MANAGERIAL ACCOUNTING F/MGRS.
5th Edition
ISBN: 9781259969485
Author: Noreen
Publisher: RENT MCG
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Chapter 2A, Problem 2A.4E
1.
To determine
Introduction: The high-low method is used to find fixed and variable cost in a limited amount of provided data. It can determine the variable and fixed cost if fixed cost is constant and variable is same on every unit, by system of equation.
To prepare: Scatter-graph of months and total shipping expense.
2.
To determine
Introduction: The high-low method is used to find fixed and variable cost in a limited amount of provided data. It can determine the variable and fixed cost if fixed cost is constant and variable is same on every unit, by system of equation.
To express: The variable and fixed cost in the form of
3.
To determine
Introduction: The high-low method is used to find fixed and variable cost in a limited amount of provided data. It can determine the variable and fixed cost if fixed cost is constant and variable is same on every unit, by system of equation.
To express: The variable and fixed cost in the form of
4.
To determine
Introduction: The high-low method is used to find fixed and variable cost in a limited amount of provided data. It can determine the variable and fixed cost if fixed cost is constant and variable is same on every unit, by system of equation.
To express: The variable and fixed cost in the form of
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QUESTION 2
(a)
Explain the following terms:
(1)
margin of safety
(ii) contribution margin
(b) contribution to sales ratio
(ii)
(iv)
(c) cost behaviour in a linear function
(v) (d) break even analysis
The Income statement for the year ending 31 December 2020 for Hagemaru Manufacturing is as follows:
RM'000
RM'000
Sales (22,000 units)
3,300
Direct materials
726
Direct labour
374
Production overheads
798
(1,898)
Gross profit
1,402
Selling overheads
(1,042)
Net profit
360
The variable production overheads were RM9 per unit while the variable selling
overheads were RM11 per unit.
Required:
(i) Calculate contribution margin per unit.
(i)
(ii)
Calculate breakeven point in units and in RM.
(i)
Calculate margin of safery in units for the latest financial year.
The company has a capacity of 30,000 units per year. Management is not
happy with the financial performance for the last year, and two courses of
(iv)
(v)
(vi)
action for the coming year were proposed in the recent management meeting:…
Evaluating Selected Cost Driver Assume that a manufacturer of specialized machine parts developed the following total cost estimating equation for
manufacturing costs. Y = $14,400 + $1,250 (actual units) a. What is total estimated manufacturing costs if 180 units are produced? $Answer 0
Question #2
Car Suds, Inc. has the following information available for December 2023.
Unit selling price of Car Suds Soap
Unit variable costs
Total fixed costs
Units sold
$12
$8
$3,300
1,365
Required: (a) Prepare in proper form a CVP income statement that shows both
total and per unit amounts. (b) Compute Car Suds breakeven in units and dollars.
(c) Compute the margin of safety for Car Suds.
Chapter 2A Solutions
MANAGERIAL ACCOUNTING F/MGRS.
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