Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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Textbook Question
Chapter 9, Problem 6F15
Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below:
When preparing its planning budget the company estimated that it would serve 30 customers per month: however, during May the company actually served 35 customers.
Required (all computations pertain to the month of May):
6. What is Adger’s revenue variance?
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Renton company is reviewing the results of its production during the most recent fiscal year. Due to seasonality of the bussiness, the volume of production flactuates during the year. Renton would like to analyze the fixed and variable costs for purposes of estimating the budget for upcoming fiscal year. The cost accountant provided the following data:
Units produce
total costs
January
1,100
12,530
February
1,200
13,260
March
1,400
14,720
April
1,500
15,450
May
1,800
17,640
June
2,100
19,830
July
2,000
19,100
August
1,900
18,370
September
1,400
14,720
October
1,500
15,450
November
1,300
13,990
December
1,700
16,910
Total
18,900
191,170
Required: Calculate the variable cost per unit and the total fixed cost using the following:
a. High and low point method
b. Average method (compare the two lowest quarters)
c. Graphical method
d. Method of least squares
Reton Company is reviewing the results of itts production during tthe most recent fiscal year. Due to seasonality of the business, the volume of production fluctuates during the year. Renton would like to analyze the fixed and variable costs for purposes of estimating the budget for the upcoming fiscal year. The cost accountant provided the following data:
UNITS PRODUCED
TOTAL COST
January
1,100
₱12,530
February
1,200
13,260
March
1,400
14,720
April
1,500
15,450
May
1,800
17,640
June
2,100
19,830
July
2,000
19,100
August
1,900
18,370
September
1,400
14,720
October
1,500
15,450
November
1,300
13,990
December
1,700
16,910
TOTAL
18,900
191,970
Required: Calculate the variable cost per unit and the total fixed cost using the following:
Average method (compare the two lowest quarters)
Graphical method
Method of least squares
Reton Company is reviewing the results of itts production during tthe most recent fiscal year. Due to seasonality of the business, the volume of production fluctuates during the year. Renton would like to analyze the fixed and variable costs for purposes of estimating the budget for the upcoming fiscal year. The cost accountant provided the following data:
UNITS PRODUCED
TOTAL COST
January
1,100
₱12,530
February
1,200
13,260
March
1,400
14,720
April
1,500
15,450
May
1,800
17,640
June
2,100
19,830
July
2,000
19,100
August
1,900
18,370
September
1,400
14,720
October
1,500
15,450
November
1,300
13,990
December
1,700
16,910
TOTAL
18,900
191,970
Calculate the variable cost per unit and the total fixed cost using the Graphical method.
Chapter 9 Solutions
Managerial Accounting
Ch. 9 - Prob. 1QCh. 9 - What is a flexible budget and how does it differ...Ch. 9 - Prob. 3QCh. 9 - Why is it difficult to interpret a difference...Ch. 9 - What is an activity variance and what does it...Ch. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - Prob. 9QCh. 9 - Prob. 10Q
Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 2F15Ch. 9 - Prob. 3F15Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 -
L09-1, LO9-2, LO9-3
Adger Corporation is a...Ch. 9 - Prob. 8F15Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 10F15Ch. 9 - Prob. 11F15Ch. 9 - Prob. 12F15Ch. 9 - Prob. 13F15Ch. 9 - Prob. 14F15Ch. 9 - Prob. 15F15Ch. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 -
EXERCISE 9-3 Revenue and Spending Variances...Ch. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Prob. 15ECh. 9 - Prob. 16ECh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24CCh. 9 - Prob. 25CCh. 9 - Prob. 26C
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