Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,070 15,158 April 2,688 10,482 May 2,870 12,037 June 3,847 17,906 Oa. $1.09 Ob. $1.56 Oc. $0.16 Od. $1.05
Q: Silver Products has presented the following information for the past eight months operations: Month…
A: There are three forms of cost : 1. Variable cost 2. Fixed cost 3. Semi-variable cost The high-low…
Q: Using the high-low method, the utilities cost associated with 980 machine 1 point hours would be:…
A: Compute the variable cost per machine hour: Variable cost per machine hour=Utilities during…
Q: The following analysis of selected data is for each of the two services Gates Corporation provides.…
A: Contribution margin: Contribution margin is the difference between the revenue and the variable…
Q: Given the following cost and activity observations for Bounty Company's utilities, use the high-low…
A: Unit Cost Highest Point June 17,550 3,767 Lowest Point April 10,257 2,674…
Q: Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: For each total fixed cost listed below determine the fixed cost per unit when sales are 35, 70, and…
A: Fixed cost in total is constant but fixed cost per unit will decrease when production volume…
Q: Given the folloviing cost and activity observations for Smithson Company's utilities, use the…
A: j
Q: Crane Corp. has collected the following data concerning its maintenance costs for the past 6 months.…
A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…
Q: Hot'lanta, Inc, which uses the high-low method to analyze cost behavior, has determined that machine…
A: When some cost is showing combined effect of variable and fixed cost i.e. it is semi variable and…
Q: Anu’s Amusement Center has collected the following data for operations for the year. Total…
A: a.Average selling price for a ticket = $ 32 b.Average variable cost per ticket = $18 c.Average…
Q: 200 400 700 Contribution Margin P200 P300 P40
A: Given: The data is given as,
Q: The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost…
A: Unit Cost Highest Point June 3,170 100,106 Lowest Point April 1,560 97,208…
Q: 11) Barkotf Enterprises, which uses the high-low method to analyze cost behav determined that…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: 1) Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that…
A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…
Q: Given the following cost and activity observations for Leno Enterprises' utilities, use the high-low…
A: Variable cost per Machine Hours= (Highest activity cost - Lowest activity cost) / (Highest Machine…
Q: Shock Company manufactures computer monitors. The following is a summary of its basic cost and…
A: Total Contribution margin = $223 x 590 = $131,570 Net income = $131,570 - $79,800 = $51,770
Q: 8.Given the following cost and activity observations for Bounty Company's utilities, use the…
A: Fixed costs: These are costs which are incurred irrespective of the production or sale activities.…
Q: Given the following cost and activity observations for Johnson Company's utilities, use the high-low…
A: Introduction:- High-low method is one of the technique that is used to separate fixed and variable…
Q: Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $125;…
A: The contribution margin is the percentage of total contribution to total sales amount. Contribution…
Q: Given the following cost and activity observations for Smithson Company's utilities, use the…
A: Formula to calculate fixed cost under high-low method High cost - Low cost / High hours - Low hours
Q: CoastalFast is a commuter train company. On regional route SUN, CoastalFastcurrently charges $8 per…
A: Since the requirements in question are not numbered. In case of multiple parts only first 3 shall…
Q: Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $80;…
A: Total variable costs = direct materials + direct labor + manufacturing overhead selling costs…
Q: electricity cost
A: High-low method refers to the method which is used for splitting the semi-fixed or variable cost…
Q: CLASS ACTIVITY:CASE PROBLEM The Overland Company wants to develop a cost estimating equation for its…
A: The high low method is used to separate the fixed and variable costs from the mixed costs of the…
Q: Given the following cost and activity observations for Smithson Company’s utilities, use the…
A:
Q: The controller of Hall Industries has collected the following monthly expense data for use in…
A: A variable cost is a business expense that varies with how much a company produces or sells.…
Q: Hot'lanta, Inc., which uses the high-low method to analyze cost behavior, has determined that…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: The manufacturing costs of Mocha Industries for three months of the year are as follows: Total…
A: High - low method is used to divide variable cost and fixed cost from the limited data available on…
Q: Given the following cost and activity observations for Bounty Company's utilities, use the high-low…
A: Solution Given Cost Machine Hours March $3,100 15,000 April 2,700…
Q: Grease Company makes three products. Following are the revenue and cost data for a typical month.…
A: A Break-even point is a point or number of units where all the revenues generated by the company are…
Q: Emeka Company has provided the following information: Sales price per unit Variable cost per unit…
A: The term Contribution is considered under the Cost volume Profit method. Contribution means that the…
Q: Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $125;…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
Q: Given the following cost and activity observations for George Company’s utilities, use the high-low…
A: Variable utilities cost per machine hour=Highest activity cost-Lowest activity costHighest machine…
Q: The following information is available for a company's utility cost for operating its machines over…
A: High-low method: In the high-low method, the semi variable-cost approximation is calculated by using…
Q: Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $125;…
A: A ratio that provides information regarding the amount that is available to cover the fixed of the…
Q: Java Joe coffees wants to find an equation to estimate monthly utility costs. Java Joe's has been in…
A: The total cost of any production may includes different costs which may be variable, fixed or mixed…
