Dngapore. The comp determined that if a truck is driven 105,000 kilometers during a year, the average oper is 11.4 cents per kilometer. If a truck is driven only 70,000 kilometers during a year, the Hong Transport, Ltd., operates a TItt operating cost increases to 13.4 cents per kilometer. Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the a annu the truck operation. Express the variable and fixed costs in the form Y = a + bX. 3. 2. If a truck were driven 80,000 kilometers during a year, what total cost would you enpe incurred? EXERCISE 2-9 Cost Terminology for Manufacturers [L02-2, LO2-3] Arden Company reported the following costs and expenses for the most recent month: $80,000 $42,000 $19,000 $22,000 $35,000 Direct materials Direct labor Manufacturing overhead . . Selling expenses Administrative expenses ... Required: What is the total amount of product costs? 2. What is the total amount of period costs? 3. What is the total amount of conversion costs? 1. 4. What is the total amount of prime costs? L02-6
Dngapore. The comp determined that if a truck is driven 105,000 kilometers during a year, the average oper is 11.4 cents per kilometer. If a truck is driven only 70,000 kilometers during a year, the Hong Transport, Ltd., operates a TItt operating cost increases to 13.4 cents per kilometer. Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the a annu the truck operation. Express the variable and fixed costs in the form Y = a + bX. 3. 2. If a truck were driven 80,000 kilometers during a year, what total cost would you enpe incurred? EXERCISE 2-9 Cost Terminology for Manufacturers [L02-2, LO2-3] Arden Company reported the following costs and expenses for the most recent month: $80,000 $42,000 $19,000 $22,000 $35,000 Direct materials Direct labor Manufacturing overhead . . Selling expenses Administrative expenses ... Required: What is the total amount of product costs? 2. What is the total amount of period costs? 3. What is the total amount of conversion costs? 1. 4. What is the total amount of prime costs? L02-6
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7PB: Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit...
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