Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 5, Problem 5.1DI
Amanda Company reports the following total costs at two levels of production.
| 5,000 Units | 10,000 Units | |
| Indirect labor | $ 3,000 | $ 6,000 |
| Property taxes | 7,000 | 7,000 |
| Direct labor | 28,000 | 56,000 |
| Direct materials | 22,000 | 44,000 |
| Depreciation | 4,000 | 4,000 |
| Utilities | 5,000 | 8,000 |
| Maintenance | 9,000 | 11,000 |
Classify each cost as variable, fixed, or mixed.
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Amanda Company reports the following total costs at two levels of production.
Classify each cost as variable, fixed, or mixed.
Indirect labor
Property taxes
Direct labor
Direct materials
Depreciation (straight-line)
Utilities
Maintenance
5,000 Units
$3,000
7,000
28,000
22,000
4,000
5,000
9,000
10,000 Units
$6,000
7,000
56,000
44,000
4,000
8,000
11,000
Fixed Cost
Mixed Cost
Variable Cost
According to following information, which of the following is the total cost function in the form of Y = F+V*X ? Number of units produced is 18,000.
Â
Â
 Fixed   Cost Â
 Variable  Cost Â
 Total   Costs Â
Material used in ProductionÂ
  87,000
  40,000
 127,000
Labour used in ProductionÂ
  43,000
  38,500
  81,500
Production Facilities cost
  35,000
  29,500
  64,500
TOTAL COST
 165,000
 108,000
 273,000
Â
Â
Select one:
a.
Y = 275,000+V*108
b.
Y = 108,000+V*165
c.
Y = 165,000+V*6
d.
Y = 167,000+V*6
Helena Company reports the following total costs at two levels of production.
Â
10,000 Units
20,000 Units
Direct materials
$20,000
$40,000
Maintenance
8,000
10,000
Direct labor
17,000
34,000
Indirect materials
1,000
2,000
Depreciation
4,000
4,000
Utilities
3,000
5,000
Rent
6,000
6,000
Classify each cost as variable, fixed, or mixed.
Recall that a variable cost varies in total directly and proportionately with each change in activity level.
Recall that a fixed cost remains the same in total with each change in activity level.
Recall that a mixed cost changes in total but not proportionately with each change in activity level.
Chapter 5 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 5 - (a) What is cost behavior analysis? (b) Why is...Ch. 5 - (a) Scott Winter asks your help in understanding...Ch. 5 - Contrast the effects of changes in the activity...Ch. 5 - J. P. Alexander claims that the relevant range...Ch. 5 - The relevant range is indispensable in cost...Ch. 5 - Prob. 6QCh. 5 - How should mixed costs be classified in CVP...Ch. 5 - At the high and low levels of activity during the...Ch. 5 - "Cost-volume-profit (CVP) analysis is based...Ch. 5 - Faye Dunn defines contribution margin as the...
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 14QCh. 5 - Define the term margin of safety. If Revere...Ch. 5 - Prob. 16QCh. 5 - Prob. 17QCh. 5 - Monthly production costs in Dilts Company for two...Ch. 5 - Prob. 5.2BECh. 5 - For Wesland Company, a mixed cost is 15,000 plus...Ch. 5 - Bruno Company accumulates the following data...Ch. 5 - Markowis Corp. has collected the following data...Ch. 5 - Determine the missing amounts.Ch. 5 - Russell Inc. had sales of 2,20O,0O0 for the first...Ch. 5 - Rice Company has a unit selling price of 520,...Ch. 5 - Presto Corp. had total variable costs of 180,000....Ch. 5 - For Flynn Company, variable costs are 70% of...Ch. 5 - Prob. 5.11BECh. 5 - Prob. 5.12BECh. 5 - Amanda Company reports the following total costs...Ch. 5 - Westerville Company accumulates the following data...Ch. 5 - Prob. 5.3DICh. 5 - Snow Cap Company has a unit selling price of 250,...Ch. 5 - Presto Company makes radios that sell for 30 each....Ch. 5 - Bonita Company manufactures a single product....Ch. 5 - Shingle Enterprises is considering manufacturing a...Ch. 5 - The controller of Norton Industries has collected...Ch. 5 - Family Furniture Corporation incurred the...Ch. 5 - The controller of Hall industries has collected...Ch. 5 - PCB Corporation manufactures a single product....Ch. 5 - Marty Moser wants Moser Company to use CVP...Ch. 5 - All That Blooms provides environmentally friendly...Ch. 5 - The Palmer Acres Inn is trying to determine its...Ch. 5 - In the month of March, Style Salon services 560...Ch. 5 - Spencer Kars provides shuttle service between four...Ch. 5 - In 2016. Manhoff Company had a break-even point of...Ch. 5 - Billings Company has the following information...Ch. 5 - Naylor Company had 210,000 of net income in 2016...Ch. 5 - Yams Company reports the following operating...Ch. 5 - Glacial Company estimates that variable costs will...Ch. 5 - Felde Bucket Co., a manufacturer of rain barrels,...Ch. 5 - Vin Diesel owns the Fredonia Barber Shop. He...Ch. 5 - Jorge Company bottles and distributes B-Lite, a...Ch. 5 - Tanek Corp.'s sales slumped badly in 2017. For the...Ch. 5 - Mary Willis is the advertising manager for Bargain...Ch. 5 - Prob. 5.5APCh. 5 - Kaiser Industries carries no inventories. Its...Ch. 5 - Bill Johnson, sales manager, and Diane Buswell,...Ch. 5 - Creative Ideas Company has decided to introduce a...Ch. 5 - The condensed income statement for the Peri and...Ch. 5 - Prob. 5.3BYPCh. 5 - Prob. 5.4BYPCh. 5 - Your roommate asks for your help on the following...Ch. 5 - Prob. 5.6BYPCh. 5 - Cost-volume-profit analysis can also be used in...
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