The following information has been extracted from the cost accounting information system database for Casio Ltd. The company manufactures Casio Calculators. The cost accountant wants to carry out some analysis on the following 5 costs to ascertain the behavior of the costs. The cost accountant extracted the values of the 5 costs at three activity levels of 24,000 units,30,000 units and 36,000 units. (Note: The cost accountant intends to use the units produced as the activity level in the cost analysis. Required: i) Using the information provided in the above table identify and explain how you classify each of the above costs according to behavior of cost approach. ii) From the above classification in (i) calculate the fixed cost for any mixed cost that is identified from the above 5 costs using the high-low cost estimation method.

The following information has been extracted from the cost accounting information system database for Casio Ltd. The company manufactures Casio Calculators. The cost accountant wants to carry out some analysis on the following 5 costs to ascertain the behavior of the costs. The cost accountant extracted the values of the 5 costs at three activity levels of 24,000 units,30,000 units and 36,000 units. (Note: The cost accountant intends to use the units produced as the activity level in the cost analysis. Required: i) Using the information provided in the above table identify and explain how you classify each of the above costs according to behavior of cost approach. ii) From the above classification in (i) calculate the fixed cost for any mixed cost that is identified from the above 5 costs using the high-low cost estimation method.

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Description: The following information has been extracted from the cost accounting information system database for Casio Ltd. The company manufactures Casio Calculators. The cost accountant wants to carry out some analysis on the following 5 costs to ascertain th

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...

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