Business
Engineering
Math
Science
Social Science
Managerial Accounting: The Corners...
Solutions
Managerial Accounting: The Corners...
Use the following information for Exercises 3-47 and 3-48:
During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows:
Exercises 3-48 Changing the Cost Formula for a Month to the Cost Formula for a Year
Refer to the information for Fly High Airlines above.
Required:
- 1. Develop annual cost formulas for airplane depreciation, fuel, and airplane maintenance.
- 2. Using the three annual cost formulas that you developed, predict the cost of each resource in a year with 480,000 airline flight hours.
1.
Prepare the annual cost formula for airplane depreciation, fuel and airplane maintenance.
High Low Method:
The method in which, high and low points of data are used to classify the mixed cost into fixed and variable cost known as high low method. This is one among the three costs of separation methods.
The cost formula for airplane depreciation is,
Substitute $18,000,000 for fixed cost in the above formula.
The cost formula for fuel is,
Substitute $10,134 for variable rate in the above formula
2.
Calculate the total cost of each resource when the number of airplane flight hours is 480,000 hours.
Chapter 3 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addJOURNALIZING CASH RECEIPTS Enter the following transactions in a cash receipts journal: July 6 Daren Chesbrough...
College Accounting, Chapters 1-27
Statement of stockholders equity Using the income statement for Paradise Travel Service from Basic Exercise 1-4...
Corporate Financial Accounting
Passenger load on a flight Eastern Skies Airlines his three flights that depart from New York City and arrive i...
Financial & Managerial Accounting
Break-even sales and cost-volume-profit chart For the coming year, Culpeper Products Inc. anticipates a unit se...
Financial And Managerial Accounting
Journalize the entries to record the following selected transactions: a. Sold 62,800 of merchandise on account,...
Financial Accounting
Discuss any separation of duties necessary to control against unauthorized entries to the general ledger. What ...
Accounting Information Systems
What three implementation approaches may a company choose when applying the inventory valuation rules?
Intermediate Accounting: Reporting And Analysis
Discuss global issues in branding and packaging
MKTG 12:STUDENT ED.-TEXT
What relevant aspects of the economy are not reflected in the national income ac counting system.
ECON MACRO
Explain four ways in which a firm might increase its profits by raising the wages it pays.
Principles of Macroeconomics (MindTap Course List)
Persuasive Organizational Message Flowing Downward: Volunteering for Urban Farming. As employee relations manag...
Essentials of Business Communication (MindTap Course List)
Why do economists sometimes offer conflicting advice to policymakers?
Essentials of Economics (MindTap Course List)
Why are integrated marketing communications being increasingly accepted?
Foundations of Business (MindTap Course List)
REGRESSION AND RECEIVABLES Edwards Industries has 320 million in sales. The company expects that its sales will...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
What Counts?" Step 1. Listed below are several qualities that experts suggest are required to be a successful e...
Management, Loose-Leaf Version
From the inventory perspective, what is the advantage of producing goods as customer orders are received?
Accounting Information Systems
During the Revolutionary War, the American colonies could not raise enough tax revenue to fully fund the war ef...
Principles of Microeconomics (MindTap Course List)
The Kroger Company is one of the largest grocery retailers in the United States, with over 2000 grocery stores ...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
List and briefly explain the three principles that describe how the economy as a whole works.
Brief Principles of Macroeconomics (MindTap Course List)
(Demand and Supply) What happens to the equilibrium price and quantity of ice cream in response to each of the ...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
PRICE/EARNINGS RATIO A company has an EPS of 2.40, a book value per share of 21.84, and a market/book ratio of ...
Fundamentals of Financial Management (MindTap Course List)
Given a description of a companys marketing mix, classify the elements of the marketing mix and the category of...
Contemporary Marketing
Draw the supply and demand curves for turkey. In the equilibrium, show producer and consumer surplus. Explain w...
Principles of Economics (MindTap Course List)
Recording manufacturing costs Todd Lay just began working as a cost accountant for Enteron Industries Inc., whi...
Financial & Managerial Accounting
What is the purpose of each of the following? a. Schedule of accounts receivable b. Schedule of accounts payabl...
College Accounting (Book Only): A Career Approach
Identify the errors in the following income statement:
Financial Accounting
What is a slide error?
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Journal entries and trial balance On August 1, 2016, Rafael Masey established Planet Realty, which completed th...
Accounting (Text Only)
Grande Company has the following balances in its general ledger as of March 1 of this year: a. FICA Taxes Payab...
College Accounting (Book Only): A Career Approach
What is the AP/CD process?
Pkg Acc Infor Systems MS VISIO CD
Explain whether each of the following events will increase, decrease, or have no effect on long-run aggregate s...
Principles of Macroeconomics (MindTap Course List)
In most countries, the birth rate has fallen as incomes and the economic opportunities for women have increased...
Exploring Economics
Can the following equation be used to find the value of a bond with N years to maturity that pays interest once...
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
AMORTIZATION SCHEDULE WITH A BALLOON PAYMENT You want to buy a house that costs 100,000. You have 10,000 for a ...
Fundamentals of Financial Management (MindTap Course List)
Refer to Table 1.6. a. What is the average miles per gallon for city driving? b. On average, how much higher is...
Statistics for Business & Economics, Revised (MindTap Course List)
Identify the two distinct obligations incurred by a corporation when issuing bonds.
Survey of Accounting (Accounting I)
Communication Nordbock Inc. reports the following outstanding bond issue on its December 31, 20Y1, balance shee...
Corporate Financial Accounting
Mary Givens and Peggy Moser are partners engaged in operating The GM Doll Shop, which has employed the followin...
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Why is the MRP curve a firms factor demand curve?
Economics (MindTap Course List)
City B is 10 miles downstream from city A. City A is 5 miles south of the river, and city B is 20 miles north o...
Practical Management Science
In Exhibit 16, economic profit for the firm is at a maximum when output per week equals a. 0 units. b. 100 unit...
Economics For Today
What is target costing? What role does it have in life-cycle cost management?
Cornerstones of Cost Management (Cornerstones Series)
The average farmer is likely to be better informed about federal agricultural policy than the average food cons...
Macroeconomics
What is the purpose of a professional code of purchasing ethics?
Purchasing and Supply Chain Management
