Chicago Bread Company shows the following recent monthly costs for employeewages. Chicago Bread Company's employees receive a fixed salary plus hourlycompensation for overtime hours.# of LoavesProducedCost ofMonthEmployee WagesSeptember16,050$6,010October15,675$5,980November19,425$6,194December20,350$6,220January15,200$5,911February16,025$5,978 Chicago Bread Company uses the High-Low Method to estimate the variable andfixed cost components of employee wages. What is the variable wage cost per loafof bread?$0.39$0.06$0.31$16.67

Answered: Chicago Bread Company uses the High-Low…

Chicago Bread Company uses the High-Low Method to estimate the variable and fixed cost components of employee wages. What is the variable wage cost per loaf of bread? $0.39 $0.06 $0.31 $16.67

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Abdulwahab Corporation is estimating the cost function for total cost of production of product A…

A: Variable cost is the cost which changes with change in production volume and fixed cost is the cost…

Q: Under marginal (Variable) costing system, which of the following cost items is NOT considered in…

A: Answer: c) Advertising expenditure

Q: 60. Which of the following terms could be used to correctly describe the wages paid to the workers…

A: Conversion cost:Conversion cost is the sum of direct labor and manufacturing overhead costs incurred…

Q: Identify the following as fixed costs (F), variable costs (V), or mixed costs(M). office salaries…

A: Fixed cost will remain fixed for unit Variable cost will change with change in level of activity…

Q: What is the Average total Cost and Marginal cost at workers 4 ( use ";" to separate your answer,…

A: Average fixed cost =Total fixed costTotal output Average variable cost =Total variable costTotal…

Q: Use a / to categorize each of the following costs. You may have more than one / for each item.…

A: There are majorly three types of costs such as variable costs, fixed costs and semi-variable costs.…

Q: Cost classifications For each of the following costs, check the column(s) thatmost likely apply:Cost…

A: Fixed cost: A fixed cost is a cost incurred by a company that remains fixed irrespective of the…

Q: The company makes a product with the following costs: Direct materials→₱15.70; Direct labor→₱19.70;…

A: Return per unit = (investment x rate of return) / no. of units = (340000*9%)/49000 = ₱0.62 per unit

Q: SIM Company has computed the following unit costs for the year just ended: Direct material used…

Q: Hot'lanta, Inc, which uses the high-low method to analyze cost behavior, has determined that machine…

A: When some cost is showing combined effect of variable and fixed cost i.e. it is semi variable and…

Q: Question 6 The following is the estimated unit cost of manufacturing Product A based on normal…

A: Calculation of selling price in above cases are as follows

Q: or each cost, identify it as: Variable or Fixed - A. B.…

Q: 1. Cabaret Corporation produces a single product. Data concerning the company's operations last year…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Houston Company manufactures and sells one product. The following information pertains to each of…

A: Income statement is the summary which is prepared to show the costs and revenues to determine the…

Q: Data Year 2 Quarter Year 3 Quarter 1 2 3 4. 1 Budgeted unit sales 40,000 60,000 100,000 50,000…

A: Income Statement is a part of financial statement showing the amount of net profit earned by a…

Q: Please do not give solution in image format thanku

A: The income statement can be prepared using various methods as absorption and variable costing. The…

Q: Tick the box showing the correct classification for each cost mentioned below cost Fixed variable…

A: Fixed costs are costs that do not change with change in level of activity. Variable costs changes…

Q: b) Discuss two advantages and two disadvantages of a standard costing system in which the standard…

A: Standard Costing: Standard costing is an accounting tool which is used to measure the variances…

Q: Thyne Incorporated has provided the following data concerning one of the products in its standard…

A: Standard cost per unit is the total budgeted manufacturing cost per unit produced during the…

Q: Lillibridge & Friends, Incorporated provides you with the following data for its single product:…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: MCO Manufacturer uses a standard costing system and the following information belongs to the…

A: Standard direct labor cost per unit = Standard hours per unit x Standard labor rate per hour where,…

Q: A company manufactures and sells soap. The direct material costs per unit is K2.00, the direct…

A: The contribution to sales ratio is like the slice of the revenue pie that remains after covering the…

Q: 27.An example of a fixed cost is

A: Fixed costs Fixed costs are those cost which remain fix in total value irrespective of the…

Q: Chips Co., maker of computers, incurred the following cost during the year. Is the following cost…

A: Depreciation: It is reduction is a fixed in the value of asset over the time of the asset. It is a…

Q: Lawn RX, Inc. prepares a variable costing income statement for internal management and an absorption…

A: Unit Product Cost = Direct Labor Cost + Variable Cost + Fixed Cost

Q: What was the most fundamental aspect of accounting?

