The following data below relates to units shipped and total shipping expense have been assembled by Macey Company, a wholesaler of large, custom-built solar water heaters for private households: Month Units shipped Total Shipping Expense January 3 $ 1,800 February 6 $ 2,300 march 4 $ 1,700 April 5 $ 2,000 May 7 $ 2,300 June 8 $ 2,700 July 2 $ 1,200 Required: Assume that 9 units are budgeted for the month of Use the cost formula above to calculate: The total variable cost for shipping for the month of August The total cost of shipping for the month of August.

The following data below relates to units shipped and total shipping expense have been assembled by Macey Company, a wholesaler of large, custom-built solar water heaters for private households: Month Units shipped Total Shipping Expense January 3 $ 1,800 February 6 $ 2,300 march 4 $ 1,700 April 5 $ 2,000 May 7 $ 2,300 June 8 $ 2,700 July 2 $ 1,200 Required: Assume that 9 units are budgeted for the month of Use the cost formula above to calculate: The total variable cost for shipping for the month of August The total cost of shipping for the month of August.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.4E: Identify activity bases From the following list of activity bases for an automobile dealership,...

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The following data below relates to units shipped and total shipping expense have been assembled by Popoppo Company, a wholesaler of large, custom-built solar water heaters for private households: Months Units shipped Total Shipping Expense Jan 3 $1800 Feb 6 $2300 Mar 4 $1700 Apr 5 $2000 May 7 $2300 Jun 8 $2700 Jul 2 $1200 Required: 1) Which method separating mixed cost is most accurate? Provide reasons for your answer based on the strengths and weaknesses of the various methods used for separating mixed costs. 2) The president of the company has no confidence in the high-low method and would like youto check your results using a scattergraph. a. Prepare a scattergraph, using the data given above. Plot cost on the vertical axis and activityon the horizontal axis. Use a ruler to fit a straight line to your plotted points. b. Using your scattergraph, estimate the approximate variable cost per unit shipped and theapproximate fixed cost per month.
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