During the past year, Gutter Corp., operated within the relevant range of its fixed costs. Monthly production volume during the year ranged from 78,000 to 130,000 units of product and corresponding total manufacturing costs ranged from $6.15 to $4.75 per unit. Determine the total cost behavior pattern experienced by Gutter Corp.
Q: Jacarda Company makes a composting bin that is subject to wide seasonal variations in demand. Unit…
A: Factory overhead is the indirect cost incurred in the process of manufacturing. Therefore, it is…
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: Jacarda Company makes a composting bin that is subject to wide seasonal variations in demand. Unit…
A: Answer:- Predetermined Overhead Rate:- It is the rate used to allocate manufacturing overhead cost…
Q: XYZ Company uses the high-low method to analyze mixed costs. During the year, the highest level of…
A: High-low method is used to differentiate the fixed and variable cost from a limited amount of data.
Q: Colby Limited is a manufacturing company whose total factory overhead costs fluctuate somewhat from…
A: The costs incurred for the production are classified as fixed and variable costs. The high low…
Q: Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate…
A: The high-low method is used to separate the fixed and variable costs from the mixed costs of…
Q: Colby Limited is a manufacturing company whose total factory overhead costs fluctuate somewhat from…
A: Variable cost Depends upon the production of goods or services that is increment of sales increases…
Q: The Sou ion manufactures a single product and has the following cost Variable costs per unit:…
A: Lets understand the basics.Product cost can be calculated using,(1) Variable costing (2) Absorption…
Q: Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the…
A: Variable cost: It is the cost that changes with the change in the level of units
Q: Mission Company is preparing its annual profit plan. As part of its analysis of the profitability of…
A: Overheads are the expenses incurred during the production process and they are not directly related…
Q: Gloria’s a food manufacturer is trying to make an assessment of its operations for the past year.…
A: In management accounting, variances can be defined as the difference between the actual amount and…
Q: Colby Limited is a manufacturing company whose total factory overhead costs fluctuate somewhat from…
A: The High-Low Method, which is also referred to as High-Low Analysis, is a straightforward approach…
Q: One company manufactures one of the products, and the unit cost is as follows: 18 dinars, direct…
A: A variable costing income statement is one in which all variable expenses are deducted from revenue…
Q: 2. What is the expected contribution margin ratio? Round to the nearest whole percent. % 3.…
A: Contribution Margin is the difference between Sales and Variable Cost. Break Even Point is a point…
Q: Total estimated overhead costs $650,000 Total estimated DL hours 130,000 Actual overhead costs…
A: Overhead variance is the difference between actual overhead and applied overhead.
Q: Apply the Concepts, Cost Reporting Medco Inc., a manufacturing firm, has four activities: purchasing…
A: Cost Report for Medco Inc. (Year 1 Ended)**Value-and Non-Value-Added Cost Report**| Activity | Total…
Q: The section of Waterways that produces controllers for the company provided the following…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: XYZ Company uses the high-low method to analyze mixed costs. During the year, the highest level of…
A: As per High-Low method, Variable Cost Per Unit = (Highest activity cost – Lowest activity…
Q: Bakan Corporation has provided the following production and average cost data for two levels of…
A: The variable manufacturing cost per unit is the manufacturing cost that changes with the number of…
Q: Pavilion Company is using the high-low method to determine the fixed and variable components of its…
A: Mixed-cost problems are solved using the high-low-cost method. Variable and fixed costs are…
Q: Pearson Electric Company uses the high-low method to analyze mixed costs. The following information…
A: A high low method is used to separate the mixed cost into fixed cost and variable cost. In this…
Q: Vaughn Company incurred the following costs during the year: direct materials $21.10 per unit;…
A: Lets understand the basics.Costing statement can be prepared using,(1) Variable costing(2)…
Q: [The following information applies to the questions displayed below.] O'Brien Company manufactures…
A: Income statement An income statement summarizes the revenues, costs, and overall profit or loss for…
Q: Riders Company computes net operating income under both the absorption costing approach and the…