A: The activity of maintaining track of a supplementary ledger is known as accounting. Accounting…

Q: The following example illustrates how traditional cost accounting techniques could result in a…

A: Traditional costing: Under traditional costing The cost is allocated on a single basis say direct…

Q: From the following information, prepare an Income Statement under: (a) Marginal Costing; (b)…

Q: Restaurant Wage costs are often referred to as "step variables". Explain the meaning of this term

A: Variable cost is the cost that varies with the level of output. For instance, Direct material cost…

Q: Which of the following describes a fixed cost? O a. total cost that fluctuates with changes in…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: A company receives payment from one of its customers on August 5 for services performed on July 21.…

A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…

Q: Why might a company claim that the total cost of employing a person is $15.30 per hour when the…

A: The objective of the question is to understand why a company might claim that the total cost of…

Q: price

A: Fixed Overhead Rate6.35Variable Overhead Rate1.8Total Overhead Rate8.15

Q: Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function…

A: The main objective of High -low method is to separate the fixed cost and variable costs from the…

Q: Rent on the Administrative building would be? DM O DL O MOH O eling & Administrative

A: Part 1: Selling and administrative.

Q: 13. If Job Q includes 30 units, what is its unit product cost? 14. Assume that Sweeten Company uses…

A: MoldingFabricationFixed manufacturing overhead costs$10250$15150Divided by: Total Machine…

Q: Hi-Tek Manufacturing, Incorporated, makes two industrial component parts-B300 and T500. An…

A: Activity-Based Costing (ABC) is a costing methodology that assigns overhead costs to specific…

Q: Please classify the following cost: advertising expenses, by choosing one of the options below. O…

A: Advertising expense is a revenue expense incurred on the selling and distribution of goods and…

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Chicago Bread Company shows the following recent monthly costs for employee
wages. Chicago Bread Company's employees receive a fixed salary plus hourly
compensation for overtime hours.
# of Loaves
Produced
Cost of
Month
Employee Wages
September
16,050
$6,010
October
15,675
$5,980
November
19,425
$6,194
December
20,350
$6,220
January
15,200
$5,911
February
16,025
$5,978

Chicago Bread Company uses the High-Low Method to estimate the variable and
fixed cost components of employee wages. What is the variable wage cost per loaf
of bread?
$0.39
$0.06
$0.31
$16.67

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Ramos Company has the following unit costs: Variable manufacturing overhead Direct materials Direct labor Fixed manufacturing overhead Fixed marketing and administrative $19 18 NP 23 16 14 What cost per unit would be used for product costs under full absorption costing?
Please do not give solution in image format thanku
Question 1 Answer: Question 2 a Total Manufacturing Costs: Variable Fixed Factory Overhead Total Cost Per Unit b Markup Percentage % Seling Price
What is the answer is correct?!!
Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 27 7 4 9 370,800 183,200 During the year, the company produced 30,900 units and sold 22,900 units. The selling price of the company's product is $73 per unit. Required: 1. Assume that the company uses absorption costing. a. Compute the unit product cost. Unit product cost b. Prepare an income statement for the year. (Do not leave any empty spaces; Input a O wherever it is required.) Absorption Costing Income Statement Cost of goods sold:
Which of the following statements is incorrect? O A. If MOH is overallocated to a job that has been sold, and the company calculates sales price by marking up job costs, the job will likely be underpriced. O B. The formula to arrive at the POHR is total budgeted manufacturing overhead divided by total estimated allocation base. O C. To calculate the increase to WIP for allocated MOH costs, the POHR is multiplied by the actual amount of the allocation based used by the cost object. D. "Number of units" is typically not an appropriate allocation base for MOH because the company's products do not consume equal overhead resources. If the over/underallocated MOH is fairly large and the majority of the units have not been sold, the balance in MOH should be prorated between WIP, FG, and COGS. O E.
Manny Co.
A manufacturer reports the following. Compute contribution margin. Sales Variable cost of goods sold Fixed overhead Variable selling and administrative costs Fixed selling and administrative costs Multiple Choice $800,000 $642,000 $762,000 $524,000 $ 1,218,000 418,000 338,000 158,000 118,000
Wages paid to factory staff is an example of indirect cost
Please complete the following question thanks.
Bader receives OMR 8 for every hour worked in a Halwa manufacturing company is an example of a. Fixed Cost O b. Variable cost c. Semi variable Cost d. Overhead
Productivity is best described as a. The output produced by the average worker in an hour b. The number of hours the average worker spends at the job c. The percentage of the population that is working d. GDP per capita