11) Barkotf Enterprises, which uses the high-low method to analyze cost behav determined that machine hours best explain the company's utilities cost. The companys relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year Month Utilities 8,700 Machine Hours January February March 800 720 810 8,360 8,950 9,360 9,625 April May 920 950

11) Barkotf Enterprises, which uses the high-low method to analyze cost behav determined that machine hours best explain the company's utilities cost. The companys relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year Month Utilities 8,700 Machine Hours January February March 800 720 810 8,360 8,950 9,360 9,625 April May 920 950

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The following information was collected for the first year of manufacturing for Appliance Apps:…

A: Variable cost of Goods Sold per unit = Direct material + direct labor + variable manufacturing…

Q: Haresh

A: SIMS COMPANYIncome Statement (Variable Costing)ParticularsDetailsAmountRevenue (80,000 Units @ $360…

Q: Hot'lanta, Inc, which uses the high-low method to analyze cost behavior, has determined that machine…

A: When some cost is showing combined effect of variable and fixed cost i.e. it is semi variable and…

Q: Denton Company manufactures and sells a single product Cost data for the product are given: Variable…

A: Absorption CostingVariable CostingDirect Materials$3.00$3.00Direct Labor$10.00$10.00Variable…

Q: [The following information applies to the questions displayed below) Barnes Company reports the…

A: The unit product cost comprises variable and fixed manufacturing costs under absorption costing. The…

Q: Can you please solve this question ?

A: Absorption costing includes all costs of production into product costs. It includes all…

Q: Masley Corporation Variable manufacturing cost per unit produced: Direct materials Direct labor…

A: The unit product cost refers to the cost incurred in the factory for the production of goods and…

Q: Pearson Electric Company uses the high-low method to analyze mixed costs. The following information…

A: A high low method is used to separate the mixed cost into fixed cost and variable cost. In this…

Q: Consider the following information for Presidio Inc.'s most recent year of operations. Number of…

A: Income statement is the financial statement that records all the income and expenses of the…

Q: Sheridan Corp. has collected the following data concerning its maintenan July August September…

A: Variable costs fluctuate with manufacturing or marketing levels and are incurred as a direct…

Q: Provide correct answer

A: Step 1: Introduction to the High-Low MethodThe high-low method is used to bifurcate the total costs…

Q: ) Presented below are the production data for the first six months of the year for the mixed costs…

A: 1. What is the cost function? We're going to use the high-low method, which involves identifying…

Q: BC Company manufactures and sells a single product. The following costs were incurred during the…

A: The income statement can be prepared using various methods as variable costing and absorption…

Q: Masley Corporation has provided the following data for its two most recent years of operation:…

A: Formula: Total product cost under variable costing = Direct materials + Direct labor + Variable…

Q: Leo Company wishes to determine the fixed portion of its electrical costs (a mixed cost).…

A: The question is based on the concept of Cost Accounting.

Q: A company's only product sells for $435 per unit. In its first year of operations, the company…

A: The gross margin under absorption costing is calculated as the difference between sales and cost of…

Q: Required information Use the following information for the Exercise below. (Algo) [The following…

A: Under the absorption costing fixed manufacturing overhead costs incurred are included in the…

Q: Hapza cleaning services has opening hours that fluctuate from month to month. The electricity costs…

A: A high low method of cost estimation is used to calculate the variable cost and fixed cost of the…

Q: I want to correct solution

A: To compute the variable cost per unit using the high-low method, we need to identify the periods…

Q: nd Use Ovrehead Rate During the coming accounting year, Baker Manufacturing, Inc.…

A: The predetermined overhead rate refers to the concept of computing the estimated value achieved by…

Q: Doyle & Company uses a standard costing system. The firm provides the following information about…

A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…

Q: The following data are from the accounting records of Niles Castings for year 2 Units produced and…

A: The income statement is an essential part of the company's financial statements. It is prepared at…

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

11) Barkoff Enterpeises, which uses the high-low method to analyze cost behavior, has
determined that machine hours best explain the company's utilities cost. The company's
relevant range of activity varies from a low of 600 machine hours to a high of 1,100
machine hours, with the following data being available for the first six months ot the
year:
Month
Machine Hours
Utilities
8,700
January
February
March
800
720
810
920
8,360
8,950
April
May
June
9,360
9,625
9,150
950
900