A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…
Q: The controller of Ferrence Company estimates the amount of materials handling overhead cost that…
A: The process of recognizing, aggregating, and assigning costs to cost items is known as cost…
Q: Use Table 2 to answer this question. XYZ Corporation has provided the following data from its…
A: Sale=Number of units sold×Per unit=430×$130=$55,900
Q: Masley Corporation has provided the following data for its two most recent years of operation:…
A: Formula: Total product cost under variable costing = Direct materials + Direct labor + Variable…
Q: allowed for the actual output of the period. Data concerning the most recent fixed overhead cost for…
A: Variance: It is the difference between standard and actual data
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: Dowell Company produces a single product. Its income statements under absorption costing for its…
A: The income statement can be prepared using different methods as variable and absorption costing.…
Q: turing overhead and administrative expenses $ 240,000 $ 80,000 ar of operations, Walsh produced…
A: In Absorption costing, unit product cost is sum of direct material, direct labour , variable…
Q: Colby Limited is a manufacturing company whose total factory overhead costs fluctuate somewhat from…
A: The costs incurred for the production are classified as fixed and variable costs. The variable costs…
Q: ational Co. produces small electric engines. It incurs the following costs for the year. Which of…
A: Solution Concept Variable product cost : The cost that increases as the number of the unit…
Q: Information taken from Kombucha Cooperative's records for the most recent year is as follows: Direct…
A: 1.Inventoriable cost as per absorption costing= Direct material used + Direct Labor + Variable…
Q: Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the…
A:
Q: Mazoon Company decided to use the high-low cost estimation method to analyze its mixed costs. During…
A: In August (highest level of activity) = 45,500 labor hours and had a total cost of $121,450 In…
Q: The following are Silver Corporation's unit costs of making and selling an item at a volume of 8,700…
A: Relevant costs' can be defined as any cost relevant to a decision. A matter is relevant if there is…
Q: Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the…
A: Number of Unit Estimated to be Sold = 10,200Selling Price per unit = $200Total Sales = 10,200 * $200…
Q: Ghia Manufacturing Corporation charges its Maintenance Department's service costs to two operating…
A: Charging variable overhead for performance evaluation purposes typically involves allocating or…
Q: [The following information applies to the questions displayed below] Diego Company manufactures one…
A: Variable cost per unit is an important concept in cost accounting and financial analysis since it…
Q: Mazoon Company decided to use the high- low cost estimation method to analyze its mixed costs.…
A: Under high low method the highest activity cost and quantity is differentiated with the lowest…
Step by step
Solved in 3 steps
- Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years operations: es aw all Variable costs per unit: Manufacturing: Direct materials. Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $53 per unit. Req 1A 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and…The Shatontola Co. Ltd is a single-product manufacturing company, which uses a marginal costing system for internal management purposes. The year-end external reports are converted to absorption costs. Variances are charged to the cost of goods sold. The following data refers to the years ended 31 December 2020 and 2021: 2020 2021 K K Sales price per unit 80 90 Standard marginal cost per unit: Direct materials 21 23 Direct Labour…The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production $ 33 Selling and administrative $ 16 Fixed costs per year: Production $ 130,830 Selling and administrative $ 107,280 Last year, 6,230 units were produced and 6,030 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
