A wholesaler of custom-built air-conditioning units for commercial buildings gathered the following monthly data relating to units shipped and total shipping expense:| Month | Units Shipped | Total Shipping Expense ||---------|---------------|------------------------|| January | 2 | $2,000 || February| 5 | $2,500 || March | 3 | $1,900 || April | 4 | $2,200 || May | 6 | $2,500 || June | 7 | $3,030 || July | 3 | $1,950 |**Task:** Using the high-low method, estimate the cost formula for shipping expenses. Calculate the variable shipping expense as well as the fixed shipping expense per unit.**Instructions:** (All answers are whole numbers—unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 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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Tractor Company needs to prepare pro forma financial statements for the next fiscal year. To do so, the company must forecast its total overhead cost. The actual machine hours and total overhead cost are presented below for the past six months. Machine Hours 1,990 2,100 1,750 1,600 1,870 2,020 Using the high-low method, unit variable overhead cost is calculated to be: Month January February March April May June Multiple Choice O O O $2.08 $1.78 $1.98 $1.68 Total Overhead $ 6,320 $1.88 6,580 6,020 5,590 6,060 6,370
Selecting a Basis for Predicting Shipping Expenses (Requires Computer Spreadsheet*) Cambridge SoundWorks sell portable speakers systems and bluetooth headphones. In an effort to improve the planning and control of shipping expenses, management is trying to determine which of three variables-units shipped, weight shipped, or sales value of units shipped- has the closest relationship with shipping expenses. The following information is available: Weight Sales Value of Shipping Month Units Shipped Shipped (lbs.) Units Shipped Expenses May 10,000 7,500 $350,000 $38,000 June 12,000 8,760 July 15,000 9,200 August 20,000 10,500 432,000 42,000 420,000 50,100 400,000 72,500 September 12,000 7,600 300,000 41,000 October 8,000 6,000 320,000 35,600 Required a. With the aid of a spreadsheet program, determine whether units shipped, weight shipped, or sales value of units shipped has the closest relationship with shipping expenses. Complete the r-squared values between each possible independent…
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Month Yachts Shipped Shipping Cost January 6 $ 11,650 February 4 9,100 March 3 7,825 April 8 14,200 May 2 6,550 June 7 12,925 July 5 10,375 A. Using the high-low method, create the cost formula for C&C Yachts’ shipping costs. B. Prepare a scatter graph of the shipping data using excel. Then use the least-squares regression method to come up with the cost equation that represents the line of best fit. Comment on the accuracy of this equation and how it compares to your high-low method estimation. C. What would you estimate shipping costs to be if C&C Yachts shipped 10 yachts in a single month? Use the cost formula you obtained in part A. Compare this to the cost equation you came up with in Part B.
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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…
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