![Working Papers, Chapters 1-17 for Warren/Reeve/Duchac's Accounting, 26th and Financial Accounting, 14th](https://www.bartleby.com/isbn_cover_images/9781305392373/9781305392373_largeCoverImage.gif)
Working Papers, Chapters 1-17 for Warren/Reeve/Duchac's Accounting, 26th and Financial Accounting, 14th
26th Edition
ISBN: 9781305392373
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 21, Problem 21.3EX
To determine
Cost Behavior: It refers to the method in which a cost changes with respect to the changes in its related activities. This method helps the management in estimating costs for decision making and predict future profits.
Activity Base: The activities that cause the cost to vary accordingly are known as activity base.
To match: the given costs with the most appropriate activity base.
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Identify a particular support function of a college (the library, for example). Discuss possible allocation bases that might be used to allocate costs in the function to programs (degrees) or students.
Identify Activity Bases
For a major university, select the activity base most appropriate for each cost listed below. An activity base may be used more than once or not used at all.
Cost:
Activity Base:
1. Financial aid office salaries
2. Office supplies
3. Instructor salaries
4. Housing personnel wages
5. Employee wages for maintaining student records
6. Admissions office salaries
Define direct costs and indirect costs and prepare a list of three direct and three indirect costs for the Accounting Department at your university.
Chapter 21 Solutions
Working Papers, Chapters 1-17 for Warren/Reeve/Duchac's Accounting, 26th and Financial Accounting, 14th
Ch. 21 - Describe how total variable costs and unit...Ch. 21 - How would the following costs be classified...Ch. 21 - Describe how total fixed costs and unit fixed...Ch. 21 - In applying the high-low method of cost estimation...Ch. 21 - If fixed costs Increase, what would be the impact...Ch. 21 - An examination of the accounting records of...Ch. 21 - Prob. 7DQCh. 21 - Both Austin Company and Hill Company had the same...Ch. 21 - How does the sales mix affect the calculation of...Ch. 21 - What does operating leverage measure, and how is...
Ch. 21 - High-low method The manufacturing costs of...Ch. 21 - High-low method The manufacturing costs of...Ch. 21 - Contribution margin Michigan Company sells 10,000...Ch. 21 - Contribution margin Weidner Company sells 22,000...Ch. 21 - Prob. 21.3APECh. 21 - Prob. 21.3BPECh. 21 - Prob. 21.4APECh. 21 - Prob. 21.4BPECh. 21 - Prob. 21.5APECh. 21 - Prob. 21.5BPECh. 21 - Operating leverage SungSam Enterprises reports the...Ch. 21 - Prob. 21.6BPECh. 21 - Prob. 21.7APECh. 21 - Margin of safety Junck Company has sales of...Ch. 21 - Classify costs Following is a list of various...Ch. 21 - Identify cost graphs The following cost graphs...Ch. 21 - Prob. 21.3EXCh. 21 - Identify activity bases From the following list of...Ch. 21 - Identify fixed and variable costs Intuit Inc....Ch. 21 - Relevant range and fixed and variable costs...Ch. 21 - High-low method Diamond Inc. has decided to use...Ch. 21 - High-low method for a service company Boston...Ch. 21 - Contribution margin ratio a. Segar Company budgets...Ch. 21 - Contribution margin and contribution margin ratio...Ch. 21 - Break-even sales and sales to realize income from...Ch. 21 - Break-even sales Anheuser-Busch InBev Companies,...Ch. 21 - Break-even sales Currently, the unit selling price...Ch. 21 - Prob. 21.14EXCh. 21 - Prob. 21.15EXCh. 21 - Prob. 21.16EXCh. 21 - Prob. 21.17EXCh. 21 - Prob. 21.18EXCh. 21 - Prob. 21.19EXCh. 21 - Prob. 21.20EXCh. 21 - Prob. 21.21EXCh. 21 - Break-even sales and sales mix for a service...Ch. 21 - Margin of safety a. If Canace Company, with a...Ch. 21 - Prob. 21.24EXCh. 21 - Operating leverage Beck Inc. and Bryant Inc. have...Ch. 21 - Items on variable costing income statement In the...Ch. 21 - Variable costing income statement On July 31, the...Ch. 21 - Appendix Absorption costing income statement On...Ch. 21 - Classify costs Seymour Clothing Co. manufactures a...Ch. 21 - Break-even sales under present and proposed...Ch. 21 - Prob. 21.3APRCh. 21 - Prob. 21.4APRCh. 21 - Sales mix and break-even sales Data related to the...Ch. 21 - Contribution margin, break-even sales,...Ch. 21 - Classify costs Cromwell Furniture Company...Ch. 21 - Prob. 21.2BPRCh. 21 - Break-even sales and cost-volume-profit chart For...Ch. 21 - Prob. 21.4BPRCh. 21 - Prob. 21.5BPRCh. 21 - Contribution margin, break-even sales,...Ch. 21 - Prob. 21.1CPCh. 21 - Break-even sales, contribution margin For a...Ch. 21 - Break-even analysis Somerset Inc. has finished a...Ch. 21 - Variable costs and activity bases in decision...Ch. 21 - Variable costs and activity bases in decision...
