Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. Units Produced Total Lumber Cost Total Utilities Cost Total Machine Depreciation Cost 11,000 shelves $121,000 $14,650 $140,000 22,000 shelves 242,000 27,300 140,000 44,000 shelves 484,000 52,600 140,000 55,000 shelves 605,000 65,250 140,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Utilities Depreciation 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places. Cost Fixed Portion of Cost Variable Portion of Cost (per Unit) Lumber $fill in the blank 395e9c037fc2033_4 $fill in the blank 395e9c037fc2033_5 Utilities fill in the blank 395e9c037fc2033_6 fill in the blank 395e9c037fc2033_7 Depreciation fill in the blank 395e9c037fc2033_8 fill in the blank 395e9c037fc2033_9
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Question Content Area
Cost Behavior
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow.
Units Produced |
Total Lumber Cost |
Total Utilities Cost |
Total Machine Cost |
| 11,000 shelves | $121,000 | $14,650 | $140,000 |
| 22,000 shelves | 242,000 | 27,300 | 140,000 |
| 44,000 shelves | 484,000 | 52,600 | 140,000 |
| 55,000 shelves | 605,000 | 65,250 | 140,000 |
1. Determine whether the costs in the table are variable, fixed, mixed, or none of these.
| Lumber |
|
| Utilities |
|
| Depreciation |
|
2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places.
Cost |
Fixed Portion of Cost |
Variable Portion of Cost (per Unit) |
| Lumber | $fill in the blank 395e9c037fc2033_4 | $fill in the blank 395e9c037fc2033_5 |
| Utilities | fill in the blank 395e9c037fc2033_6 | fill in the blank 395e9c037fc2033_7 |
| Depreciation | fill in the blank 395e9c037fc2033_8 | fill in the blank 395e9c037fc2033_9 |
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