s M5-10 (Static) Estimating Cost Behavior Using High-Low Method [LO 5-3]Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half ofthe year:MonthJanuaryFebruaryMarchAprilMayJuneNumber ofAppointments250Variable cost per unitTotal fixed cost300500225150175Total Cost$5,0006,0006,1855,3005,4505,230Required:Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment.Note: Round your "Variable cost per unit" answer to 4 decimal places and "Fixed cost" answer to the nearest dollar amount.

Variable cost is a cost which varies with units of production while a fixed cost is a cost which…

Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half o the year: Month January February March April May June Number of Appointments 250 300 500 225 Variable cost per unit Total fixed cost 150 175 Total Cost $ 5,000 6,000 6,185 5,300 5,450 5,230 Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: Round your "Variable cost per unit" answer to 4 decimal places and "Fixed cost" answer to the nearest dollar amount.

Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half o the year: Month January February March April May June Number of Appointments 250 300 500 225 Variable cost per unit Total fixed cost 150 175 Total Cost $ 5,000 6,000 6,185 5,300 5,450 5,230 Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: Round your "Variable cost per unit" answer to 4 decimal places and "Fixed cost" answer to the nearest dollar amount.

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 44E: High-Low Method Refer to the information for Luisa Crimini above. Required: 1. Which month...

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A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
High-Low Method Refer to the information for Luisa Crimini above. Required: 1. Which month represents the high point? The low point? 2. Using the high-low method, compute the variable rate for tanning. Compute the fixed cost per month. 3. Using your answers to Requirement 2, write the cost formula for tanning services. 4. Calculate the total predicted cost of tanning services for September for 2,500 appointments using the formula found in Requirement 3. Of that total cost, how much is the total fixed cost for September? How much is the total predicted variable cost for September? 5. CONCEPTUAL CONNECTION Identify and briefly explain any additional issues that Luisa might be wise to consider when using the high-low method to estimate the costs of her tanning salon.
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
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. Machine Hours March April May June Oa. $0.15 Ob. $1.02 Oc. $0.98 Od. $1.75 Cost $3,007 2,696 2,803 3,778 14,577 10,259 11,668 17,667
2. A company manufacturing two products furnishers the following data for a year: Product Annual Total Total number Total number Output (units) machine of purchase of set ups hours orders A 100 500 50 5 B 75 700 40 10 175 1200 90 15 The annual overheads are as under: Volume related activity costs RO 20000 Set up related costs RO 15000 Purchase related costs RO 35000 Total RO 70000 You are required to calculate the cost per unit of each product A and B based on: a. Traditional method of charging overheads b. Activity based costing method 本本本本本本**本本本本本本本*
elearn.squ.edu.om/mod/qu ING SYSTEM (ACADEMIC) Time left 1:31:39 Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $80; Variable costs per unit includes: Direct material $16, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $96,000. What is the contribution margin percentage? O a. 70% O b. 52.5% O c. None of the given answers O d. 47.5% O e. 60% on Which of the following does not represent a cost-volume-profit analysis equation? O a. Profit = contribution margin - fixed expenses O b. Sales + fixed expenses - profit = contribution margin + sales Fir O c. Sales = total expenses + profit at of Od. Sales - fixed expenses - variable expenses = 0 O e. Contribution margin - fixed expenses - profit = 0 CLEAR MY CHOICE --T:TA TV-E/lo ENG O O 4) Ca ^ 144 144
Trend Reporting for Non-Value-Added Costs Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SQ AQ SP Receiving Receiving orders 12,000 24,000 $21 Assembly Labor hours 99,000 120,000 15 Expediting Orders expedited 0 8,000 50 Storing Number of units 0 16,000 7 Assume that at the beginning of 20x2, Cicleta trained the assembly workers in a new approach that had the objective of increasing the efficiency of the assembly process. Cicleta also began moving toward a JIT purchasing and manufacturing system. When JIT is fully implemented, the demand for expediting…
3. The expected costs for the Maintenance Department Fixed costs (salaries, tools): Variable costs (supplies): Estimated usage by: Assembly Department Fabricating Department Packaging Department Total maintenance hours Actual usage by: Assembly Department Fabricating Department Packaging Department Total maintenance hours of Stazler, Inc., for the coming year include: $64,900 per year $1.35 per maintenance hour 4,500 6,700 10,800 22,000 3,960 6,800 10,000 20,760 i. Calculate a single charging rate for the Maintenance Department. ii. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year.
S3. Account Bismarck Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Bismarck uses an activity-based costing system. The following are the relevant cost data for the previous month: Direct Cost per Unit Model ZM Model DS Direct materials $ 45 $ 20 Direct labor 32 15 Category Estimated Cost Cost Driver Use of Cost Driver Unit level $ 27,000 Number of units ZM: 2,400 units; DS: 9,600 units Batch level 50,000 Number of setups ZM: 25 setups; DS: 25 setups Product level 90,000 Number of TV commercials ZM: 15; DS: 10 Facility level 300,000 Number of machine hours ZM: 500 hours; DS: 1,000 hours Total $ 467,000 Bismarck’s facility has the capacity to operate 4,500 machine hours per month. Required Compute the cost per unit for each product. The current market price for products comparable to Model ZM is $200 and for DS is $86. If Bismarck sold all of its products at the market prices, what was its profit or loss for the previous month? A…
5. Calculate the direct material from the following information: Direct expenses RO 90,000, Direct labor RO 20,000, manufacturing overheads RO 30,000 and prime cost RO 170,000. a.RO 21,000 b.RO18,000 c.RO 60,000 d.RO 20,000 6. Which of the following are used for calculating economic order frequency? i. Total annual consumption ii. No of order per year iii. Buying cost per order iv. 365 days a.i and ii b.ii and iv c.iii and iv d.i and iv
Problem 1. Mahinahon Company would like to institute an activity-based costing system to price products. The company's Purchasing Department incurs costs of P550,000 per year and has six employees. Purchasing has determined the three major activities that occur during the year. Activity Allocation Measure # of People Total Cost Issuing purchase orders # of purchase orders 1 P285,000 Reviewing receiving reports # of receiving reports 2 P190,000 Making phone calls # of phone calls 3 P220,000 During the year, 50,000 phone calls were made in the department; 15,000 purchase orders were issued; and 10,000 shipments were received. Product A required 200 phone calls, 150 receiving reports, and 50 purchase orders. Product B required 350 phone calls, 400 receiving reports, and 100 purchase orders. 1Determine the amount of purchasing department cost that should be assigned to each of these products. 1.2. Determine purchasing department cost per…
9. 3. exercise )uagement. Problem 1 Rosanna Di Magiba Ltd recorded the following costs for the past six months: Using High-Low Method and Least Square Method. Month Total cost Activity level Units (000) K'000 1 40 6,586 30 5,826 36 6,282 4 38 6,396 42 6,700 33 6,052 Required: a. Estimate the fixed cost per month b. Estimate the total costs for the following activity levels in a month 75units 90 units Problem 2 Meng Company is preparing a flexible budget for the next year and requir