A wholesaler of custom-built air-conditioning units for commercial buildings gathered the following monthly data relating to unitsshipped and total shipping expense:Units shippedTotal shipping expense$2,000$2,500$1,900$2,200$2,500$3,030$1,950Month2.JanuaryFebruaryMarch3.AprilMayJune4.7.July3Using the high-low method estimate the cost formula for shipping expenses, calculate the variable shipping expense as well as fixedshipping expense per unit.%24(All answers are whole numbers - unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type1000 for one thousand. Negative numbers should be added with a minus sign, e.g, -1000 for a decrease or loss of one thousand.)Variable shipping expense = $per unit.Fixed shipping expense = $per unit.

The high low method of estimating costs dictates that the difference between the cost at the highest…

Answered: A wholesaler of custom-built…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Schoen Corp. manufactures three types of electrical motors. Type A is sold upon completion of the production assembly. Types B and C can be sold after production or sent to a different plant for further processing to add various capabilities to the motors. The following data are available for each of the three types of motors at the beginning of the month: Units to be produced Total costs to produce before further processing Total sales revenue if sold immediately Additional processing costs Total sales revenue if processed further Additional profit (or loss) if B is processed further: $ A 10,000 $240,000 300,000 0 0 B 8,000 $250,000 320,000 30,000 340,000 6,000 $240,000 300,000 20,000 360,000
The following is an extract of a cost report for Best Car Wash for the six months from Jun to Nov. Management considers the activities in these six months as within the relevant range for the purpose of cost Month Number of cars washed Carwashing labour Costs ($) Jun 500 7,000 Jul 520 7,200 Aug 480 6,800 Sep 510 7,100 Oct 400 6,000 Nov 600 8,000 Based on the above data, determine the cost behaviour of the car washing labour cost. Justify your answer. 2. Quality Press Ltd produces a number of products, including a weekly newspaper called The Quality Times, customised business cards and printed stationery. In preparing next year’s budget, the accountant is analysing the behaviour of the company’s major costs, listed below, and considering possible cost The cost of paper used in the Quality Times. Each edition comprises 40 pages The cost of the card used for business The cost of the lease on the company The…
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The following data for units shipped (*) and Y (shipping cost) has been observed over the last 6 weeks:Week. X. Y 1. 4. €18 2. 3. 17 3. 8. 25 4. 6. 20 5. 7. 24 6. 2. 16 For planning purposes, management would like to know the amount of variable cost of shipping a unit (b) and total fixed shippingcost per week (a). RequiredUsing the High low method, estimate the variable cost of shipping a unit (b) and total fixed shipping cost per week (a) AND expressthe cost data in the form of Y=a +bx
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Prepare a production cost report for the Blending Department for the month of October. (Enter cost per equivalent units to the nearest cent. Abbreviations: EUP = Equivalent Units of Production.) Please include explanations.
Marlin Company has the following projected costs for manufacturing and selling and administrative expenses: (Click the icon to view the projected costs.) Prepare a schedule of cash payments for Marlin for January, February, and March. Determine the balances in Prepaid Property Taxes, Accounts Payable, and Utilities Payable as of March 31. (Assume the company started operations in January. If an input field is not used in the table leave the input field empty; do not enter a zero.) Cash Payments Direct Materials: Accounts Payable balance, January 1 January-Direct material purchases paid in February February-Direct material purchases paid in March Total payments for direct materials Direct Labor: Total payments for direct labor January February March Total Data table Direct materials purchases Direct labor costs Depreciation on plant Utilities for plant Property taxes on plant Depreciation on office Utilities for office Property taxes on office Office salaries Print January February…
What is the activity rate based on machine hours? Activity rate based on the number of machine setups? Activity rate based on the number of purchase orders?
Using variable costing, service company Paradise Pool Cleaning Service provides pool cleaning services to residential customers. The company has three employees, each assigned to specific customers. The company considers each employee's territory as a business segment. The company incurs variable costs that include the employees' wages, pool chemicals, and gas for the service vans. Fixed costs include depreciation on the service vans. Following is the income statement for the month of July: Paradise Pool Cleaning Service Income Statement for the month Ended July 31, 2020 Benton McMillian Faulkner Total Service Revenue $ 4,000 $ 3,000 $ 3,500 $ 10,500 Variable Costs 1,600 1,500 2,100 5,200 Contribution Margin 2,400 1,500 1,400 5,300 Fixed Costs 3,000 Operating Income $ 2,300 Requirements 1. Calculate the contribution margin ratio for each business segment. 2. The business segments had the following numbers of customers: Benton, 80; McMillian, 60; and Faulker, 70. Compute the service…
< a. C. eBook b. Show Me How (Round the per unit cost to the nearest cent and use in subsequent computations. If required, round your answers to the nearest dollar.) Journalize the following entries for the month: a. Materials are purchased to produce 1,560 units. b. Conversion costs are applied to 1,480 units of production. c. The cell completes 1,410 units, which are placed into finished goods. If an amount box does not require an entry, leave it blank. Check My Work intr-amprogress=false Lean Accounting The annual budgeted conversion costs for a lean cell are $124,440 for 1,700 production hours. Each unit produced by the cell requires 15 minutes of cell process time. During the month, 1,480 units are manufactured in the cell. The estimated materials costs are $57 per unit. ☐☐☐☐☐☐ 00 00 00 G ✩ = 0 Previous Next Upd
Sunland Co. gathered the following information on power costs and factory machine usage for the last six months: Power Cost Factory Machine Hours $28,390 15,800 36,069 21,400 32,895 18,700 ITT 26,235 15,100 23,890 13,500 20,700 Month January February March April May June Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers. (a) Your answer is correct. What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.) Variable power costs $ (b) eTextbook and Media * Your answer is incorrect. 10.500 Fixed power costs What is the estimated fixed power cost each month? High 1.41 per factory machine hour 20,683 $ Low Attempts: 1 of 5 used
Consider the following information: Suppliers’ payment period 40 days Receivables’ collection period 40 days Finished goods holding period 15 days Work – in progress holding period 10 days Raw materials inventory holding period 20 days a) what is the operating cycle? Select one: A. 75 days B. 85 days C. 70 days D. None of the above

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