Homework Help is Here – Start Your Trial Now!
Business
Accounting
Required: A. Classify each of the costs as being either variable, fixed, or semivariable. B. Calculate amounts for the two unknowns in the preceding table. (Round "Cost A" to 2 decimal places.) C. Calculate the total amount that Vargis would expect at a 85% utilization rate for Cost A, Cost B, and Cost C. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

Required: A. Classify each of the costs as being either variable, fixed, or semivariable. B. Calculate amounts for the two unknowns in the preceding table. (Round "Cost A" to 2 decimal places.) C. Calculate the total amount that Vargis would expect at a 85% utilization rate for Cost A, Cost B, and Cost C. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
See similar textbooks
icon
Related questions
Question

Could you please answer all the required fields corretly.

Vargis Corporation has a machining capacity of 220,000 hours per year. Utilization of capacity is normally 85%; it has been as low as 30% and as high as 90%. An analysis of the accounting records revealed the following selected costs: At a 90% Utilization At a 30% Utilization Rate Rate Cost A: $460,000 $ Total $ 460,000 Per hour 7.50 ? Cost B: $1,964,000 $ Total Per hour $ 12.80 12.80 Cost C: $780,000 $ Total $1,350,000 Per hour 18.50 9.39 Vargis uses the high-low method to analyze cost behavior. Required: A. Classify each of the costs as being either variable, fixed, or semivariable. B. Calculate amounts for the two unknowns in the preceding table. (Round "Cost A" to 2 decimal places.) C. Calculate the total amount that Vargis would expect at a 85% utilization rate for Cost A, Cost B, and Cost C. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) А. Cost A Fixed Cost B Variable Cost C Semivariable В. Cost A $ 2.32 Cost B $ 844,800 C. Total cost
Transcribed Image Text:Vargis Corporation has a machining capacity of 220,000 hours per year. Utilization of capacity is normally 85%; it has been as low as 30% and as high as 90%. An analysis of the accounting records revealed the following selected costs: At a 90% Utilization At a 30% Utilization Rate Rate Cost A: $460,000 $ Total $ 460,000 Per hour 7.50 ? Cost B: $1,964,000 $ Total Per hour $ 12.80 12.80 Cost C: $780,000 $ Total $1,350,000 Per hour 18.50 9.39 Vargis uses the high-low method to analyze cost behavior. Required: A. Classify each of the costs as being either variable, fixed, or semivariable. B. Calculate amounts for the two unknowns in the preceding table. (Round "Cost A" to 2 decimal places.) C. Calculate the total amount that Vargis would expect at a 85% utilization rate for Cost A, Cost B, and Cost C. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) А. Cost A Fixed Cost B Variable Cost C Semivariable В. Cost A $ 2.32 Cost B $ 844,800 C. Total cost
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Real Estate
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS