The following data pertains to activity and utility costs for two recent years: Year 2 Year 1 Activity level in units 10,000 6,000 Utilities cost observed $12,000 $9,000 Using the high-low method, the cost formula for utilities is: a. 1.50 per unit b. 1.20 per unit c. $3,000 plus $3.00 per unit d. $4,500 plus $0.75 per unit
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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.Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
- The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. 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. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?2. The following data pertains to activity and maintenance costs for two recent years: Year 1 Year 2 Activity in Units 500 400 Maintenance Costs $15,000 $13,000 Using the high-low method, the cost formula for maintenance would be:The following data relates to the operation of a company over a period of two years; year 1: 12,000 units in output level, Ghc21,000 in cost with an inflation index of 1.05; year 2: 16,000 units in output level, Ghc26,750 in cost with an inflation index of 1.03. The total variable cost for 14000 units at an inflation index of 1.08 will be A. Ghc21,840 B. Ghc21,000 C. Ghc22,680 D. Ghc20,300
- Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (25,200 units) $ 226,800 $ 9.00 Variable expenses 136,080 5.40 Contribution margin 90,720 $ 3.60 Fixed expenses 52,920 Net operating income $ 37,800 Required: (Consider each of the four requirements independently): Assume the sales volume increases by 4,032 units: What is the revised net operating income? What is the percent increase in unit sales? Using the most recent month’s degree of operating leverage, what is the percent increase in net operating income? What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 24%? What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $10,000, and the number of units sold decreases by 8%? What is the revised net operating income if the selling price per unit increases…Stratford Company distributes a lightweight lawn chair that sells for $15 per unit. Variable expenses are $6 per unit, and fixed expenses total $180,000 annually. 1. Assume that the operating results for last year were as follows:Sales . . . . . . . . . . . . . . . . . . . . . . . $360,000Variable expenses. . . . . . . . . . . . . 144,000Contribution margin . . . . . . . . . . . . 216,000Fixed expenses . . . . . . . . . . . . . . . 180,000Net operating income . . . . . . . . . . $ 36,000Sales (13,500 units at $20 per unit) . . . . . . . $270,000Variable expenses . . . . . . . . . . . . . . . . . . . . 189,000Contribution margin . . . . . . . . . . . . . . . . . . . 81,000Fixed expenses . . . . . . . . . . . . . . . . . . . . . . 90,000Net operating loss . . . . . . . . . . . . . . . . . . . . $ (9,000) a. Compute the degree of operating leverage at the current level of sales. b. The president expects sales to increase by 15% next year. By how much should net operating income…Calculate Variable costing and Full Costing for the three years data following? Basic Data Selling price per unit sold……………………………………………………Rs. 25 Variable Manufacturing cost per unit produced………………………………Rs10 Fixed Manufacturing cost Per Year…………………………………….Rs.300,000 Variable selling and admin exp. Per unit sold…………………………………Rs.1 Fixed selling and admin exp. Per Year………………………………….Rs.200,000 Year 1 Year 2 Year 3 Units in Beginning inventory…………………………….. 0 0 ? Units in ending Inventory………………………………… 0 ? 0 Units produced 3946 multiply by 10 for year 1, units produced for year 2 is 3946 is 1.25 times and multiply by 10 and for year 3 units produced 3946 is 0.75 times and multiply by 10. Units sold for year all three year 3946 multiply by…
- A recent income statement of Company A reported the following data: Units sold 8,000Sales revenue ₱7,200,000Variable costs ₱4,000,000Fixed costs ₱1,600,000 If the company desired to earn a target net profit of ₱480,000, it would have to sell:A. 1,200 units. B. 2,800 units. C. 4,000 units. D. 5,200 units.ngberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $ 145,000 100 % Variable expenses 58,000 40 % Contribution margin 87,000 60 % Fixed expenses 22,000 Net operating income $ 65,000 Using the degree of operating leverage, estimate the impact on net operating income of a 23% increase in sales. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e 0.1234 should be entered as 12.34).) Net operating income increases by %Dunaway Company reports the following costs for the year: How much are Dunaway’s period Costs? $250,000 $270 000 $345,000 $175,000