Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 11, Problem 16E
Identification of Relevant Costs
Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill’s friend, John, disapproves of duck hunting, and to discourage Bill from further hunting. John presented him with the following cost estimate per duck:
Required:
1. Assuming the duck hunting trip Bill has just completed is typical, what costs e relevant to a decision as to whether Bill should go duck hunting again this season?
2. Suppose Bill gets lucky on his next hunting trip d shoots 10 ducks using the same amount of shotgun shells he used on his previous hunting trip to bag 8 ducks, How much would it base cost him to shoot the last two ducks Explain
3. Which costs e relevant in a decision of whether Bill should give up bunting? Explain.
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Bill has just returned from a duck hunting trip. He has brought home eight ducks. Bill’s friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John has presented him with the following cost estimate per duck:
1. Assuming that the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season?2. Suppose that Bill gets lucky on his next hunting trip and shoots 10 ducks in the amount of time it took him to shoot 8 ducks on his last trip. How much would it have cost him to shoot the last two ducks if costs are estimated per duck? Explain.3. Which costs are relevant in a decision of whether Bill should give up hunting? Explain.
Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill’s friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck:
Camper and equipment:
Cost, $10,000; usable for eight seasons; 14 hunting trips per season
$ 89
Travel expense (pickup truck):
100 miles at $0.38 per mile (gas, oil, and tires—$0.22 per mile; depreciation and insurance—$0.16 per mile)
38
Shotgun shells (two boxes per hunting trip)
35
Boat:
Cost, $2,320, usable for eight seasons; 14 hunting trips per season
21
Hunting license:
Cost, $50 for the season; 14 hunting trips per season
4
Money lost playing poker:
Loss, $38 (Bill plays poker every weekend whether he goes hunting or stays at home)
38
Bottle of whiskey:
Cost, $20 per hunting trip (used to ward off the cold)
20
Total cost
$ 245
Cost per duck ($245 ÷ 8 ducks)
$ 31
Required:
1. Assuming the duck…
Required:
1. Assuming the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should go
duck hunting again this season?
2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shotgun shells he used on his
previous hunting trip to bag 8 ducks. How much would it have cost him to shoot the last six ducks?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Assuming the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill
should go duck hunting again this season?
Total
Chapter 11 Solutions
Introduction To Managerial Accounting
Ch. 11 - What is a relevant cost?Ch. 11 - Define the following terms: incremental cost,...Ch. 11 - Are variable costs always relevant costs? Explain.Ch. 11 - Prob. 4QCh. 11 - “Variable costs and differential costs mean the...Ch. 11 - Prob. 6QCh. 11 - Prentice Company is considering dropping one of...Ch. 11 - Prob. 8QCh. 11 - What is the danger in allocating common fixed...Ch. 11 - Prob. 10Q
Ch. 11 - Give at least four examples of possible...Ch. 11 - Prob. 12QCh. 11 - Define the following terms: joint products, joint...Ch. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 11 - Prob. 16QCh. 11 - The Excel worksheet form that appears below is to...Ch. 11 - The Excel worksheet form that appears below is to...Ch. 11 - Cane Company manufactures two products called...Ch. 11 - Cane Company manufactures two products called...Ch. 11 - Cane Company manufactures two products called...Ch. 11 - Cane Company manufactures two products called...Ch. 11 - Cane Company manufactures two products called...Ch. 11 - Cane Company manufactures two products called...Ch. 11 - Cane Company manufactures two products called...Ch. 11 - Cane Company manufactures two products called...Ch. 11 - Prob. 9F15Ch. 11 - Cane Company manufactures two products called...Ch. 11 - Cane Company manufactures two products called...Ch. 11 - Cane Company manufactures two products called...Ch. 11 - Prob. 13F15Ch. 11 - Prob. 14F15Ch. 11 - Cane Company manufactures two products called...Ch. 11 - Identifying Relevant Costs Syahn, AB, is a Swedish...Ch. 11 - Prob. 2ECh. 11 - Make or Buy Decision Troy Engines, Ltd,...Ch. 11 - Special Order Decision Imperial Jewelers...Ch. 11 - Volume Trade-off Decisions Outdoor Luggage, Inc.,...Ch. 11 - Prob. 6ECh. 11 - Sell or Process Further Decisions Dorsey Company...Ch. 11 - Volume Trade-Off Decisions Barlow Company...Ch. 11 - Special Order Decision Delta Company produces a...Ch. 11 - Make or Buy Decision Futura Company purchases the...Ch. 11 - Make or Buy Decision Han Products manufactures...Ch. 11 - Volume Trade-Off Decisions Benoit Company produces...Ch. 11 - Prob. 13ECh. 11 - Identification of Relevant Costs Kristen Lu...Ch. 11 - Prob. 15ECh. 11 - Identification of Relevant Costs Bill has just...Ch. 11 - Prob. 17ECh. 11 - Prob. 18PCh. 11 - Dropping or Retaining a Segment Jackson Count...Ch. 11 - Sell or Process Further Decision (Prepared from a...Ch. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Make or Buy Decision Silven Industries, which...Ch. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Close or Retain a Store Superior Markets. Inc.,...Ch. 11 - Sell or Process Further Decisions Come-Clean...Ch. 11 - Make or Buy Decisions “In my opinion, we ought to...
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- Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $14,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.49 per mile (gas, oil, and tires-$0.30 per mile; depreciation and insurance-$0.19 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,560, usable for eight seasons; 14 hunting trips per season Hunting license: Cost, $30 for the season; 14 hunting trips per season Money lost playing poker: Loss, $38 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $15 per hunting trip (used to ward off the cold) Total cost Cost per duck ($272 + 8 ducks) Complete this question by entering your answers in the tabs below. Required 1 Required 2 49 20 23 2 38 15 $ 272 $34arrow_forwardBill has just returned from a duck hunting trip. He brought home eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck Camper and equipment: Cost, $17,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.49 per mile (gas, oil, and tires-50.30 per mile; depreciation and insurance-$0.19 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,400, usable for eight seasons; 14 hunting trips per season. Hunting license: Cost, $60 for the season; 14 hunting trips per season Money lost playing poker: Loss, $30 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $10 per hunting trip (used to ward off the cold). Total cost Cost per duck ($291 +8 ducks) $ 152 49 25 21 4 30 18 $291 $.36 k Required: 1. Assuming the duck hunting trip Bill has just completed is typical, what…arrow_forwardBill has just returned from a duck hunting trip. He brought home eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $11,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.38 per mile (gas, oil, and tires-$8.26 per mile; depreciation and insurance-50.12 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,080, usable for eight seasons; 14 hunting trips per season Hunting License: Cost, $40 for the season; 14 hunting trips per season Money lost playing poker: Loss, $36 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $15 per hunting trip (used to ward off the cold) Total cost Cost per duck ($244 + 8 ducks) Complete this question by entering your answers in the tabs below. Camper and equipment Travel expense Shotgun shells…arrow_forward
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