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Activity 1 Ang-bang Co., doing business in the province of La Union, reports the following total costs at two levels of production: Cost Item Direct labor Indirect labor 2,000 units P 12,000 4,000 20,000 7,000 24,000 8,000 16,000 5.000 units P 30,000 15,000 20,000 16,000 24,000 19,000 40,000 Classification Property taxes Maintenance Depreciation Utilities Direct materials REQUIRED: Classify each cost as variable, fixed, or mixed.

Activity 1 Ang-bang Co., doing business in the province of La Union, reports the following total costs at two levels of production: Cost Item Direct labor Indirect labor 2,000 units P 12,000 4,000 20,000 7,000 24,000 8,000 16,000 5.000 units P 30,000 15,000 20,000 16,000 24,000 19,000 40,000 Classification Property taxes Maintenance Depreciation Utilities Direct materials REQUIRED: Classify each cost as variable, fixed, or mixed.

FINANCIAL ACCOUNTING
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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Hello, kindly see attached file.. I'm seriously having issues with this subject (cost accounting).. please help me.

4G 4G 08:44 NE 39 3 - Activity.Cos. Activities Activity 1 Ang-bang Co., doing business in the province of La Union, reports the following total costs at two levels of production: Cost Item Direct labor Indirect labor 2,000 units P 12,000 4,000 20,000 7,000 24,000 8,000 16,000 5,000 units P 30,000 15,000 20,000 16,000 24,000 19,000 40,000 Classification Property taxes Maintenance Depreciation Utilities Direct materials REQUIRED: Classify each cost as variable, fixed, or mixed. Activity 2 Jimmy P. is a highly successful farmer who has formed his own company to produce and package banana chips. The recently hired controller for the firm is about to apply the high- low method in estimating the company's energy cost behavior. The following costs were incurred during the past 12 months: Kilos of Banana Chips Produced 105.000 63,000 66,000 72,000 Energy Costs P70,200 66,300 66,000 67,350 Month January February March April 90,000 96,000 2,000 90,000 90,000 84,000 123,000 117,000 May June July August September October November 68,700 70,050 12,500 68.400 69,000 68,100 72,300 74,850 December REQUIRED: 1. Use the high-low method to estimate the company's energy cost behavior and express it in equation form. 2. Predict the energy cost for a month in which 78,000 kilos of banana chips are produced. Activity 3 Mighty Muffler, Inc. operates an automobile service facility that specializes in replacing mufflers on compact cars. The following table shows the costs incurred during a month when 700 mufflers were replaced. Muffler replacements Total costs: 600 700 800 Fixed costs Variable costs Total costs P56,000 28,000 P84.000 a Cost per muffler replacement: Fixed cost Variable cost Total cost per muffler replacement h k m Required: a. Fill in the missing amounts, labeled (a) through ( o), in the table. b. Compute income, assuming that the service fee per muffler replacement is P120, and that the company made 730 muffler replacements during the period. 1 | Page II
Transcribed Image Text:4G 4G 08:44 NE 39 3 - Activity.Cos. Activities Activity 1 Ang-bang Co., doing business in the province of La Union, reports the following total costs at two levels of production: Cost Item Direct labor Indirect labor 2,000 units P 12,000 4,000 20,000 7,000 24,000 8,000 16,000 5,000 units P 30,000 15,000 20,000 16,000 24,000 19,000 40,000 Classification Property taxes Maintenance Depreciation Utilities Direct materials REQUIRED: Classify each cost as variable, fixed, or mixed. Activity 2 Jimmy P. is a highly successful farmer who has formed his own company to produce and package banana chips. The recently hired controller for the firm is about to apply the high- low method in estimating the company's energy cost behavior. The following costs were incurred during the past 12 months: Kilos of Banana Chips Produced 105.000 63,000 66,000 72,000 Energy Costs P70,200 66,300 66,000 67,350 Month January February March April 90,000 96,000 2,000 90,000 90,000 84,000 123,000 117,000 May June July August September October November 68,700 70,050 12,500 68.400 69,000 68,100 72,300 74,850 December REQUIRED: 1. Use the high-low method to estimate the company's energy cost behavior and express it in equation form. 2. Predict the energy cost for a month in which 78,000 kilos of banana chips are produced. Activity 3 Mighty Muffler, Inc. operates an automobile service facility that specializes in replacing mufflers on compact cars. The following table shows the costs incurred during a month when 700 mufflers were replaced. Muffler replacements Total costs: 600 700 800 Fixed costs Variable costs Total costs P56,000 28,000 P84.000 a Cost per muffler replacement: Fixed cost Variable cost Total cost per muffler replacement h k m Required: a. Fill in the missing amounts, labeled (a) through ( o), in the table. b. Compute income, assuming that the service fee per muffler replacement is P120, and that the company made 730 muffler replacements during the period. 1 | Page II
4G 4G 08:45 NE 39 4 - Activity.Sca.. Activities Activity 1 The statistician of RST, Inc. has developed the following cost-prediction equation, using observations from 12,000 to 30,000 machine hours. y = total maintenance cost, x = machine hours Prediction 1 Prediction 2 y = P236,837.5 + P3.7625x. = .81 y = P195,192.5 + P2.4195x, r 65 Required: a. Find the predicted maintenance cost 25,000 machine hours. Activity 2 List the advantages and disadvantages of each of the method of separating mixed costs. Advantage Disadvantage 1. High-low Method 2. Scatter Graph method 3. Least Squares Regression Method Activity 3 Month Production Volume Maintenance Costs April May June 150 230 380 P500 620 800 July August September 120 480 23 710 11 270 REQUIRED: Using the least squares and the information provided above, 1. identify the linear cost function equation (Use 5 decimal places for variable cost per unit and fixed cost) 2. estimate the total cost at production volume of 300 units. 1 | Page II
Transcribed Image Text:4G 4G 08:45 NE 39 4 - Activity.Sca.. Activities Activity 1 The statistician of RST, Inc. has developed the following cost-prediction equation, using observations from 12,000 to 30,000 machine hours. y = total maintenance cost, x = machine hours Prediction 1 Prediction 2 y = P236,837.5 + P3.7625x. = .81 y = P195,192.5 + P2.4195x, r 65 Required: a. Find the predicted maintenance cost 25,000 machine hours. Activity 2 List the advantages and disadvantages of each of the method of separating mixed costs. Advantage Disadvantage 1. High-low Method 2. Scatter Graph method 3. Least Squares Regression Method Activity 3 Month Production Volume Maintenance Costs April May June 150 230 380 P500 620 800 July August September 120 480 23 710 11 270 REQUIRED: Using the least squares and the information provided above, 1. identify the linear cost function equation (Use 5 decimal places for variable cost per unit and fixed cost) 2. estimate the total cost at production volume of 300 units. 1 | Page II
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