Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Chapter 11, Problem 11.1E
Classify costs
Following is a list of various costs incurred in producing and selling college textbooks. With respect to the production and sale of textbooks, classify each cost as either variable, fixed, or mixed.
1. Art commission of $36,000 paid for use of art on textbook cover.
2. Sales commissions paid sales representatives based upon number of textbooks sold.
3. Electricity costs, $0.04 per kilowatt-hour.
4. Hourly wages of operators of printing presses.
5. Janitorial costs, $5,000 per month.
6. Packaging for customized texts and texts shipped with software codes.
7. Paper used in priming the textbooks.
8. Property insurance premiums, $1,800 per month plus $0.05 for each dollar of property over $2,000,000
9. Property taxes, $615,000 per year on factory building and equipment.
10. Rent on warehouse, $12,800 per month plus $2.50 per square foot of storage used.
11. Royalty paid authors for each textbook sold.
12. Salary of plant manager.
13. Sales commission paid lo Amazon.com of $ 100,000 plus $0.50 for each textbook sold online.
14. Straight-line
15. Technology development costs of $1,200,000.
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Rahul
Jake's Roof Repair has provided the following data concerning its costs:
Fixed Coat
Cost per
Repair-Hour
$15.00
97.40
per Month
$21,200
Wagon and salarion
Parts and supplies
Equipment depreciation
Truck operating expensea
Rent
Administrative expenses
$ 2,710
* 5,740
3 4,640
8 3,840
$0.60
9 1.50
8 0.00
For example, wages and salaries should be $21,200 plus $15.00 per repair-hour he company expected to work 2,800 repair-hours in
May, but actually worked 2,700 repair-hours. The company expects its sales to be $53.00 per repair-hour.
Required:
Compute the company's activity variances for May. (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.)
Jake's Roof Repair
Activity Variances
For the Month Ended May 31
Revenue
Expenses:
Wages and salaries
Parts and supplies
Equipment depreciation
Truck operating expenses
Rent
Administrative expenses
Total expense
Net operating…
Chapter 11 Solutions
Survey of Accounting (Accounting I)
Ch. 11 - Which of the following statements describes...Ch. 11 - If sales are $500,000, variable costs are...Ch. 11 - If the unit selling price is $16. the unit...Ch. 11 - Based on the data presented in Question 3, how...Ch. 11 - Prob. 5SEQCh. 11 - Describe how total variable costs and unit...Ch. 11 - How would each of the following costs be...Ch. 11 - Describe the behavior of (a) total fixed costs and...Ch. 11 - How would each of the following costs be...Ch. 11 - In cost analyses, how arc mixed costs treated?
Ch. 11 - Which of the following graphs illustrates how...Ch. 11 - Which of the following graphs illustrates how unit...Ch. 11 - Which of the following graphs best illustrates...Ch. 11 - In applying the high-low method of Cost...Ch. 11 - Prob. 10CDQCh. 11 - Prob. 11CDQCh. 11 - Prob. 12CDQCh. 11 - If insurance rates are increased, what effect will...Ch. 11 - Prob. 14CDQCh. 11 - The reliability of cost-volume-profit (CVP)...Ch. 11 - How does the sales mix affect the calculation of...Ch. 11 - Prob. 17CDQCh. 11 - Classify costs Following is a list of various...Ch. 11 - Identify cost graphs The following cost graphs...Ch. 11 - Prob. 11.3ECh. 11 - Identify activity bases From the following list of...Ch. 11 - Identify fixed and variable costs Intuit Inc....Ch. 11 - Relevant range and fixed and variable costs Third...Ch. 11 - High-low method Liberty Inc. has decided to use...Ch. 11 - High-low method for service company Miss River...Ch. 11 - Contribution margin ratio a. Matzinger Company...Ch. 11 - Contribution margin and contribution margin ratio...Ch. 11 - Break-even sales and sales to realize operating...Ch. 11 - Prob. 11.12ECh. 11 - Prob. 11.13ECh. 11 - Break-even analysis The Garden Club of Palm...Ch. 11 - Break-even analysis Media outlets such as ESPN and...Ch. 11 - Prob. 11.16ECh. 11 - Prob. 11.17ECh. 11 - Prob. 11.18ECh. 11 - Prob. 11.19ECh. 11 - Prob. 11.20ECh. 11 - Break-even sales and sales mix for a service...Ch. 11 - Operating leverage SunRise Inc. and SunSet Inc....Ch. 11 - Classify costs Peak Apparel Co. manufactures a...Ch. 11 - Break-even sales under present and proposed...Ch. 11 - Prob. 11.2.2PCh. 11 - Prob. 11.2.3PCh. 11 - Prob. 11.2.4PCh. 11 - Prob. 11.2.5PCh. 11 - Break-even sales under present and proposed...Ch. 11 - Prob. 11.2.7PCh. 11 - Prob. 11.2.8PCh. 11 - Break-even sales and cost-volume-profit graph For...Ch. 11 - Prob. 11.3.2PCh. 11 - Break-even sales and cost-volume-profit graph For...Ch. 11 - Prob. 11.3.4PCh. 11 - Prob. 11.4.1PCh. 11 - Prob. 11.4.2PCh. 11 - Prob. 11.4.3PCh. 11 - Prob. 11.4.4PCh. 11 - Prob. 11.5.1PCh. 11 - Prob. 11.5.2PCh. 11 - Sales mix and break-even sales Data related to the...Ch. 11 - Prob. 11.5.4PCh. 11 - Prob. 11.5.5PCh. 11 - Contribution margin, break-even sales,...Ch. 11 - Contribution margin, break-even sales,...Ch. 11 - Contribution margin, break-even sales,...Ch. 11 - Contribution margin, break-even sales,...Ch. 11 - Contribution margin, break-even sales,...Ch. 11 - Margin of safety a. If Go-Go Buggies Company, with...Ch. 11 - Prob. 11.2MBACh. 11 - Margin of safety Use the data from E11-12 and...Ch. 11 - Margin of safety Use the data from E11-12 and...Ch. 11 - Sales mix and margin of safety Use the data from...Ch. 11 - Prob. 11.4.2MBACh. 11 - Prob. 11.4.3MBACh. 11 - Margin of safety Using the data from P11-2,...Ch. 11 - Prob. 11.5.2MBACh. 11 - Margin of safety Using the data from P11-6....Ch. 11 - Prob. 11.6.2MBACh. 11 - Prob. 11.6.3MBACh. 11 - Prob. 11.1CCh. 11 - Break-even sales, contribution margin "Every...Ch. 11 - Break-even analysis Aquarius Games Inc. has...Ch. 11 - Variable costs and activity bases in decision...Ch. 11 - Variable costs and activity bases in decision...Ch. 11 - Prob. 11.6C
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