INTRO MGRL ACCT LL W CONNECT
INTRO MGRL ACCT LL W CONNECT
8th Edition
ISBN: 9781266376771
Author: BREWER
Publisher: MCG
Question
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Chapter 4, Problem 2AE

1

To determine

Per unit cost in traditional costing method Under traditional costing method, per unit cost is calculated by adding per unit cost of direct material, labor and overheads. Overhead costs are assigned to products by using a predetermined overhead rate.

Unit product cost for both the products under traditional costing method.

2

To determine

Per unit cost in Activity based costing:

Under activity-based costing, per unit cost is calculated by adding per unit cost of direct material, direct labor and overheads. Here, different activities are identified that give rise to indirect cost and total cost of all the activities (total indirect cost) are allocated to products in the ratio in which products use or consume different activities.

To calculate: Per unit cost under activity-based costing method.

3

To determine

Traditional costing and activity-based costing Both the methods are used in cost accounting to allocate the overheads or indirect cost and to calculate total costs. Traditional costing system uses only one base for such allocation and activity-based costing system uses more than one base based on different activities.

To explain: Which costing system provides more accurate costs.

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1) what is the breakeven selling price per unit for Product A? 2) For product C, assume the selling price cannot change., what variable cost per unit will result in breakeven at 150 units sold? 3) what is the breakeven unit sales for Product F.  Do not give answer in image
1.What is a cost whose total amount changes in direct proportion to a change in volume? mixed cost fixed cost irrelevant cost variable cost 2. Which of the following costs is an example of a fixed cost? delivery costs salary of plant manager direct materials sales commissions 3. If production increases by 15%, how will total variable costs likely react?  remain the same decrease by 15% increase by 7.5% increase by 15% 4. Which of the following statements is TRUE with respect to fixed costs per unit? They will increase as production decreases They will decrease as production decreases They will remain the same as production levels change They will increase as production increases 5. Canine Company produces and sells dog treats for discriminating pet owners. The unit selling price is $10, unit variable costs are $7, and total fixed costs are $3,300. What are breakeven sales?  $11,000 $4,714 $3,300 $7,700 6. Fixed Company produces a single product selling for $30 per unit. Variable costs…
Suppose that the total cost function, in dollars, for the production of x units of a product is given by the equation shown below. C(x) = 4,500 + 30x + 0.2x² Then the average cost of producing x items is represented by the following equation. total cost 4,500 C(x) + 30 + 0.2x (a) Find the instantaneous rate of change of average cost with respect to the number of units produced, at any level of production. (b) Find the level of production at which this rate of change equals zero. X = (c) At the value found in part (b), find the instantaneous rate of change of cost and find the average cost. instantaneous rate of change of cost average cost What do you notice?

Chapter 4 Solutions

INTRO MGRL ACCT LL W CONNECT

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