A corporation has the following information for the first quarter of its year: Months Machine hours Cleaning expense January 2,100 February 2,600 March 1,600 $900 $1,200 $800 Using the high-low method, what is the corporation s fixed cost?
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- 1.A processing cost for a corporation consists of both fixed and variable costs. Refer to the four-month data below and apply the high-low method to answer the question. Minutes Total Ball January 460 $4,000 February 210 $2,695 March 170 April 300 If the company uses 390 minutes in May, how much will the total bill be? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar) $6.157 O $1,829.10 09.472 O No response is correct. O $1.842.60 $2.640 $2,835The phone bill for a corporation consists of both fixed and variable costs. Refer to the four-month data below and apply the high-low method to answer the question. Minutes Total Bill January 480 $4500 February 240 $2690 March 160 $2630 April 300 $2845 If the company uses 360 minutes in May, how much will the total bill be? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) $1697 $2102 $3799 $7305
- Island Enterprises has presented the following information for the past eight months operations: 11 Month April KAy Daits Total Cost $18,500 4,750 J,950 $16,400 2,150 $12,600 $14,700 June J,550 July Aagust Septamber 4,950 Octaber 1,250 $17,500 4,650 Movember 4,150 $21,000 $18,000 $17,200 a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. (Round variable cost to 2 decimal places.) Faed Cost Per Month Variable Cost Per Unit b. What would total costs be for a month with 3,750 units produced? (Do not round your intermediate calculations.) Total CootsHow would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c. Property rent of $11,500 per month on plant and equipmentCustomers as a Cost Object Morrisom National Bank has requested an analysis of checking account profitability by customer type. Customers are categorized according to the size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Additional data concerning the usage of the activities by the various customers are also provided: Required: (Note: Round answers to two decimal places.) 1. Calculate a cost per account per year by dividing the total cost of processing and maintaining checking accounts by the total number of accounts. What is the average fee per month that the bank should charge to cover the costs incurred because of checking accounts? 2. Calculate a cost per account by customer category by using activity rates. 3. Currently, the bank offers free checking to all of its customers. The interest revenues average 90 per account; however, the interest revenues earned per account by category are 80, 100, and 165 for the low-, medium-, and high-balance accounts, respectively. Calculate the average profit per account (average revenue minus average cost from Requirement 1). Then calculate the profit per account by using the revenue per customer type and the unit cost per customer type calculated in Requirement 2. 4. CONCEPTUAL CONNECTION After the analysis in Requirement 3, a vice president recommended eliminating the free checking feature for low-balance customers. The bank president expressed reluctance to do so, arguing that the low-balance customers more than made up for the loss through cross-sales. He presented a survey that showed that 50% of the customers would switch banks if a checking fee were imposed. Explain how you could verify the presidents argument by using ABC.
- 1. Categorize each of the following as a fixed expense or a variable expense. 1) CFO salary, $600,000 a year 2) Sales associates receive a commission of $6 for each unit sold 3) Material used to make the product costs $10 a unit 4) Accountant’s fees, $8,000 for the year 5) Rent is $50,000 for the yearConsider the following Information for the business Harry's Vintage Records. Actuals from the year ended 31st December 2021; Total Sales Revenue Total Fixed Costs $380,000 $90,000 0.20 Contribution Margin Ratio Calculate Harry's profit or loss in 2021 Select one: O a. (13,000) O b. 11,000 c. 12,000 d. (14,000)You have reviewed the utility bills for your company. You have determined that the highest and lowest bills were $5,000 and $3,200 for the months of January and September. If your company produced 1,050 and 600 units in these months, what was the fixed cost associated with the utility bill? a. $435.50 b. $485.00 c. $590.00 d. $800.00
- Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. Assume sales are $1,425,000.*THIS IS THE LAST PART OF THE QUESTION- THE IMAGE ARE THE FIRST PART THIS IS THE ENDING* A&R bills audit services based on billable hours and advising services at a fixed fee. The cost for audit services is determined by multiplying the billable hours by the quoted employee rates. Staff rates for the following year are $370 per hour and manager rates are $925 per hour. The rates are set to meet the competition in the area. To determine the cost (not the price) of the job. A&R uses a job costing system. To the employee costs (not the billing rates) is added an amount for overhead based on the predetermined rate and the billable hours in the job. The predetermined rate is based on expected billable hours. Total revenue at A&R next year is expected to be $16 million. The two founding partners of A&R are looking at these forecasts for next year and trying to decide whether to drop one of these services. "We should probably become more focused, as we sometimes remind our…The following information is available for a company's cost of sales over the last five months. MonthUnits soldCost of salesJanuary560$28,600February740$34,000March1,300$46,000April2,560$58,000 Using the high-low method, the estimated total fixed cost is: