Hello tutor answer this general accounting question do fast At the high level of activity in November, 7,000machine hours were run and power costs were$2,000. In April, a month of low activity, 2,000machine hours were run and power costs amountedto $6,000. Using the high-low method, what is theestimated fixed cost element of power costs?a. $12,000b. $6,000c. $3,600d. $8,400

Step 1: Define High-Low MethodThe high-low method is a commonly used cost allocation technique used…

Answered: At the high level of activity in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

If fixed costs are $234,000, the unit selling price is $123, and the unit variable costs are $80, what is the break-even sales (units)? a.5,442 units b.1,902 units c.1,153 units d.2,925 units At the end of the year, overhead applied was $3,728,000. Actual overhead was $3,377,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to a.decrease by $702,000 b.increase by $351,000 c.decrease by $351,000 d.increase by $702,000 Bryce Co. sales are $881,000, variable costs are $460,800, and operating income is $288,000. What is the contribution margin ratio? a.47.7% b.52.3% c.57.5% d.43.4%
During the month of August, Amer Corporation produced 12,000 units and sold them for P20 per unit. Total fixed cost for the period were P 154,000, and the operating profit was P 26,000. 9. Based on the foregoing information, the variable cost per unit is a. P 4.50 b. P 5.00 с. Р 6.00 d. P 7.17 Data to be used in applying the high-low method shows the highest cost of P69,000 and the lowest cost of P52,000. The data show P148,000 as the highest level of sales and P97,000 as the lowest level. 10. What is the variable cost per peso sales? c. P 0.54 d. P 3.00 a. P 0.33 h. P 0.47
Current production volume = 20,000 units. However, theoretical capacity 25,000 units, the company is using the current production volume as practical capacity. Furthermore, practical capacity serves as the denominator volume cost estimation, Consider the following costs: Direct material: $240,000, direct labor: $160,000, variable overhead: $5.00 per unit. Traceable fixed overhead: $6,00 per unit, and allocated fixed overhead: $20,000. Compute per unit average cost of production. O $11.00 O $20.00 $32.80 O None of the above are correct
1. Kelley Company produced 10,000 units and sold 7,000 units. Direct materials = $12, direct labor = $8, variable MOH = $2, variable S&A = $1. Total fixed MOH for the year was $50,000. What is the amount of COGS under variable costing? (Single Choice) $220,000 $161,000 $154,000 O $230,000
Suppose that a company manufactures one single product. Annual production capacity is 100 tons. The company manufactured 50 tons and sold 40 tons this vear. Relevant data are as follows: (a) Sales: 40.000.000 $, (b) Direct material costs 14.000.000 $, (c) Direct labor 5.000.000$, (d) Qverhead (variable) 4.500.000 $, (e) Qverhead (fixed) 8.000.000$. Eind the gross profit margin if the company emplovs full absorption costing. And what woQuld be the unit cost of production had the company emploved normal absorption costing?
The costs incurred in the manufacture of 75,000 units of a product are: Direct materials $80,000 Direct labour $15,000 Variable overheads $32,000 Fixed overheads $130,000 If output increases by 15%, what will be the effect, if any, on the variable cost per unit? Show solution
Pluto Company sold 2,000 units in October at a price of $35 per unit. The variable cost is $25 per unit. Calculate the total contribution margin. A. $120,000 B. $20,000 C. $50,000 D. $70,000
assume in march, when dog-days occupancy was at an annual low of 500 days, the average cost per dog-day was 26$. in july, when dog-days were at a capacity level of 4,500, the avgerage cost per dog-day was $10. a. develop an equation for monthly operating costs b. determine the avergae cost per dog-day at an anuual volume of 28,000 dog-days
Thomas Train has collected the following information over the last six months. Month Units produced Total costs March 10,000 $25,600 April 12,000 26,200 May 18,000 28,800 June 13,000 26,450 July 12,000 26,000 August 15,000 26,500 Using the high-low method, what is the variable cost per unit?
What will be the cost per unit for production at 60% capacity? What will be the cost per unit for production at 80% capacity? What will be the total works cost at 60% and 80% capacity?
Answer give With Calculation
Aqua Primavera, Inc. has provided the following information for the year: Units produced 6,000 units Sales price $300 per unit Direct materials $20 per unit Direct labor $30 per unit Variable manufacturing overhead $45 per unit Fixed manufacturing overhead $440,000 per year Variable selling and administration costs $60 per unit Fixed selling and administration costs $260,000 per year What is the unit product cost using variable costing? A.$ 168 $168 B.$ 50 $50 C.$ 95 $95 D.$ 75

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS