The following summations are available: Sum of hours: 860 Sum of costs: 4,120 Sum of hours x cost: 890,000 Sum of hours squared: 187,000 Number of months analyzed: 4 Using the least squares method for splitting semi-variable cost, what is the variable rate per hour and fixed cost, respectively? *

The following summations are available: Sum of hours: 860 Sum of costs: 4,120 Sum of hours x cost: 890,000 Sum of hours squared: 187,000 Number of months analyzed: 4 Using the least squares method for splitting semi-variable cost, what is the variable rate per hour and fixed cost, respectively? *

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4BE

See similar textbooks

Related questions

Q: Silver Products has presented the following information for the past eight months operations: Month…

A: There are three forms of cost : 1. Variable cost 2. Fixed cost 3. Semi-variable cost The high-low…

Q: Compute the breakeven point and verify it from the following data:…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: In the month of August, Beauty Salon services 560 clients at an average price of $120. During the…

A: Contribution Margin is the ability of the company to cover its variable cost. It is the balance…

Q: Full Throttle Delivery Co provided the following information for costs of its delivery fleet. Month…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Variable manufacturing costs are $125 per unit, and fixed manufacturing costs are $206,800. Sales…

A: Solution- A- Absorption costing operating…

Q: Tirri Corporation has provided the following information: Direct materials Cost per Unit Cost per…

A: Concept: In this case, the COGS is the cost of sales and at the break-even point sales we recover…

Q: The following information is available for FLOWER Company: Variable Cost = $1 per unit Total Fixed…

A: Formulas used : Break even point in units = Fixed Cost / Contribution per unit Net Income = Net…

Q: DMC produces on average 7,500 units - 12,500 units. The following unit costs are incurred for…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (23,000…

A: Break-even point: The break-even point refers to the situation of the organization where neither…

Q: The data for a production time-based breakeven problem is in Table 4.6 Calculate the following…

A: The breakeven-point is the degree of creation or production where the expenses of creation are…

Q: A company had income of $50,000 using variable costing for a given period. Beginning and ending…

A: Absorption Costing: Absorption costing, also called full costing, is what you are used to under…

Q: Consider the following production and cost data for two products, Big and Little: Big Little Demand…

A: Big Little Contribution margin per unit $24 $18 Divided by labor hour per unit 6 4…

Q: Consider the following production and cost data: Product Q Product P Product K Contrib margin…

Q: In the month of September, Matiock Industries sold 800 units of product. The average sales price was…

A: The contribution margin is calculated as difference between sales and variable costs.

Q: ***Use the following data to answer the next two (2) problems*** MONTH ACTIVITY COST January…

Q: The following costs have been estimated based on sales of 30,000 units: Total Annual Costs…

A: Compute the variable cost per unit: Variable cost per unit=$712,500$30,000=$23.75 unit

Q: How do I find the contribution margin per unit when the maximum capacity with present facilities =…

A: The contribution margin can be calculated by deducting the variable cost per unit from sales price…

Q: A company has an utilization rate of 65%, which at the same time corresponds to their critical…

A: Step 1 Costing is the system for assigning costs to an element of factors of production relevant to…

Q: NUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending…

A: Increase in inventory = 18,000 - 12,000 = 6,000 units If there is an increase in inventory, variable…

Q: The following cost information was provided to you for analysis: August September Units Produced…

A: Variable cost means the cost which vary with the level of output where as fixed cost remains fixed…

Q: If sales are $24,000, variable costs are $8,000, and fixed costs are $3,000, the contribution margin…

A: Contribution margin ratio is the difference between sales cost and variable cost in percentage…

Q: When 5,000 units are produced, variable costs are $6 per unit. Calculate the total variable costs if…

A: Total variable cost = variable cost per unit × Units Produce

Q: Peeler's Smoothie Company has provided the following information: Sales price per unit Variable cost…

A: Solution:- Calculation of Contribution margin ratio as follows:-

Q: Ocean Company makes calendars. Information on cost per unit is as follows: Direct materials $1.50…

A: Contribution is the amount of earnings left after deducting all direct costs from the revenue from…

Q: If fixed costs are $234,000, the unit selling price is $123, and the unit variable costs are $80,…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: If variable manufacturing costs are $13 per unit and total fixed manufacturing costs are $245,100,…

A: Fixed manufacturing costs per unit = total fixed manufacturing costs / No. of units manufactured

Q: Dalian Company provides the following information: Price per uit Variable cost per uniti Fixed cost…

A: The contribution margin indicates the excess amount available for recovering the fixed cost.

Q: Fixed manufacturing costs are $10 per unit, and variable manufacturing costs are $25 per unit.…

A: a. Operating income from Variable Costing is less compared to operating income from Absorption…

Q: Emeka Company has provided the following information: Sales price per unit Variable cost per unit…

A: The term Contribution is considered under the Cost volume Profit method. Contribution means that the…

Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (21,000…

A: Break even points ( Units ) = Fixed cost / Contribution margin per unit Contribution margin per unit…

Q: Voltar has collected the following data for recent months Month Miles Driven Total Cost March 41,000…

A: According to the above data The Highest Activity Cost occurs in the month of April i.e. 44234 and…

Q: Given the following data: Contribution margin per unit: Product A $11 Product B $12 Machine hours…

A: Contribution margin per unit of limited resource = Contribution margin per unit / Machine hours…

Q: Suppose that Larimer Company sells a product for $20. Unit costs are as follows: Direct…

Q: rake Company produces a single product. Last year's income statement is as follows: Sales (21,000…

A: Break-even point is the level of sales output at which the total costs and the total revenues become…

Q: Complete the cost schedule below. When computing the cost per unit, round to two decimal places.…

A: Variable costs increase or decrease depending on a company's production volume. Fixed costs does not…

Q: Prearcan CVBA's income statement shows the following: Sales Revenue: $9,121,000 Variable Costs:…

A: The difference between the Net sales revenue and total variable costs is called the contribution…

Q: The total contribution margin for the month under variable costing is: Multiple Choice $225,400…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (19,000…

A: Answer - Part 1 - 1) Calculation of Break even points (units) = Fixed cost/ Contribution margin per…

Q: The following is information concerning a product manufactured by Ames Brothers. Sales price per…

A: Break-even units = Total fixed costs / Unit contribution margin where, Unit contribution margin =…

Q: Given the following information determine the FIXED COST at high volume using the high-low method:…

A: Solution:- First we need to arrange table as follows under:- Sales units Supplies costs 48,000…

Q: The contribution margin per units 15.68 and the units needed to break even is 220 for the month. If…

A: Given Fixed cost consists of labor cost. At Break even point total fixed cost is equal to total…

Q: The table below shows monthly data collected on production costs and on the number of units produced…

A: Hello Student! Since there are multiple sub-parts posted, we will answer the first three sub-parts.…

Q: Using the high low method, Hadley Company calculated the variable cost as $2.5 per unit. The high…

A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…

Q: The variable production cost per unit of product B is £2 and the fixed production overhead is…

A: Total Variable cost = No. of units produced x variable cost per unit = 3,000 units x £2 per unit =…

Q: Write a linear cost function equation for each of the following conditions. Use y for estimated…

A: Cost drivers are the units of activities which actually drives the cost to incur. Estimated costs…

Q: Suppose that a company has fixed costs of $11 per unit and variable costs $6 per unit when 11,000…

A: Fixed costs are costs that do not change with change in level of activity.

Q: Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $83 per…

A: Sales revenue: It is the revenue earned by a business on selling the goods and services to the…

Q: Solve this attachment.

A: GIVEN, PRICE PER UNIT = $40 VARIABLE COST PER UNIT = $12 FIXED COST PER MONTH =$17000

Q: Based on the following information, prepare a contribution margin income statement assuming the…

A: Answer) Contribution Margin Income Statement Amount Amount Sales $…

Question

QUESTION 9

Cost Accounting
Choose the answer from the choices

The following summations are available:
Sum of hours: 860
Sum of costs: 4,120
Sum of hours x cost: 890,000
Sum of hours squared: 187,000
Number of months analyzed: 4
Using the least squares method for splitting semi-variable cost, what is the variable rate per
hour and fixed cost, respectively? *
O a. P 3; P 500
O b. P 2; P 600
O C.P 2; P 500
O d. P4; P 600

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Calculating the required part.

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting Policies, Changes in Accounting Estimates and Errors

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable costs are $5 per unit, what are their fixed costs? $240,000 $200,000 $260,000 Their fixed costs cannot be determined from the information presented.
Describe the cost formula for a strictly variable cost such as electrical power cost of 1.15 per machine hour (i.e., every hour the machinery is run, electrical power cost goes up by 1.15).
Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Overhead: Selling and administrative expenses: Required: 1. Classify each cost element as either variable, fixed, or semi-variable. (Hint: Recall that variable expenses must go up in direct proportion to changes in the volume of activity.) 2. Calculate the break-even point in units and dollars. (Hint: First use the high-low method illustrated in Chapter 4 to separate costs into their fixed and variable components.) 3. Prepare a break-even chart. 4. Prepare a contribution income statement, similar in format to the statement appearing on page 540, assuming sales of 5,000 units. 5. Recompute the break-even point in units, assuming that variable costs increase by 20% and fixed costs are reduced by 50,000.
Suppose that a company has fixed costs of $11 per unit and variable costs $6 per unit when 11,000 units are produced. What are the fixed costs per unit when 20,000 units are produced?
Assume that the moving activity has an expected cost of 80,000. Expected direct labor hours are 20,000, and expected number of moves is 40,000. The best activity for moving is a. 4 per move. b. 1.33 per hour-move. c. 4 per hour. d. 2 per move. e. e None of these.
A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit? A. $30 B. $50 C. $80 D. $110
The profit function for two products is: Profit3x12+42x13x22+48x2+700, where x1 represents units of production of product 1, and x2 represents units of production of product 2. Producing one unit of product 1 requires 4 labor-hours, and producing one unit of product 2 requires 6 labor-hours. Currently, 24 labor-hours are available. The cost of labor-hours is already factored into the profit function, but it is possible to schedule overtime at a premium of 5 per hour. a. Formulate an optimization problem that can be used to find the optimal production quantity of products 1 and 2 and the optimal number of overtime hours to schedule. b. Solve the optimization model you formulated in part (a). How much should be produced and how many overtime hours should be scheduled?
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?
If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
A companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit? A. $40 B. $60 C. $90 D. $150