Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 11, Problem 24P
a)
To determine
Determine the average cost of sales per unit
To determine
Whether the cost of booth space is fixed or variable cost
b)
To determine
Determine the price for the sales volume of 200, 250, 300,350 or 400 units.
c)
To determine
Determine the total cost of booth space
To determine
Whether the cost of booth space is fixed or variable relative to the number of shows attended.
d)
To determine
Determine the additional cost per unit sold
To determine
Whether the cost is fixed or variable
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Problem 1. Mahinahon Company would like to institute an activity-based costing system to price products. The company's Purchasing Department incurs costs of P550,000 per year and has six employees.
Purchasing has determined the three major activities that occur during the year.
Activity
Allocation
Measure
# of People
Total Cost
Issuing purchase orders
# of purchase orders
1
P285,000
Reviewing receiving reports
# of receiving reports
2
P190,000
Making phone calls
# of phone calls
3
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During the year, 50,000 phone calls were made in the department; 15,000 purchase orders were issued;
and 10,000 shipments were received. Product A required 200 phone calls, 150 receiving reports, and
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orders.
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Problem 2-45
Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the Cost Classifications
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Exercise 2 (Cost Estimation; Account Classification)
Black's Compact Disk Store expanded the size of its store in Mandaluyong
City, two months ago. The owner. Manuel Black, has asked you to analyze
the cost structure in his store, as a basis for assessing the profitability of his
business. He provides you with account data for the most recent month,
wnch he explains is representative of what these costs are in most months of
the year; there is not much seasonality in his business. Last month 8,900
compact disks were sold.
Атоunt
Ассоunt
Salespersons' wages
Compact disk purchases
Rent
P17,800
66,750
10,250
400
Depreciation
Shopping bags
Insurance
180
750
Advertising
Utilities
Black's salary
650
1,250
18,500
Chapter 11 Solutions
Survey Of Accounting
Ch. 11 - 1.Define fixed cost and variable cost and give an...Ch. 11 - Prob. 2QCh. 11 - 3.Define the term operating leverage and explain...Ch. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - 6.If volume is increasing, would a company benefit...Ch. 11 - Explain the risk and rewards to a company that...Ch. 11 - 9.Are companies with predominately fixed cost...Ch. 11 - 10.How is the relevant range of activity related...Ch. 11 - Which cost structure has the greater risk?...
Ch. 11 - 14.The president of Bright Corporation tells you...Ch. 11 - Prob. 12QCh. 11 - Prob. 13QCh. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 11 - Prob. 16QCh. 11 - Prob. 17QCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Exercise 2-4A Determining total variable cost The...Ch. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prepare an income statement using the contribution...Ch. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Prob. 19ECh. 11 - Prob. 20ECh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Problem 2-19A Context-sensitive nature of cost...Ch. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 1ATCCh. 11 - Prob. 2ATCCh. 11 - Prob. 3ATCCh. 11 - Prob. 4ATCCh. 11 - Prob. 5ATC
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