1.
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.
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.
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.
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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Chapter 2A Solutions
MANAG ACCT F/MGRS-CONNECT+PROCTORIO PLUS
- Q. 8 Which following costs need to be considered for both make or buy options? O. Fixed overhead O. Variable overhead O. Rental revenue Q. 9 What is the per unit cost to purchase from the vendor? Round to the nearest penny. Q. 10 Based on your analysis, the CreativeStationary Co. should make the product in-house or buy them from the vender? O. Make O. Buy Do (Q8,9,10 plz)arrow_forwardQuestion 2 A company has recorded the following data in the two most recent periods. Total costs of production Volume of ($) 20tonim (Units) 13,500 700 18,300 1,100 What is the best estimate of the company's fixed costs per period? Answerarrow_forwardCost Accounting Need Help with question 1. Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided for Patterson Company for its most recent year of operations. Expected Consumption Ratios Activity Driver Quantity Wafer A Wafer B 7. Inserting dies Number of dies 2,000,000 0.70 0.30 8. Purchasing materials Number of purchase orders 2,500 0.20 0.80 1. Developing test programs Engineering hours 10,000 0.25 0.75 3. Testing products Test hours 20,000 0.60 0.40 ABC assignments $1,500,000 $1,500,000 Total overhead cost…arrow_forward
- 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.arrow_forwardQuestion 2 (L03) Yates Corp. wants to develop a cost equation for its administrative costs. The controller believes the appropriate cost driver is units produced. Last year's data are presented below: Month January February March April May June July August September October November December Total Average Units produced 32,500 37,700 24,700 40,300 49,400 42,900 53,300 45,500 26,000 48,100 61,100 54,600 516,100 43,008 Administrative Costs $24,288 27,720 17,820 30,360 37,290 29,040 32,670 30,030 20,460 34,320 40,920 36,630 $361.548 $30,129 Required: (a.) What is the equation for administrative costs using the high-low method? (b.) Prepare an estimate of administrative costs for a month when 30,000 units are produced.arrow_forwardCustomers as a Cost ObjectMorrisom National Bank has requested an analysis of checking account profitability by customer type. Customers are categorized according to the size of their account: low balances, mediumbalances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Required:(Note: Round answers to two decimal places.)1. Calculate a cost per account per year by dividing the total cost of processing andmaintaining checking accounts by the total number of accounts. What is the average feeper month that the bank should charge to cover the costs incurred because of checkingaccounts?2. Calculate a cost per account by customer category by using activity rates.3. Currently, the bank offers free checking to all of its customers. The interest revenuesaverage $90 per account; however, the interest revenues earned per account by categoryare $80, $100, and $165 for the low-, medium-, and high-balance…arrow_forward
- High-Low Method; Contribution Format Income Statement Milden Company is a distributor who wants to start using a contribution format income statement for planning purposes. The company has analyzed its expenses and developed the following cost formulas: Because shipping expense is a mixed cost, the company needs to estimate the variable shipping expense per unit sold and the fixed shipping expense per quarter using the following data: Required: 1. Using the high-low method, estimate a cost formula for shipping expense in the form Y = a + bX. 2. In the first quarter of Year 3, the company plans to sell 12,000 units at a selling price of $ 100 per unit. Prepare a contribution format income statement for the quarter.arrow_forwardSolve the problem. Given the revenue and cost functions R-34x - 0.3x2 and C-S+ 14, where x is the daily production, find the rate of change of profit with respect to time when 20 units are produced and the rate of change of production is 5 units per day. $127.00 per day $70.00 per day $110.00 per day O $118.00 per dayarrow_forwardAssume the local DHL delivery service hub has the following information available about fleet miles and operating costs: Year Miles Operating Costs 2012 556,000 $182,000 2013 684,000 214,000 Use the high-low method to develop a cost-estimating equation for total annual operating costs. (Let X = annual fleet miles.) Total annual costs = $0 +$ 0arrow_forward
- Units sold Price Sales Variable manufacturing costs Fixed manufacturing costs Variable selling costs Fixed administrative costs Margin of safety Margin of safety ratio 1,000 $ 10 $ 10,000 4,000 Required: Using the data provided, compute the margin of safety and margin of safety ratio. % 2,000 1,000 1,000arrow_forward(1).pdf 1/1 100% The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Level of Activity (Units Produced) Month Total Production Costs July $230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5.800 December 330,000 5,500 January 200,000 2,900 February 210,000 3.300 March 240,000 3.600 Аpril 380,000 .5.900 Мay 350,000 5,600 June 290,000 5,000arrow_forwardConsider a company facing a demand pattern and costs as follows: Sequential Requirements Number (units) 1 20 2 40 3 110 4 120 60 30 20 30 80 120 130 40 800 Month January February March April May June July August September October November December At ht 5 6 7 8 9 10 11 12 Total $25.00 $ 0.20 a. Construct a replenishment schedule and calculate the associated costs using the Lot for Lot method. b. Repeat using the Fixed Economic Order Quantity method. c. Repeat using the Periodic Order Quantity method. d. Repeat using the Wagner-Whitin Algorithm. (Note: Students are required to solve thisarrow_forward
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