What is the estimated fixed cost ? Carter Manufacturing, which uses the high-low method, had total costs of $30,000at its lowest activity level when 6,000 units were sold. At its highest level ofactivity, sales equaled 14,000 units, and total costs were $48,000. Using the high-low method, what is the estimated fixed cost?a. $12,000b. $15,000c. $18,000d. $20,000

Step 1: Difference in costs Difference in costs = Total cost at highest point - Total cost at lowest…

Answered: Carter Manufacturing, which uses the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 11MC: Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable...

See similar textbooks

Similar questions

Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Suppose that a company has fixed costs of $11 per unit and variable costs $6 per unit when 11,000 units are produced. What are the fixed costs per unit when 20,000 units are produced?
Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
Company XYZ produced 1,000 units of product A. At this level, the variable manufacturing costs were OMR360,000 and the variable selling and administrative costs were OMR90,000. Furthermore, the total fixed cost was OMR120,000. Assuming the company increased the production level to 1,030 units, what would be the increase in total manufacturing costs? Select one: O a. OMR14,400 O b. OMR10,800 c. None of the given answers O d. OMR13,500 O e. OMR17,100
Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable costs are $5 per unit, what are their fixed costs? A. S240,000 B. S200,000 C. S260,000 D. Their fixed costs cannot be determined from the information presented.
Meadow uses the high-low method, had total costs of $300,250 at its lowest level of activity when 10,500 units were sold. When, at its highest level of activity, sales equaled 16,700 units, total costs were $397,900. Meadow would estimate fixed costs as: $262,525 $97,650 $134,875 Ⓒ$485,050
You have calculated, using the high-low method, a variable cost per machine hour of $0.80 for your production power costs. Power costs at 6,000 machine hours are $5,400; at 9,000 machine hours, they are $7,800. What are the total fixed costs that you would use to estimate production power costs for your company at any level within your relevant range? a. $600 b. $6,400 c. $2,400 d. $4,800
Solve this?
The Cumberland Company provides the following information: Sales (250,000 units) Manufacturing costs: Variable Fixed Selling and administrative costs: Variable Fixed $625,000 212,500 37,500 100,000 25,000 5. What is the contribution margin ratio for Cumberland? 6. What is the total contribution margin for Cumberland? 7. What is the operating income for Cumberland? 8. What is the break-even point in sales dollars for Cumberland?
What is the absorption cost per unit on these financial accounting question?
4. J Company uses the high-low method of estimating costs. Ajax had total costs of $50,000 at its lowest level of activity, when 5,000 units were sold. When, at its highest level of activity, sales equaled 12,000 units, total costs were $78,000. What would Ajax estimate its total cost to be if sales equaled 8,000 units? a) $32,000 b) $52,000 c) $62,000 d) $80,000

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

SEE MORE TEXTBOOKS