In your calculations, round the variable rate per employee hour to thenearest cent. If required, round your final answers to the nearest cent.Required:1. Using the high-low method, calculate the variable rate.15.80✔ per employee hour2. Using the high-low method, calculate the total fixed labor cost.$3. Using the high-low method, construct the cost formula for total labor cost.Total labor cost = $Ixx Employee hours]+ [$Feedback Using High-Low to Calculate the Variable Rate, Calculate Fixed Cost, and Construct aCost FunctionPizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:LaborEmployeeCost ($)HoursJanuary9,490February 7,000March7,531April8,140May9,787June8,490July13,416August 7,500Month560650690520600470770430Pizza Vesuvio's controller wants to calculate the variable and fixed costs associatedwith labor used in the restaurant.

High low method is one of the method used for cost estimation under which variable costs and fixed…

In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the variable rate. 15.80 per employee hour 2. Using the high-low method, calculate the total fixed labor cost. 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost = $ Ixx Employee hours] + [$

In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the variable rate. 15.80 per employee hour 2. Using the high-low method, calculate the total fixed labor cost. 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost = $ Ixx Employee hours] + [$

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 19BEA: Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period That...

See similar textbooks

Similar questions

Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost($) Employee Hours January 9,790 300 February 7,300 350 March 7,831 370 April 8,440 280 May 10,087 320 June 8,790 250 July 10,932 410 August 7,800 230 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the variable rate. $fill in the blank 1 per employee hour 2. Using the high-low method, calculate the fixed cost of labor. $fill in the blank 2 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost = $fill…
Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost($) Employee Hours January 9,490 550 February 7,000 630 March 7,531 670 April 8,140 500 May 9,787 590 June 8,490 460 July 12,872 760 August 7,500 420 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the fixed cost of labor.$________ 2. Using the high-low method, calculate the variable rate.$_________ 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost = $ _______ + ($__________ × Employee hours)
Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost Employee Hours January $7,000 360 February 8,140 550 March 9,899 630 April 9,787 600 May 8,490 480 June 7,450 350 July 9,490 570 August 7,531 310 Coefficients shown by a regression program for Pizza Vesuvio's data are: Intercept 4,497 X Variable 8.26 In your calculations, round the variable rate per employee hour to the nearest cent. Required: Use the results of regression to make the following calculations: 1. Calculate the fixed cost of labor.$fill in the blank 1 Calculate the variable rate per employee hour.$fill in the blank 2per employee hour 2. Construct the cost formula for total labor cost.Total labor cost = $fill in the blank 3 + ($fill in the blank 4 × Employee hours) 3. Calculate the budgeted…
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,100 15,000 April 2,700 10,000 May 2,900 12,000 June 3,600 18,000 a.$10.00 b.$0.63 c.$0.11 d.$0.67
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $14.01 Variable cost per cake Ingredients 2.21 Direct labor 1.11 Overhead (box, etc.) 0.30 Fixed cost per month $4,156.00 Required: 1. Calculate Cove’s new break-even point under each of the following independent scenarios: a. Sales price increases by $1.50 per cake. b. Fixed costs increase by $515 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.60 per cake. 2. Assume that Cove sold 430 cakes last month. Calculate the company’s degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 15 percent increase in sales revenue.
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.11 Variable cost per cake Ingredients 2.30 Direct labor 1.17 Overhead (box, etc.) 0.16 Fixed cost per month $ 3,602.40 Required: 1. Calculate Cove’s new break-even point under each of the following independent scenarios: a. Sales price increases by $1.50 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.37 per cake. d. Sales price decreases by $0.50 per cake. 2. Assume that Cove sold 405 cakes last month. Calculate the company’s degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 11 percent increase in sales revenue. rev: 10_04_2019_QC_CS-184582 Next Visit question map Question4of7Total4 of 7 Prev
Given the following cost and activity observations for Bounty Company’s utilities, use the high-low method to determine Bounty’s variable utilities cost per machine hour. Round to the nearest cent. Cost Machine Hours March $3,139 14,709 April 2,650 9,989 May 2,817 12,342 June 3,656 17,720 a. $0.74 b. $0.13 c. $1.43 d. $0.78
Moon Bright Sdn. Bhd. is a manufacturer of dish cleaners. The following figures show the cost per unit of production based upon an annual production and sales of 20,000 units: RM Direct materials 80 Direct labour (variable) 40 Variable overhead 20 Fixed overhead 15 Selling price 200 1) Calculate the breakeven point, in units and in value2) Determine the margin of safety in units and in value3) Calculate the profit-volume ratio and indicate what it means.4) Given that there is a sudden extra fixed cost of RM25,000, how many extra units does the company need to sell?
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.01 Variable cost per cake Ingredients 2.25 Direct labor 1.14 Overhead (box, etc.) 0.20 Fixed costs per month 3,334.40 Required: 1.Calculate Cove’s new break-even point under each of the following independent scenarios: a.Sales price increases by $1.20 per cake. b.Fixed costs increase by $520 per month. c.Variable costs decrease by $0.45 per cake. d.Sales price decreases by $0.50 per cake. 2.Assume that Cove sold 335 cakes last month. Calculate the company’s degree of operating leverage. 3.Using the degree of operating leverage, calculate the change in profit caused by a 5 percent increase in sales revenue
The controller of Manufacturing Co. has collected the following data on drilling machines: Month Total Cost Total Hours March $12,460 8,100 April $12,000 7,600 May $63,000 30,000 June $14, 740 9,800 July $25,000 20000 August $55,000 22,000 The price per unit of the drilling machines is $25. Please calculate all of the following: Variable Cost and Fixed Cost using the High-Low Method. Breakeven point in units. Breakeven point in dollars using the Contribution Margin Ratio. Margin of Safety Percentage if their sales are $756,000. How many units they would need to sell in order to have a Net Income of…
Exxarro Llimited is considering pricing and costing for the year ahead. The following data based on expected production and sales of 15 000 units are provided for analysis:Variable manufacturing costR1 185 000Fixed manufacturing costR510 000Sales commissionR5 per unit soldFixed administration costR130 000SalesR210 per unit Study the information provided above and answer the following questions independently:4.1 Calculate the break-even sales value. 4.2 Calculate the sales volume required to achieve a profit of R 800 000. 4.3 Suppose Exxaro Limited is considering a decrease of 10% per unit in the selling price of the product with the expectation that it would increase sales volume by 10%. Is this a good idea? Motivate your answer with relevant calculations.
Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: PerUnit Percent Sales price $ 460 100.00 Variable costs 237 51.52 Unit contribution margin $ 223 48.48 Assume that Staley Co. is currently selling 590 computer monitors per month and monthly fixed costs are $79,800.Staley Co.'s margin of safety ratio (MOS%) if 590 units are sold would be (round intermediate calculation up to nearest whole number of units):