- Lukin Corporation reports the following first-year production cost information:[The following information applies to the questions displayed below.] Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit $ 60 Direct labor per unit $ 22 Variable overhead per unit $ 8 Fixed overhead for the year $ 528,000 Selling and administrative costs Variable selling and administrative cost per unit $ 11 Fixed selling and administrative cost per year $ 105,000 1a. Assume the company uses absorption costing. Determine its product cost per unit. 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labor-hours worked in the factory. Total factory overhead costs at high and low levels of activity for recent years are given below: Direct Labor Hours 61,000 Total Factory Overhead Cost 16,625,000 14,000,000 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 61000 hour level of activity as follows: Indirect Materials (Variable) Rent (Fixed) Maintenance (Mixed) 1,998,000 Total Factory overheads Cost 14,000,000 To have data available for planning, the company wants to break down the maintenance cost into its variable and fixed cost elements 90,000 5,002,000 7,000,000 Required: 1. Estimate how much of the $16,625,000 factory overhead cost at the high level of activity consists of maintenance cost. (Hint: To do this, it…
- Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow:Smithson Electric provides residential and business electric... [The following information applies to the questions displayed below.] Smithson Electric provides residential and business electric repair services. While direct labor and materials costs are traced to individual customers, administrative labor and transportation costs are considered overhead and applied as a percentage of direct labor costs. At the beginning of the year, Smithson estimates $10,000 of overhead costs and $50,000 of direct labor costs. Actual costs for the year are $12,000 for overhead and $48,000 for direct labor. Ending balances for WIP Inventory, Finished Goods Inventory, and Cost of Goods Sold are $4,000, $15,000, and $141,000 respectively. PR 4-5 (Static) Questions a-c. Answer the following questions based on the details provided. Question a. What is Smithson's predetermined overhead rate as a percentage of direct labor? Note: Round your answer to the nearest percent. b. The Jackson account accumulated…Mazoon Company decided to use the high-low cost estimation method to analyze its mixed costs. During the year 2020, the highest level of activity at peak season was in August (45,500 labor hours for a total cost of $121,450) and the lowest level of activity was in November (18,000 labor hours for a total cost of $80,200). What is the estimated total cost for Mazoon Company at an expected operating level of 32,000 labor hours? O a. None of the answers given O b. $48,000 c. O c. $105,700 O d. $101,200 e. $100,825 14:03 here to search A d0 ENG 15-04-2021 "bet se og up delete home end %23 96 & 7. num + backspace 3 4 6. 8. lock E Y 8 A home pg up 5 0 enter F J K pause C V MI ↑ shift 11 end alt ctri ins
- Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials $26 Direct labor 17 Factory overhead $114,300 13 Selling expenses: Sales salaries and commissions 23,700 6 Advertising 8,000 Travel 1,800 Miscellaneous selling expense 2,000 5 Administrative expenses: Office and officers' salaries 23,200 Supplies 2,900 2 Miscellaneous administrative expense 2,660 3 Total $178,560 $72 It is…The following Informetlon relates to a company with a relevant range of activity from 10,000 units to 15,000 unlts. They are currently producing and selling 12,000 units. The average cost per unit is $7.40 for direct materlals; $4.00 for direct labor, and $4.00 for varlable manufacturing overhead. The average fixed cost per unit is $14.20 for fixed manufacturing overhead; $2.70 for fixed selling expenses and $1.80 for fixed administrative expenses. Variable selling expenses are $.60 per unit and varlable administrative expenses are $.50 per unit. Required: (For questlons a. - d. assume that 14,000 units are produced and sold.) a. Calculate the total amount of varlable cost for the units sold. b. Calculate the varlable cost per unit sold. (Round "Per unit" answer to 2 decimal places.) c. Calculate the total amount of fixed manufacturing costs. d. Calculate the average fixed manufacturing cost per unit produced. (Round "Per unit" answer to 2 decimal places.) e. Calculate the Incremental…Weldon’s Concrete (WC) wishes to present its operating results for the year ended December 31, 2016, in the form of a contribution margin income statement. Weldon’s Concrete produces a single product and has a relevant range between 20,000 and 80,000 units. Total production costs range from $321,875 to $966,875 at the low and high ends of the relevant range, respectively. Sales volume in 2016 was 32,000 units, and net income was $45,125. Weldon’s Concrete does not maintain any beginning or ending Work-In-Progress or Finished Goods inventories. Questions: 1. Prepare a contribution margin income statement for the year ended December 31, 2016. Include columns for total dollars, per-unit dollars, and percentages of sales. 2. Draw a rough Cost-Volume-Profit (CVP) graph for this situation. Draw (include) and label all relevant axes, points and lines, and the break-even point.