CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
6th Edition
ISBN: 9781264445356
Author: Noreen
Publisher: MCG
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Chapter 9, Problem 9.6E
To determine
Introduction:
Flexible budget performance report:
The flexible budget makes it quite easy for the company to adjust static budget
To prepare: A flexible budget performance report that represents both revenues and spending variances and activity variances for September.
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Students have asked these similar questions
A training company runs courses for students that vary in length between one day and four weeks. The size of classes varies between 5 students and 40 students. The company wants to set a price for its courses based on a mark-up on cost. What would be the most appropriate basis for measuring costs?
Question 2 options:
1)
Cost per student per day
2)
Cost per course
3)
Cost per student
4)
Cost per day
Cost Behavior Analysis in a Restaurant: High-Low Cost Estimation
Assume a Papa John's restaurant has the following information available regarding costs at representative levels of monthly sales:
Monthly sales in units
5,000
8,000 10,000
Cost of food sold
$10,000 $16,000 $20,000
Wages and fringe benefits
4,200
4,320
4,400
Fees paid delivery help
1,100
1,760
2,200
Rent on building
1,100
1,100
1,100
Depreciation on equipment
900
900
900
Utilities
800
920
1,000
Supplies (soap, floor wax, etc.)
250
340
400
Administrative costs
1,700
1,700
1,700
Total
$20,050 $27,040 $31,700
(a) Identify each cost as being variable, fixed, or mixed.
Cost of food sold
Wages and fringe benefits
Fees paid delivery help
Requirements
1.
2.
3.
4.
What is the total cost of producing 1,200 mailboxes?
If $18,516 of the total costs are fixed, what is the variable cost of producing
each mailbox?
Write Branson Mailbox's cost equation.
If the plant manager uses the average cost per unit to predict total costs,
what would the forecast be for 1,500 mailboxes?
5.
If the plant manager uses the cost equation to predict total costs, what would
the forecast be for 1,500 mailboxes?
6.
What is the dollar difference between your answers to questions 4 and 5?
Which approach to forecasting costs is appropriate? Why?
Chapter 9 Solutions
CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
Ch. 9 - Prob. 9.1QCh. 9 - Prob. 9.2QCh. 9 - Prob. 9.3QCh. 9 - Prob. 9.4QCh. 9 - Prob. 9.5QCh. 9 - Prob. 9.6QCh. 9 - Prob. 9.7QCh. 9 - Prob. 9.8QCh. 9 - Prob. 9.9QCh. 9 - Prob. 9.10Q
Ch. 9 - The Excel worksheet form on the next page is to be...Ch. 9 - Prob. 1TF15Ch. 9 - Prob. 9.1ECh. 9 - Prob. 9.2ECh. 9 - Prob. 9.3ECh. 9 - Prob. 9.4ECh. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Prob. 9.12ECh. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17PCh. 9 - Prob. 9.18PCh. 9 - Prob. 9.19PCh. 9 - Prob. 9.20PCh. 9 - Prob. 9.21PCh. 9 - Prob. 9.22PCh. 9 - Prob. 9.23PCh. 9 - Prob. 9.24CCh. 9 - Prob. 9.25CCh. 9 - Prob. 9.26C
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