Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month. Variable Cost/tour mile = (12,500 – 11,000)/(20,000 – 8,000) = 1,500 ÷ 12,000 = 0.125 per tour mile Total Cost = $12,500 Total Variable Cost = 0.125 x 20,000 = (2,500) Fixed Cost = 10,000 real […]
Predict the energy cost for a month in which 26,000 pints of applesauce are produced. Y = 0.10X + $20,000 Y = (0.10 x 26,000) + $20,000 = $22,600 Therefore, the energy cost for a month in which 26,000 pints of applesauce are produced is $22,600 Place Your Order Here!
Predict the energy cost for a month in which 26,000 pints of applesauce are produced. Read More »
Activity-Analysis, Cost Behavior, and Cost Estimation: Exercise 6-25 Page 259: 1. Use the high-low method to estimate the company’s energy cost behavior and express it in equation form. The High-low Method: Variable Cost/Pint = (Energy cost @ High level – Energy Cost/Pint @ Low Level) (High Level – Low Level) = (24,100 – 22,100) (41,000
Activity-Analysis, Cost Behavior, and Cost Estimation: Read More »
Explain how the analysis of the selling costs for skeins of knitting yarn is likely to impact future pricing and product decisions at Redwood Company. Selling costs analysis demonstrates that small orders cost more than large orders; which could influence management towards marketing large orders more insistently as well as offering discounts for them. Place
Exercise 5-35 Page 204: 1. Prepare a schedule showing Redwood Company’s total selling cost for each order size and the per-skein selling cost within each order size. Redwood Company Selling Costs Computation by Order Size and Skein within Each Order Size Order Size Small Medium Large Total Sales CommissionsA[Unit Cost: $675,000/225,000 = $3.00
Choose two activities or accounts from each of the four classifications and explain why you agree or disagree with the ABC project team’s classification. Carrier Corporation for each of the activity levels the definitions that include: · Unit: occurs every time a unit is produced. For example utility cost for production equipment. It more often
Exercise 5-33 Page 203 The activities of Finger Lakes Winery can be classified as: U: Unit-level I B: Batch-level I P: Product-sustaining-level F: Facility-level Activity: Classification: (1) P (2) P (3) P (4) P (5) P (6) P (7) P (8) B (9) B (10) B (11) B (12) B (13) U
The activities of Finger Lakes Winery can be classified as: Read More »
Divide these costs into activity cost pools, and identify a cost driver for assigning each pool of costs to products. Calculate the total cost in each activity cost pool. Cost Pool 1: Unit-Level I Raw materials and components 2,950,000 Yen Inspection 30,000 Yen Total Cost 2,980,000 Yen Cost driver for assigning pool 1 is raw-material
Calculate the total cost in each activity cost pool. Read More »
Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality-control costs? By what amount? The traditional product-costing system undercosts Satin Sheen product line with respect to quality-control costs, by $525 = $4,513 – $3,988 Exercise 5-28 Page 202 Place Your Order Here!
Calculate the monthly quality-control cost to be assigned to the Satin Sheen product line under each of the following product-costing systems. (Round to the nearest dollar) a. Traditional system, which assigns overhead on the basis of direct-labor cost Quality-control costs = 14.5% x Direct-labor Costs Quality-control costs assigned to Satin Sheen line = 14.5% x