Activity level in units Variable costs Fixed costs 4,500 $ 7,875 29,000 24,600 $61,475 Mixed costs Total costs uring October, the activity level was 7,600 units, and the total costs incurred were $68,000. equired: Calculate the variable costs, fixed costs, and mixed costs incurred during October. Answer is complete and correct. October $ 13,300 $ 29,000 $ 25,700 ariable cost xed cost ixed cost Use the high-low method to calculate the cost formula for mixed cost. (Do not round intermediate calculations and round ur answers to 2 decimal places.) Answer is complete but not entirely correct.

Activity level in units Variable costs Fixed costs 4,500 $ 7,875 29,000 24,600 $61,475 Mixed costs Total costs uring October, the activity level was 7,600 units, and the total costs incurred were $68,000. equired: Calculate the variable costs, fixed costs, and mixed costs incurred during October. Answer is complete and correct. October $ 13,300 $ 29,000 $ 25,700 ariable cost xed cost ixed cost Use the high-low method to calculate the cost formula for mixed cost. (Do not round intermediate calculations and round ur answers to 2 decimal places.) Answer is complete but not entirely correct.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
Exercises: Set A 27. Identifying Cost Behavior. Mining, Inc., is trying to identify the cost behavior of the three costs shown. Cost information is provided for six months. Cost 1 Cost 2 Cost 3 Units Total Cost per Total Cost per Total Cost per Month Produced Costs Unit Costs Unit Costs Unit 1 8,000 $10,000 $24,000 $32,000 2 10,000 10,000 29,000 40,000 3 12,000 10,000 33,600 48,000 4 14,000 10,000 36,400 56,000 5 16,000 10,000 38,400 64,000 6 18,000 10,000 39,600 72,000 Required: a. Calculate the cost per unit, and then identify how the cost behaves (fixed, variable, or mixed) for each of the three costs. Explain the reasoning behind your answers. b. Why is it important to identify how costs behave with changes in activity?
CLASS ACTIVITY:CASE PROBLEM The Overland Company wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month Electricity Cost Direct Labor January April July October P6,750 7,500 8,500 7,250 Hours 1,500 1,700 2,000 1,600 Required: Determine the following using the high-low method. a. Variable cost per hour b. Fixed Cost Cost equation/function d. How much is the total cost with 2,200 labor hours? C.
Identify cost graphsThe following cost graphs illustrate various types of cost behavior: a. Total direct materials costb. Electricity costs of $1,000 per month plus 50.10 per kilowatt-hour c. Per-unit cost of straight-line depreciation on factory equipmentd. Salary of quality control supervisor, 520,000 per monthe. Per-unit direct labor cost
Net operating income for April under variable costing:A. 4,900 C. (11,100)B. 6,600 D. 11,500
produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Direct materials Direct labor Manufacturing overhead First $ 240,000 128,000 300,000 $ 668,000 Required 1 Required 2 80,000 $8.35 Complete this question by entering your answers in the tabs below. Quarter Total manufacturing costs (a) Number of units to be produced (b) Estimated unit product cost (a) = (b) Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product Second $ 120,000 64,000 220,000 Required 3 Required 4 Third $ 60,000 32,000 180,000 $ 272,000 $ 404,000 40,000 $10.10 20,000 $13.60 Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $2.00, what must be the…
Task 6. The following are consumed for the production of one unit: ➤18 kg of material A (price 1 € / kg and 3 m²) material B (price 2 € / m²) Direct labour per unit of product Responsibility centre 1: 20 hours; rate 0,30€/h ==== Responsibility centre 2: 30 hours; rate 0,50€/h Calculates: Estimated (planned) variable overheads per year Responsibility centre 1: 14,000, € Direct labour 70,000 h Responsibility centre 2: 21 000, € Direct labour 180 000 h 1. variable production costs per unit 2. unit cost of production 3. full cost of one unit Estimated (planned) fixed overheads and general operating expenses per year Production costs - 100,000 € Selling expenses -30 000 € Administration expenses -15 000 €
9. 3. exercise )uagement. Problem 1 Rosanna Di Magiba Ltd recorded the following costs for the past six months: Using High-Low Method and Least Square Method. Month Total cost Activity level Units (000) K'000 1 40 6,586 30 5,826 36 6,282 4 38 6,396 42 6,700 33 6,052 Required: a. Estimate the fixed cost per month b. Estimate the total costs for the following activity levels in a month 75units 90 units Problem 2 Meng Company is preparing a flexible budget for the next year and requir
Allocating Service Department Costs: Allocation Basis Alternatives Weld-Rite Fabricators has two producing departments, P1 and P2, and one service department, S1. Estimated directed overhead costs per month are as follows: P1 $450,000 P2 750,000 $1 273,000 Other data follow: Numbers of employees Production capacity (units) Space occupied (square feet) Five-year average of $1's service output used P1 P2 150 50 100,000 60,000 5,000 15,000 65% 35% For each of the following allocation bases, determine the total estimated overhead cost for P1 and P2 after allocating 51 cost to the producing departments. 1. Based on number of employees $ P1 P2 $ 2. Production capacity in units 3. Space occupied 4. Five-year average of $1 service used 627,450✔ 845,550✔ 5. Estimated direct overhead costs
Question 5: The Information below is taken from production department of Salalah Company for April: The number of units produced is 10000. All amounts are in OMR. Total Costs Variable Cost Fixed Cost Direct material cost 500000 ? Total labor cost Manufacturing Overhead ? 400000 100000 90000 30000 ? Calculate: A. B. Calculate cost per unit B. Describe the production costs in the equation form Y = f+ vX. C. Assume Salalah intends to produce 10000 units next month. Calculate total production costs for the month
Given the following data, calculate product cost per unit under absorption costing. Direct labor Direct materials Variable overhead Fixed overhead Units produced per year Multiple Choice $28.00 per unit $28.60 per unit $30.00 per unit $30.90 per unit $ 17.00 per unit $ 11.00 per unit $ 0.90 per unit $ 100,000 50,000 units