Need help with this accounting questions Eastwood Manufacturing accumulates the following data concerning amixed cost, using machine hours as the activity level:MonthMachine Hours Total Cost ($)January 7,50012,450February 6,80011,520March8,20013,340April6,50011,05012,080May 7,200Using the high-low method, calculate the variable cost per machinehour.

To calculate the variable cost per machine hour using the high-low method, follow these steps: Step…

Answered: Eastwood Manufacturing accumulates the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2. Determine the cost to be charged to the product for the year. 3. Determine the cost to be charged to factory overhead for the year. 4. Determine the plotted data points using Chart Wizard. 5. Determine R2. 6. How do these solutions compare to the solutions in P4-2 and P4-3? 7. What does R2 tell you about this cost model?
Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Overhead: Selling and administrative expenses: Required: 1. Classify each cost element as either variable, fixed, or semi-variable. (Hint: Recall that variable expenses must go up in direct proportion to changes in the volume of activity.) 2. Calculate the break-even point in units and dollars. (Hint: First use the high-low method illustrated in Chapter 4 to separate costs into their fixed and variable components.) 3. Prepare a break-even chart. 4. Prepare a contribution income statement, similar in format to the statement appearing on page 540, assuming sales of 5,000 units. 5. Recompute the break-even point in units, assuming that variable costs increase by 20% and fixed costs are reduced by 50,000.
Scattergraph, High-Low Method, and Predicting Cost for a Different Time Period from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. Required: 1. Prepare a scattergraph based on the 10 months of data. Does the relationship appear to be linear? 2. Using the high-low method, prepare a cost formula for the receiving activity. Using this formula, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated? Use the following information for Problems 3-60 and 3-61: Farnsworth Company has gathered data on its overhead activities and associated costs for the past 10 months. Tracy Heppler, a member of the controllers department, has convinced management that overhead costs can be better estimated and controlled if the fixed and variable components of each overhead activity are known. One such activity is receiving raw materials (unloading incoming goods, counting goods, and inspecting goods), which she believes is driven by the number of receiving orders. Ten months of data have been gathered for the receiving activity and are as follows:
Given the following costs and activities for Downing Company electrical costs, use the high-low method to calculate Downing’s variable electrical costs per machine hour.
Cullumber Company accumulates the following data concerning a mixed cost, using miles as the activity level. MilesDriven TotalCost MilesDriven TotalCost January 8,005 $14,170 March 8,500 $14,790 February 7,500 13,490 April 8,200 14,485 (A) Compute the variable cost per mile using the high-low method. (Round answer to 2 decimal places, e.g. 2.25.) Variable cost per mile $Type your answer here (B) Compute the fixed cost elements using the high-low method. Fixed costs $Type your answer here
Deidoro Company has provided the following data for maintenance cost: Machine hours Maintenance cost Multiple Choice Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are closest to: (Round your intermediate calculations to 2 decimal places.) O O Prior Year 17,100 20,100 $ 29,400 $ 34,200 $29,400 per year; $1.701 per machine hour Current Year $2,040 per year; $1.701 per machine hour $2,040 per year; $1.600 per machine hour $29,400 per year; $1.600 per machine hour
Crane Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Miles Driven Total Cost January 7995 14180 March 8510 14909 February 7505 13502 April 8200 14495 a/ Compute the variable cost per mile using the high-low method. (Round answer to 2 decimal places) Variable cost per mile b/ Compute the fixed cost elements using the high-low method. Fixed costs
Cullumber Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Miles Total Cost Driven Cost January 8,005 $14,170 March 8,500 $14,790 February 7,500 13,490 April 8,200 14,485 (a1) Your answer is correct. Compute the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places, e.g. 2.25.) Variable cost per mile (a2) eTextbook and Media $ 1.3 Compute the fixed costs using the high-low method for this mixed cost. Total fixed costs +A $ Attempts: 1 of 10 used
Cullumber Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Miles Total Driven Cost January 8,005 $14,170 March 8,500 $14,790 February 7,500 13,490 April 8,200 14,485 (a1) Compute the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places, e.g. 2.25.) Variable cost per mile +A $
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Determine fixed and variable costs using the high-low method and prepare graph. E2.26 (LO 3) The controller of Furgee Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs. Total Maintenance Costs Total Machine Hours Month January February March April May June $2,500 3,000 3,600 4,500 3,200 4,900 300 350 500 690 400 700 Instructions a. Determine the fixed and variable cost components using the high-low method. b. Prepare a graph showing the behaviour of maintenance costs, and identify the fixed and variable cost components. Use 100-hour increments and $1,000 cost increments.
The controller of Carla Vista Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month Total Maintenance Costs Total Machine Hours January $2,830 300 February 3,130 350 March 3,730 500 April 4,630 690 May 3.330 500 June 6,030 700 (a1) Your answer is correct. Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.) Variable cost per machine hour $ 8 (a2) eTextbook and Media Determine the fixed costs using the high-low method for this mixed cost. Total fixed costs $ Attempts: 1 of 10 used

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