Variable cost: Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost. Fixed cost: Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc. Mixed cost: Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced. Requirement 1 To identify: The type of cost and the cost per unit.

Question

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Answer 1

Question

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

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Write a linear cost function equation for each of the following conditions. Use y for estimated costsand X for activity of the cost driver.a. Direct materials cost is $2.70 per pound b. Total cost is fixed at $800 per month regardless of the number of units produced. c. Auto rental has a fixed fee of $90.00 per day plus $1.75 per mile driven. d. Machine operating costs include $1,000 of maintenance per month, and $15.00 of coolant usagecosts for each day the machinery is in operation.

Java Joe coffees wants to find an equation to estimate monthly utility costs. Java Joe's has been in business for one year and has collected the following cost data for utilities 1.which of the preceding costs is variable? Fixed? Mixed? Explain 2. using the high-low method, determine the cost function for each cost 3. combine the preceding information to get a monthly utility cost function for Java 4. next month, Java's expects to use 2200 kilowatt hours of electricity, make 1500 minutes of telephone calls and use 32000 gallons of water. Estimate total cost of utilities for the month Month Electricity bill Kilowatt hours used telefone telefone min used Water bill Gallonsof water used January $360 1200 $92.00 1100 $60 30560 February $420 1400 $91.80 1060 $60 26800 March $549 1830 $94.80 1240 $60 31450 April $405 1350 $89.60 980 $60 29965 May $588 1960 $98.00 1400 $60 30568 June $624 2080…

Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0-1,900 units, and monthly production costs for the production of 1,600 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Suppose it sells each birdbath for $24. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units.

Answer 2

Question

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

Answer 6

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

Answer 7

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

Answer 8

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

Answer 9

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

Answer 10

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

Answer 11

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

Answer 12

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

Answer 13

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 5 - Define each of the following terms variable cost,...Ch. 5 - Prob. 2Q Ch. 5 - Prob. 3Q Ch. 5 - Prob. 4Q Ch. 5 - Prob. 5Q Ch. 5 - Describe the three methods used to estimate cost...Ch. 5 - Prob. 7Q Ch. 5 - Prob. 8Q Ch. 5 - Prob. 9Q Ch. 5 - Prob. 10Q

Solution Summary: The author identifies the different types of costs and per unit cost. Variable costs vary with the level of production and are directly related to the production volume.

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