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Similar questions
- Question 8 Identify Activity Bases For a major university, select the activity base most appropriate for each cost listed below. An activity base may be used more than once or not used at all. Cost: Activity Base: 1. Instructor salaries 2. Admissions office salaries 3. Student records office salaries 4. Financial aid office salaries 5. Housing personnel wages 6. Office suppliesarrow_forwardUse an example to explain how a budget could be used to allocate resources in a university.arrow_forwardListed below are several costs incurred in the loan department of Suwanee Bank and Trust Company. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item.Cost Classificationsa. Controllable by the loan department managerb. Uncontrollable by the loan department managerc. Direct cost of the loan departmentd. Indirect cost of the loan departmente. Differential costf. Marginal costg. Opportunity costh. Sunk costi. Out-of-pocket costCost Items1. Salary of the loan department manager.2. Cost of office supplies used in the loan department.3. Cost of the department’s desktop computers purchased by the loan department manager last year.4. The portion of general advertising cost of the bank that has been allocated to the loan department.5. Revenue that the loan department would have generated for the bank if a branch loan office had been located downtown instead of in the next county.6. Difference in the…arrow_forward
- For each of the following expenses, select the best allocation basis. A. Value of insured assets. B. Square feet of space occupied. C. Proportion of total purchase orders for each operating department. D. Number of employees in department. Maintenance department expenses of the operating departments. Payroll department expenses of all departments. Purchasing department expenses for the operating departments. Insurance expenses of all departments.arrow_forwardMementos Academy is assessing whether to outsource its student enrolment processes. The general process followed by staff in the enrolment office is to first validate students’ prior academic record (e.g., secondary school results) and send an offer of enrolment, provide degree advice and enter students’ study program details into the student record system, and collect fees. The following table shows the costs associated with these three processes: Cost Validation Student records Fees collection Staff salaries 70,400 43,900 39,700 Data processing 9,200 32,500 7,900 Telephone 1,700 4,600 3,000 Postage - 1,500 4,000 Consumables 3,700 45,900 11,800 Electricity 1,600 3,100 3,000 Equipment depreciation 12,200 35,800 31,900 Insurance…arrow_forwardGive examples of various costs Attending college involves incurring many costs. Give an example of a college cost that could be assigned to each of the following classifications. Explain your reason for assigning each cost to the classification. Sunk cost. Discretionary cost. Committed cost. Opportunity cost. Differential cost. Allocated cost.arrow_forward
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- What are possible allocation bases that might be used to allocate costs in a library function to programs (degrees) or students.arrow_forward-f The cost of printer paper on a college campus would be a direct cost to the college but would need to be allocated as an indirect cost to O A. departments. O B. schools. O C. individual student instruction. O D. buildings.arrow_forwardWhich of the following statements is not an Objective of the cost management system Select one: a. Identify and evaluate new activities that can improve performance. b. Determine efficiency and effectiveness of major activities. c. Publish the annual financial statements. d. Measure the cost of resources consumed.arrow_forward
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