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Wildhorse Corp. has collected the following data concerning its maintenance costs for the past 6 months. July August September October November December (a1) Units Produced Save for Later (a2) 19,420 34,528 Total fixed costs 38,844 23,738 Variable cost per unit $ 67 43,160 41,002 eTextbook and Media Total Maintenance Costs Compute the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places, e.g. 2.25.) un $47.149 51,792 59,345 48,150 80,385 66,898 Compute the fixed costs using the high-low method for this mixed cost. Assistance Used Attempts: 0 of 5 used Submit Answer
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,142 15,489 April 2,691 10,041 May 2,810 11,509 4 June 3,881 18,009 a. $0.15 b. $1.05 O c. $1.64 Od. $1.01 10:21 PM 670002 K 63°F
David Manufacturing, which uses the high-low method for estimating cost function, makes a product called Kwan. The company incurs three different manufacturing cost types (A, B, and C) and has a relevant range of operation between 4,000 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $7 $12.60 $4 $23.60 7,500 units $7 $8.40 $3 $18.40 Required: a) Classify each of the costs (A, B, and C) as either fixed or variable or semi-variable b) Write down a linear cost function that expresses the behavior of Shum's total manufacturing cost as a function of # of units produced. c) If Shum produces 10,000 units, what would be the total cost of manufacturing? d) If all fixed costs (or fixed components of costs) decrease by 10% and all variable costs (or variable components of costs) decrease by 10%, what would be the total cost of manufacturing for an activity level of production of 8,000…
Identifying the Parts of the Cost Formula; Calculating Monthly, Quarterly, and Yearly Costs Using a Cost Formula Based on Monthly Data Gordon Company's controller, Eric Junior, estimated the following formula, based on monthly data, for overhead cost: Overhead Cost = $150,000+ ($52 x Direct Labor Hours) Required: 1. Select the term in the right column that corresponds to the term in the left column. Overhead cost $150,000 $52 Direct labor hours
Following is the revenue and cost data for Metlock Ltd. in the manufacturing of luxury shower curtains for the year ended December 31, 2022: NewsVariable manufacturing costs $34 per curtainVariable selling and administrative expenses $8 per curtain Fixed manufacturing overhead $53,900Fixed selling and administrative expenses $184,800 Units produced and sold 7, 700Selling price $84 per curtain. Prepare an income statement using absorption costing. Prepare an income statement using variable costing.
The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year Machine Hours 18,000 6,000 Busiest month (June) Slowest month (December) What are the direct labor costs per machine hour? Multiple Choice $21.50 $17.25 Direct Labor Costs $285,000 $129,000
need answer of this Question Please Provide it
Consider the following information for Presidio Incorporated's most recent year of operations. Number of units produced Number of units sold Sales price per unit Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($282,960 2,400 units) Total variable selling expenses ($14 per unit sold) Total fixed general and administrative expenses Complete this question by entering your answers in the tabs below. Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a contribution margin income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing. Req 2A Reg 2B 2,400 1,500 $ 630.00 65.00 95.00 45.00 117.90 Req 3 Gross Margin Less: Non-Manufacturing Expenses 21,000.00 74,000.00 Complete a full absorption costing income statement for Presidio.…
The following information was collected for the first year of manufacturing for Appliance Apps: Direct Materials per Unit $2.50 Direct Labor per Unit $1.50 Variable Manufacturing Overhead per Unit $0.25 Variable Selling and Administration Expenses $1.75 Units Produced 39,000 Units Sold 35,000 Sales Price $12 Fixed Manufacturing Expenses $117,000 Fixed Selling and Administration Expenses $20,000 Question Content Area Prepare an income statement under variable costing method. Appliance AppsIncome Statement $- Select - - Select - $- Select - - Select - $- Select - - Select - - Select - $- Select - Question Content Area Prepare a reconciliation to the income under the absorption method. Appliance AppsReconciliation $- Select - - Select - $- Select -
The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($224,000/2,800 units) Total variable selling expenses ($11 per unit sold) Total fixed general and administrative expenses Complete this question by entering your answers in the tabs below. Required: Prepare Crystal Cold's full absorption costing income statement and variable costing income statement for the year. Full Absorption Costing 2,800 2,400 340 60 45 13 80 Variable Costing $ 26,400 $ 60,000
The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($224,000/2,800 units) Total variable selling expenses ($11 per unit sold) Total fixed general and administrative expenses Complete this question by entering your answers in the tabs below. Full Absorption Costing LA LA LA LA LA Variable Costing $ $ $ Required: Prepare Crystal Cold's full absorption costing income statement and variable costing income statement for the year. 2,800 2,400 340 60 45 13 80 $ 26,400 $ 60,000