Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 11, Problem 5E
a)
To determine
Rental cost per unit and utilities cost per unit for the months of March and April.
b)
To determine
Identify which cost is variable and fixed cost
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High-Low Method
The manufacturing costs of Kellam Industries for the first three months of the year follow:
Total Costs
Units Produced
January
$425,700
2,365
units
February
565,710
4,420
March
662,200
6,665
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.
a. Variable cost per unit
$fill in the blank 1
b. Total fixed cost
$fill in the blank 2
Kirby Fasteners supplies the electronics industry with accessories for cases, disc enclosures, and so on. Below are the costs and
volumes for the past six months at its Plant number 6:
Kirby Fasteners
Plant Number 6
January to June Results
Volume
(Units)
11,100
10,040
13,370
13,900
11,900
11,680
Required:
a. Use the high-low method to estimate the monthly fixed cost of production and the variable cost of production per unit.
b. Kirby analysts forecast a production level of 12,100 units in July. Based on the results from requirement (a), what would be the
estimated production costs in July?
Total Cost
$ 196,900
187,795
222,400
235,080
214,555
211, 212
Complete this question by entering your answers in the tabs below.
Required A
Variable cost
Fixed cost
Required B
Use the high-low method to estimate the monthly fixed cost of production and the variable cost of production per unit. (Round
"Variable cost" answer to 2 decimal places.)
High-Low Method
The manufacturing costs of Rosenthal Industries for the first three months of the year follow:
January
February
March
Total Costs
Production
$215,280
1,265 units
264,080
2,130
334,880
3,565
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.
a. Variable cost per unit
b. Total fixed cost
SA
LA
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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