Question 2A company has recorded the following data in the two most recent periods.Total costs of production Volume of($)20tonim(Units)13,50070018,3001,100What is the best estimate of the company's fixed costs per period?Answer

Given that: Cost at 700 units = $13500 Cost at 1100 units = $18300

Answered: Question 2 A company has recorded the…

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter19: Cost-Volume-Profit Analysis

Section: Chapter Questions

Problem 8DQ: Both Austin Company and Hill Company had the same unit sales, total costs, and income from...

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To determine the effect of different levels of production on the company’s income, move to cell B7 (Actual production). Change the number in B7 to the different production levels given in the table below. The first level, 100,000, is the current level. What happens to the operating income on both statements as production levels change? Enter the operating incomes in the following table. Does the level of production affect income under either costing method? Explain your findings.
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
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Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-17 Refer to the information for Barnard Company on the previous page. The total period expense is a. 276,000. b. 200,000. c. 76,000. d. 40,000. e. 36,000.
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Question 2 A company has recorded the following data in the two most recent periods. Total costs of production Volume of ($) 20tonim (Units) 13,500 700 18,300 1,100 What is the best estimate of the company's fixed costs per period? Answer