Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Chapter 12, Problem 12.17P
Problem 12.17
LO 6
High-low method A department of Alpha Co. incurred the following costs for the month of September. Variable costs, and the variable portion of mixed costs, are a function of the number of units of activity:
| Activity level in units | 5,000 |
| Variable costs | $10,000 |
| Fixed costs | 30,000 |
| Mixed costs | 20.000 |
| Total costs | $60,000 |
During October the activity level was 8,000 units, and the total costs incurred were $70,500.
Required:
- Calculate the variable costs, fixed costs, and mixed costs incurred during October.
- Use the high-low method to calculate the cost formula for mixed cost.
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Students have asked these similar questions
15# Exercise 6-7 (Algo) Income reporting under
absorption costing and variable costing LO P2
Sims Company began operations on January 1. Its cost
and sales information for this year follow.
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Units produced
Units sold
Sales price
$ 30
$ 50
$ 20
$8,800,000
$11
$4,250,000
110,000
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$360
per unit
per unit
per unit
per year
per unit
per year
units
units
per unit
1. Prepare an income statement for the year using
variable costing.
2. Prepare an income statement for the year using
absorption costing.
A department of Delta Company incurred the following costs for the month of June. Variable costs, and the variable portion of mixed
costs, are a function of the number of units of activity:
Activity level in units
Variable costs
Fixed costs
Mixed costs
Total costs
4,000
$ 8,200
32,000
15,940
$56,140
During July, the activity level was 9.200 units, and the total costs incurred were $68.500.
Required:
a. Calculate the variable costs, fixed costs, and mixed costs incurred during July
b. Use the high-low method to calculate the cost formula for mixed cost.
Complete this question by entering your answers in the tabs below.
Required A Required B
Calculate the variable costs, fixed costs, and mixed costs incurred during July.
July
Variable cost
Fixed cost
Mixed cost
D
Q # 8
The estimated unit costs for a company operating at a production and sales level of 12,000 units are as follows:
Cost Item
Estimated Unit Cost (Rs.)
Direct materials
32
Direct Labor
20
Variable factory overhead
15
Fixed factory overhead
6
Variable marketing
3
Fixed marketing
4
Required
Identify the estimated conversion cost per unit.
Identify the estimated prime cost per unit.
Determine the estimated total variable cost per unit
Compute the total cost that would be incurred during a month with a production level of 12,000 units and a sales level of 8,000 units.
Chapter 12 Solutions
Accounting: What the Numbers Mean
Ch. 12 - Prob. 12.1MECh. 12 - Prob. 12.2MECh. 12 - Prob. 12.3MECh. 12 - Prob. 12.4MECh. 12 - Prob. 12.5MECh. 12 - Prob. 12.6MECh. 12 - Exercise 12.7 LO 3 Cost classifications For each...Ch. 12 - Exercise 12.8 LO 3 Cost classifications For each...Ch. 12 - Prob. 12.9ECh. 12 - Prob. 12.10E
Ch. 12 - Prob. 12.11ECh. 12 - Prob. 12.12ECh. 12 - Prob. 12.13ECh. 12 - Prob. 12.14ECh. 12 - Exercise 12.15
LO 8, 9
Special promotion—effects...Ch. 12 - Prob. 12.16ECh. 12 - Problem 12.17 LO 6 High-low method A department of...Ch. 12 - Problem 12.18
LO 6
High-low method—missing amounts...Ch. 12 - Prob. 12.19PCh. 12 - Prob. 12.20PCh. 12 - Prob. 12.21PCh. 12 - Prob. 12.22PCh. 12 - Prob. 12.23PCh. 12 - Prob. 12.24PCh. 12 - Prob. 12.25PCh. 12 - Problem 12.26 LO 8. 9, 10, 11 CYP...Ch. 12 - Prob. 12.27PCh. 12 - Prob. 12.28PCh. 12 - Prob. 12.29CCh. 12 - Prob. 12.30CCh. 12 - Prob. 12.31CCh. 12 - Case 12.32 LO 12 Understanding the effects of...Ch. 12 - Prob. 12.33C
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