Silver Products has presented the following information for the past eight months operations: Month Total Cost $ 27,600 $ 26,000 $ 18,500 $ 23,400 $ 26,200 $ 31,150 $ 26,700 $ 25,900 Units April Мay 8,100 6,500 3,900 5,700 7,100 8,500 June July August September 900 ,ר 6,900 October November a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. (Round your variable cost to 2 decimal places.) Fixed Cost Per Month Variable Cost Per Unit b. What would total costs be for a month with 5,100 units produced? (Do not round intermediate calculations.) Total Costs

Silver Products has presented the following information for the past eight months operations: Month Total Cost $ 27,600 $ 26,000 $ 18,500 $ 23,400 $ 26,200 $ 31,150 $ 26,700 $ 25,900 Units April Мay 8,100 6,500 3,900 5,700 7,100 8,500 June July August September 900 ,ר 6,900 October November a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. (Round your variable cost to 2 decimal places.) Fixed Cost Per Month Variable Cost Per Unit b. What would total costs be for a month with 5,100 units produced? (Do not round intermediate calculations.) Total Costs

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 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Use the following information for Brief Exercise: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers and sold 8,000 coffee makers during the month of March at a total cost of 612,500. Each coffee maker sold at a price of 100. Morning Smiles also incurred two types of selling costs: commissions equal to 5% of the sales price and other selling expense of 45,000. Administrative expense totaled 47,500. 2-33 Income Statement Percentages Refer to the information for Morning Smiles Coffee Company on the previous page. Required: Prepare an income statement for Morning Smiles for the month of March and calculate the percentage of sales revenue represented by each line of the income statement. (Note: Round answers to one decimal place.)
Jordan Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: July Aug. Sept. Oct. Nov. Dec. Service hours 118 140 260 424 322 326 Revenue $6,962 $8,260 $15,340 $25,016 $18,998 $19,234 Operating costs $4,220 $5,220 $7,120 $11,120 $9,130 $10,570 Determine the average contribution margin per hour. (Round your answer to 2 decimal places.)
4. Selected account balances for the year ended December 31 are provided below for MelodyCompany:Selling and Administrative salaries . . . . . . . . . . . . . . . . . . . . P110,000Purchases of raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . P290,000Direct Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ?Advertising expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P80,000Manufacturing overhead . . . . . . . . . . . . . . . . . . .. . . . . . . . . . P270,000Sales commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P50,000 Inventory balances at the beginning and end of the year were as follow:Beginning of the year End of the yearRaw materials . . . . . . . . . . . . . . P40,000 P10,000Work in process . .. . . . . . . .. . . ? P35,000Finished goods . . . . . . . . . . . . . P50,000 ? The total manufacturing costs for the were P683,000; the goods available for sale totaledP740,000; and the…
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs (1) $157,000 $198,000 $204,000 Insurance expense (2) 1,040 1,040 1,040 Depreciation expense 2,130 2,130 2,130 Property tax expense (3) 450 450 450 (1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month.(2) Insurance expense is $1,040 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October).(3) Property tax is paid once a year in November.The cash payments for Finch Company expected in the month of June are a.$49,500 b.$252,000 c.$153,000 d.$202,500
The following information is available for a company's cost of sales over the last five months. MonthUnits soldCost of salesJanuary560$28,600February740$34,000March1,300$46,000April2,560$58,000 Using the high-low method, the estimated total fixed cost is:
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $160,000 $199,000 $206,600 Insurance expense** 1,050 1,050 1,050 Depreciation expense 2,160 2,160 2,160 Property tax expense*** 540 540 540 *Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month.**Insurance expense is $1,050 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October).***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of May are a.$189,250 b.$229,250 c.$40,000 d.$149,250
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs (1) $159,700 $196,100 $203,300 Insurance expense (2) 1,160 1,160 1,160 Depreciation expense 1,890 1,890 1,890 Property tax expense (3) 450 450 450 (1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month.(2) Insurance expense is $1,160 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October).(3) Property tax is paid once a year in November.The cash payments expected for Finch Company in the month of April are a.$119,775 b.$141,478 c.$123,255 d.$159,700
SafeMark Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $102,200 April 96,100 May 87,500 Depreciation, insurance, and property taxes represent $22,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 59% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May. SafeMark Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March April May March expenses: Paid in March $fill in the blank 1 Paid in April $fill in the blank 2 April expenses: Paid in April fill in the…
Noventis Corporation prepared the following estimates for the four quarters of the current year: FirstQuarter SecondQuarter ThirdQuarter FourthQuarter Sales $ 1,275,000 $ 1,530,000 $ 1,785,000 $ 2,040,000 Cost of goods sold 434,000 514,000 584,000 634,000 Administrative costs 500,000 280,000 285,000 295,000 Advertising costs 0 140,000 0 0 Executive bonuses 0 0 0 104,000 Provision for bad debts 0 0 0 60,000 Annual maintenance costs 78,000 0 0 0 Additional Information First-quarter administrative costs include the $180,000 annual insurance premium. Advertising costs paid in the second quarter relate to television advertisements that will be broadcast throughout the entire year. No special items affect income during the year. Noventis estimates an effective income tax rate for the year of 40 percent. Assuming that actual results do not vary from the…
Jake’s Roof Repair has provided the following data concerning its costs: Fixed Costper Month Cost perRepair-Hour Wages and salaries $ 21,200 $ 15.00 Parts and supplies $ 7.20 Equipment depreciation $ 2,740 $ 0.45 Truck operating expenses $ 5,710 $ 1.80 Rent $ 4,640 Administrative expenses $ 3,890 $ 0.60 For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,700 repair-hours. The company expects its sales to be $51.00 per repair-hour. Required: Compute the company’s activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Company XYZ made total sales of $250,000 during the month of December. The company also incurred total expenses of $50,000. Of that amount 60% was fixed expenses. Company XYZ expects sales to increase by 16% next month. What is the expected operating profit, in (S) value, next month? Select orie: O a None of the given answers O b. 200,000 O c 230,000 O d. 232,000 O e. 236,800
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $159,300 $195,800 $203,600 Insurance expense** 1,140 1,140 1,140 Depreciation expense 1,820 1,820 1,820 Property tax expense*** 500 500 500 * Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month.**Insurance expense is $1,140 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October).***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are a.$122,895 b.$119,475 c.$159,300 d.$141,098