Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter C, Problem 2E
1)
To determine
The
2)
To determine
The total cost/unit for each product line.
3)
To determine
The profit or loss/unit for each model.
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The following data have been extracted from the records of Puzzle Incorporated:
Production level, in units
Variable costs
Fixed costs
Mixed costs
Total costs
Required A Required B
Required:
a. Calculate the missing costs.
b. Calculate the cost formula for mixed cost using the high-low method.
c. Calculate the total cost that would be incurred for the production of 12,880 units.
d. Identify the two key cost behavior assumptions made in the calculation of your answer to part c.
Required C
Production level, in units
Variable costs
Fixed costs
Mixed costs
Total costs
Complete this question by entering your answers in the tabs below.
Calculate the missing costs.
Note: Do not round intermediate calculations.
February
9,200
$ 19,320
?
16,312
$ 71,532
February
9,200
$ 19,320 $
2 X
16,312
$ 71,532
Required D
August
August
20, 240
$?
35,900
?
$ 106,970
Answer is not complete.
20,240
34,255
35,900
52,475
$ 106,970
Using the information calculate the following,1. The manufacturing costs per unit and the total manufacturing costs, if all the overhead costs are absorbed on a machine hour basis.2. The overheads costs per unit using the ABC system
Required:
1. Using the five most expensive activities, calculate the overhead cost assigned to each prod-uct. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities.2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome.3. What if activities 1, 2, 5, and 8 each had a cost of $650,000 and the remaining activities hada cost of $50,000? Calculate the cost assigned to Wafer A by a fully specified ABC systemand then by an approximately relevant ABC approach. Comment on the implications forthe approximately relevant approach.
Chapter C Solutions
Principles of Financial Accounting.
Ch. C - Why are overhead costs allocated to products and...Ch. C - Prob. 2DQCh. C - Prob. 3DQCh. C - What is activity-based costing? What is its goal?Ch. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Identify at least four typical cost pools for...Ch. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 1QSCh. C - Prob. 2QSCh. C - Prob. 3QSCh. C - Prob. 4QSCh. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Prob. 7QSCh. C - Prob. 1ECh. C - Prob. 2ECh. C - Prob. 3ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Maxlon Company manufactures custom-made furniture...Ch. C - Prob. 5APCh. C - Prob. 6APCh. C - SP 1 This serial problem began in Chapter 1 and...
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