per yer The plant which is currently operating at only 70% of capacity, produced 15 million units this year Management plans to operate closer to full capacity next year, producing 20 million units Management does not anticipate any changes in the prices it pays for materials, labour, and manufacturing overhead Requirements Requirement a. What is the current total product cost for the 15 million units), including faed and varable costs? Determine the formula, then calculate the current total product cost milion millon GID Total product costs millon
Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $190 per unit during the current year. Its income statement is as follows: Sales $190,000,000 Cost of goods sold (102,000,000) Gross profit $88,000,000 Expenses: Selling expenses $15,000,000 Administrative expenses 14,700,000 Total expenses (29,700,000) Operating income $58,300,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative 50% 50% expenses Management is considering a plant expansion program for the following year that will permit an increase of $13,300,000 in yearly sales. The expansion will increase fixed costs by $4,500,000 but will not affect the relationship between sales and variable costs. Required:
What time period does life cycle costing for a product cover? a. Short periods of one accounting year b. The product’s entire life time c. A quarter to a year d. An undetermined period of time
Please I need help in this question. Answer as soon as possible. Period Question: Estimate average cost per unit as per life cycle costing 1 2 3 4 5 Estimated production (units) J 12,000 18,000 80,000 25,000 8,000 Fixed cost per annum (AED) C 60,000 60,000 60,000 60,000 60,000 Variable cost @ AED 2 (AED) 24,000 36,000 1,60,000 50,000 16,000 Total cost (AED) 84,000 96,000 2,20,000 1,10,000 76,000 Cost per unit (AED) 7.00 5.33 2.75 4.40 9.50
Accounting Question
In the process of finding the optimum order quantity the following costs are obtained per order or per unit annually. Inspection Cost = SR 4 Cost of Interest = SR 4 Insurance Cost = SR 2 Administration Cost = SR 4 Obsolescence = SR 3 Depreciation Cost = SR 2 Breakage Cost = SR 2 Given that the annual Demand is 500,000. Number of order?
Consider a company that rents a building for £500,000 a year for the purpose of manufacturing between 100,000 and 120,000 units of production (the relevant range of activity). What will happen to the rental cost per unit of production as production levels increase? The rental cost per unit of production will: a. Behave in a non-linear fashion b. Increasec. Decreased. Remain fixed
1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. Alden Company’s monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold Total Cost 1 319,000 $ 156,500 2 164,000 100,250 3 264,000 204,600 4 204,000 99,000 5 289,000 200,500 6 189,000 111,000 7 361,000 285,296 8 269,000 150,750 9 76,200 66,000 10 149,000 129,625 11 93,000 93,000 12 99,000 82,650
A company incurs both fixed and variable production costs. If production volume goes up by 25%, then the total variable costs would .... . Increase by an amount less than 25% .A Decrease by 25% .B Remain the same Increase by 25% .D
Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC=q+35 MR=560+22q-q^2 Where q is the quantity produced and the firm’s break-even is 5 units per week You are Required to I. determine the total cost and the total revenue function in terms of q. II. estimate the output at which profit is maximize III. calculate the maximum profit
What is the effect on the cost per unit if activity increased by 10%? O A. Decrease by 10% O B. Decrease by less than 10% C. Increase by less than 10% D. Remain constant
1 Wolverine Company's average cost per unit is $1.425 at the 16,000-unit level of activity and $1.38 at the 20,000-unit level of activity. The selling price is $3.00 per unit. Assume that all of the activity levels mentioned in this problem are within the relevant range. Predict the following items for Wolverine Company: Required: 1. Variable cost per unit. 2. Total fixed cost per period. 3. Total expected costs at the 18,000-unit level of activity. 4. Total Contribution Margin at the 18,000 unit level of production and sales.

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The relevant range is O usually from zero to 100% of operating capacity. the range of activity in which variable costs will be curvilinear. the range of activity in which fixed costs will be curvilinear. O the range over which the company expects to operate during a year.