Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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Textbook Question
Chapter 1, Problem 4E
EXERCISE 1−4 Fixed and Variable Cost Behavior LO1−4
Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22.
Required:
- Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. Round off the average cost per cup of coffee to the nearest tenth of a cent.
| Cups of Coffee Served in a Week | |||
| 2,000 | 2,100 | 2,200 | |
| Fixed cost | ? | ? | ? |
| Variable cost | ? | ? | ? |
| Total cost | ? | ? | ? |
| Average cost per cup of coffee served | ? | ? | ? |
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Students have asked these similar questions
Exercise 1-4 (Algo) Fixed and Variable Cost Behavior [LO1-4]
Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is
$1,800 and the variable cost per cup of coffee served is $0.33.
Required:
1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the Indicated levels of
activity.
2. Does the average cost per cup of coffee served Increase, decrease, or remain the same as the number of cups of coffee served in a
week Increases?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated
levels of activity. (Round the "Average cost per cup of coffee served" to 3 decimal places.)
Fixed cost
Variable cost
Total cost
Average cost per cup of coffee served
2,100 Cups of 2,200 Cups of
Coffee
Coffee
Exercise 1-4 (Algo) Fixed and Variable Cost Behavior [LO1-4]
Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a
coffee stand is $1,900 and the variable cost per cup of coffee served is $0.37.
Required:
1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the
indicated levels of activity.
2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee
served in a week increases?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated
levels of activity. (Round the "Average cost per cup of coffee served" to 3 decimal places.)
Fixed cost
Variable cost
Total cost
Average cost per cup of coffee served
Cups of Coffee Served in a Week
2,500
2,400
2,600
Activity Rate
Travel
Deliveries
$2 per mile driven.
$ 50 per delivery
$ 22 per phone call
Customer service
Two of the company's many customers include Customer A and Customer B. These two customers consumed the company's activities as follows:
Total Expected Activity
Customer A Customer B
250
5
12
Activity Cost Pool
Travel (number of miles driven)
Deliveries (number of deliveries)
Customer service (number of phone calls)
How much cost would be assigned from the Travel activity to Customer A?
Multiple Choice
$170
$60
$680
340
15
20
Chapter 1 Solutions
Managerial Accounting
Ch. 1 - Prob. 1QCh. 1 - Define the following: (a) direct materials, (b)...Ch. 1 - Explain the difference between a product cost and...Ch. 1 - Distinguish between (a) a variable cost, (b) a...Ch. 1 - Prob. 5QCh. 1 - Define the following terms: (a) cost behavior and...Ch. 1 - What is meant by an activity base when dealing...Ch. 1 - Prob. 8QCh. 1 - Distinguish between discretionary fixed costs and...Ch. 1 - Does the concept of the relevant range apply to...
Ch. 1 - What is the difference between a traditional...Ch. 1 - Prob. 12QCh. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - Prob. 1AECh. 1 - Prob. 2AECh. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L012, L013, L014, L015, L016 Martinez Company’s...Ch. 1 - L01–1, L01–2, L01–3, L01–4, L01–5, L01–6
Martinez...Ch. 1 - L01–1, L01–2, L01–3, L01–4, L01–5, L01–6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - EXERCISE 1—1 Identifying Direct and Indirect Costs...Ch. 1 - EXERCISE 1-2 Classifying Manufacturing Costs LO1-2...Ch. 1 - EXERCISE 1-3 Classifying Costs as Product or...Ch. 1 - EXERCISE 14 Fixed and Variable Cost Behavior LO14...Ch. 1 - Prob. 5ECh. 1 - EXERCISE 1—6 Traditional and Contribution Format...Ch. 1 - Prob. 7ECh. 1 - EXERCISE 18 Product Costs and Period Costs;...Ch. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - EXERCISE 1—11 Cost Behavior; Contribution Format...Ch. 1 - EXERCISE 1-12 Product and Period Cost Flows LO1–3...Ch. 1 - Prob. 13ECh. 1 - EXERCISE 1-14 Cost Classification 1O1–2, LO1–3,...Ch. 1 - Prob. 15ECh. 1 - EXERCISE 1–16 Cost Classifications for Decision...Ch. 1 - EXERCISE 1-17 Classifying Variable and Fixed Costs...Ch. 1 - PROBLEM 1-18 Direct and Indirect Costs; variable...Ch. 1 - PROBLEM 1-19 Traditional and Contribution Format...Ch. 1 - PROBLEM 120 Variable and Fixed Costs; Subtleties...Ch. 1 - Prob. 21PCh. 1 - Prob. 22PCh. 1 - PROBLEM 123 Cost Classification LO11, LO13, LO14...Ch. 1 - PROBLEM 1-24 Different Cost Classifications for...Ch. 1 - Prob. 25PCh. 1 - CASE 1-26 Cost Classification and Cost Behavior...Ch. 1 - Prob. 27C
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