Q: Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: Hilby, Inc., uses the high-low method to analyze cost behavior. The company observed that at 12,000…
A: High-Low Method: The high-low method helps in separating Fixed and variable costs from the total…
Q: A manufacturing company supplies 6645 products to construction job sites. The average monthly fixed…
A: Break-even point is the point which lets the company know how much units or revenue must be earned…
Q: Given the following cost and activity observations for Bounty Company's utilities, use the high-low…
A: Variable utilities cost per machine =Difference in costDifference in machine hours=3587 -265917811…
Q: Using the line of best fit determine the company's fixed cost per month and the variable cost per…
A: Line of best fit equation is used in the regression analysis while computing the fixed cost element…
Q: Hot'lanta, Inc., which uses the high-low method to analyze cost behavior, has determined that…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places,…
A: High low method is a method which takes into account cost at highest level of activity and cost at…
Q: Given the following cost and activity observations for Bounty Company's utilities, use the high-low…
A: High low method is a method of cost estimation under which costs at highest level of activity and…
Q: Given the following cost and activity observations for Smithson Company's utilities, use the…
A: Given that, Highest activity (machine hours) = 29,000 Lowest activity (machine hours) = 20,000…
Q: tioBear Publishing sells a nature guide. The following information was reported for a typical month:…
A: Break even point - It is a Level of sales where company will have No Profit and No Loss. Revenue…
Q: The following information is available for a company's utility cost for operating its machines over…
A: It takes into consideration the highest level activities as well as the lowest level of activity and…
Q: Emeka Company has provided the following information: Sales price per unit $58 Variable cost per…
A: Contribution means the difference between the selling price and variable cost . Selling price means…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Overhead: Selling and administrative expenses: Required: 1. Classify each cost element as either variable, fixed, or semi-variable. (Hint: Recall that variable expenses must go up in direct proportion to changes in the volume of activity.) 2. Calculate the break-even point in units and dollars. (Hint: First use the high-low method illustrated in Chapter 4 to separate costs into their fixed and variable components.) 3. Prepare a break-even chart. 4. Prepare a contribution income statement, similar in format to the statement appearing on page 540, assuming sales of 5,000 units. 5. Recompute the break-even point in units, assuming that variable costs increase by 20% and fixed costs are reduced by 50,000.Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?The profit function for two products is: Profit3x12+42x13x22+48x2+700, where x1 represents units of production of product 1, and x2 represents units of production of product 2. Producing one unit of product 1 requires 4 labor-hours, and producing one unit of product 2 requires 6 labor-hours. Currently, 24 labor-hours are available. The cost of labor-hours is already factored into the profit function, but it is possible to schedule overtime at a premium of 5 per hour. a. Formulate an optimization problem that can be used to find the optimal production quantity of products 1 and 2 and the optimal number of overtime hours to schedule. b. Solve the optimization model you formulated in part (a). How much should be produced and how many overtime hours should be scheduled?
- Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results: Required: 1. Using the results from the method of least squares, prepare a cost formula for the receiving activity. 2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? (Note: Round your answer to the nearest dollar.) 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
- Which of the following costs would be classified as variable and which would be classified as fixed, if units produced is the activity base? A. Direct materials costs B. Electricity costs of 0.35 per kilowatt-hourTotal cost method of product pricing Based on the data presented in Exercise 17, assume that Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. A. Determine the total costs and the total cost amount per unit for the production and sale of 10,000 cellular phones. B. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. C. Determine the selling price of cellular phones. (Round markup to the nearest dollar.)Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
- Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable costs are $5 per unit, what are their fixed costs? $240,000 $200,000 $260,000 Their fixed costs cannot be determined from the information presented.The total cost for monthly supervisory cost in a factory is 4,500 regardless of how many hours the supervisor works or the quantity of output achieved. This cost a. is strictly variable. b. is strictly fixed. c. is a mixed cost. d. is a step cost. e. cannot be determined from this information.Scattergraph, High-Low Method, and Predicting Cost for a Different Time Period from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. Required: 1. Prepare a scattergraph based on the 10 months of data. Does the relationship appear to be linear? 2. Using the high-low method, prepare a cost formula for the receiving activity. Using this formula, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated? Use the following information for Problems 3-60 and 3-61: Farnsworth Company has gathered data on its overhead activities and associated costs for the past 10 months. Tracy Heppler, a member of the controllers department, has convinced management that overhead costs can be better estimated and controlled if the fixed and variable components of each overhead activity are known. One such activity is receiving raw materials (unloading incoming goods, counting goods, and inspecting goods), which she believes is driven by the number of receiving orders. Ten months of data have been gathered for the receiving activity and are as follows: