Loose-Leaf for Managerial Accounting: Creating Value in a Dynamic Business Environment
11th Edition
ISBN: 9781259727016
Author: HILTON, Ronald, PLATT, David
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 30E
To determine
Calculate the missing amounts in the table.
Expert Solution & Answer
Explanation of Solution
Variable cost: variable cost is the cost that changes according to the production of goods.
Fixed cost: Fixed cost is the cost that does not change in short term even if the production of goods changes.
Calculate the missing amounts.
| Particulars | Number of Muffler replacements | ||
| 500 | 600 | 700 | |
| Total costs: | |||
| Fixed cost | $42,000 (a) | $42,000 | $42,000 (a) |
| Variable cost | 25,000 (c) | 30,000 | 35,000 (d) |
| Total cost | $67,000 (e) | $72,000 | $72,000 (f) |
| Cost per muffler replacement: | |||
| Fixed cost | $84 (g) | $70 (h) | $60 (i) |
| Variable cost | 50 (j) | 50 (k) | 50 (l) |
| Total cost per muffler replacement | $134 (m) | $120 (n) | $110 (o) |
Table (1)
Working notes:
- a) Fixed cost does not vary according to the activity. Therefore, fixed cost for 500 numbers are $42,000.
- b) Fixed cost does not vary according to the activity. Therefore, fixed cost for 700 numbers are $42,000.
- c) Calculate the variable cost for 500 numbers of replacements.
- d) Calculate the total variable cost for 700 numbers of replacements.
- e) Calculate the total cost for 500 numbers of replacements.
- f) Calculate the total cost for 700 numbers of replacements.
- g) Calculate the fixed cost per replacement for 500 numbers.
- h) Calculate the fixed cost per replacement for 600 numbers.
- i) Calculate the fixed cost per replacement for 700 numbers.
- j) Calculate the Variable cost per replacement for 500 numbers.
- k) Calculate the variable cost per replacement for 600 numbers.
- l) Calculate the variable cost per replacement for 700 numbers.
- m) Calculate the total cost per replacement for 500 numbers.
- n) Calculate the total cost per replacement for 600 numbers.
- o) Calculate the total cost per replacement for 700 numbers.
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Chapter 2 Solutions
Loose-Leaf for Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 2 - Distinguish between product costs and period...Ch. 2 - Why are product costs also called inventoriable...Ch. 2 - What is the most important difference between a...Ch. 2 - List several product costs incurred in the...Ch. 2 - Prob. 5RQCh. 2 - Why is the cost of idle time treated as...Ch. 2 - Explain why an overtime premium is included in...Ch. 2 - Prob. 8RQCh. 2 - Give examples to illustrate how the city of Tampa...Ch. 2 - Distinguish between fixed costs and variable...
Ch. 2 - How does the fixed cost per unit change as the...Ch. 2 - Prob. 12RQCh. 2 - Distinguish between volume-based and...Ch. 2 - Would each of the following characteristics be a...Ch. 2 - List three direct costs of the food and beverage...Ch. 2 - List three costs that are likely to be...Ch. 2 - Which of the following costs are likely to be...Ch. 2 - Distinguish between out-of-pocket costs and...Ch. 2 - Define the terms sunk cost and differential cost.Ch. 2 - Distinguish between marginal and average costs.Ch. 2 - Prob. 21RQCh. 2 - Two years ago the manager of a large department...Ch. 2 - Indicate whether each of the following costs is a...Ch. 2 - For each case below, find the missing amount.Ch. 2 - A foundry employee worked a normal 40-hour shift,...Ch. 2 - A loom operator in a textiles factory earns 16 per...Ch. 2 - Consider the following costs that were incurred...Ch. 2 - Alexandria Aluminum Company, a manufacturer of...Ch. 2 - Prob. 30ECh. 2 - A hotel pays the phone company 100 per month plus...Ch. 2 - Prob. 32ECh. 2 - Orbital Communications, Inc. manufactures...Ch. 2 - The state Department of Education owns a computer...Ch. 2 - Prob. 35ECh. 2 - List the costs that would likely be included in...Ch. 2 - Consider the following cost items: 1. Salaries of...Ch. 2 - The following selected information was extracted...Ch. 2 - Prob. 39PCh. 2 - Mason Corporation began operations at the...Ch. 2 - Determine the missing amounts in each of the...Ch. 2 - The following cost data for the year just ended...Ch. 2 - The following data refer to San Fernando Fashions...Ch. 2 - Highlander Cutlery manufactures kitchen knives....Ch. 2 - Cape Cod Shirt Shop manufactures T-shirts and...Ch. 2 - Heartland Airways operates commuter flights in...Ch. 2 - San Diego Sheet Metal, Inc. incurs a variable cost...Ch. 2 - Hightide Upholstery Company manufactures a special...Ch. 2 - For each of the following costs, indicate whether...Ch. 2 - Indicate for each of the following costs whether...Ch. 2 - Water Technology, Inc. incurred the following...Ch. 2 - The following terms are used to describe various...Ch. 2 - Several costs incurred by Bayview Hotel and...Ch. 2 - Refer to Exhibit 23, and answer the following...Ch. 2 - Roberta Coy makes custom mooring covers for boats....Ch. 2 - The Department of Natural Resources is responsible...Ch. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - CompTech, Inc. manufactures printers for use with...Ch. 2 - You just started a summer internship with the...
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