Handy Hiking produces backpacks. In the previous year, its highest and lowest production levels occurred in July and January, respectively. In July, it produced 4,100 backpacks at a total cost of $115,000. In January, it produced 2,600 backpacks at a total cost of $88,000. Using the high/low method, the average variable cost per of producing a backpack was:

Handy Hiking produces backpacks. In the previous year, its highest and lowest production levels occurred in July and January, respectively. In July, it produced 4,100 backpacks at a total cost of $115,000. In January, it produced 2,600 backpacks at a total cost of $88,000. Using the high/low method, the average variable cost per of producing a backpack was:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Happy Gilmore produces snackpacks. In 2021, its highest and lowest production levels occurred in July and January, respectively. In July, it produced 10,000 snackpacks at a total cost of $148,000. In January, it produced 4,000 snackpacks at a total cost of $100,000. Using the high/low method, determine the total cost prediction if they sell 5,000 snackpacks.
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Handy Hiking produces backpacks. In the previous year, its highest and lowest production levels occurred in July and January, respectively. In July, it produced 4,100 backpacks at a total cost of $108,000. In January, it produced 2,600 backpacks at a total cost of $87,000. Using the high/low method, the total estimated fixed cost was: a. 108,000 b. 57,400 c. 50,600 d. None of the answer is correct
Rocky Mountain Camping Equipment, Inc., has established the following direct-material standards for its two products. Standard Quantity Standard Price Standard camping tent 22 yards $ 10.00 per yard Deluxe backpacking tent 17 yards $ 7.80 per yard During March, the company purchased 4,600 yards of tent fabric for its standard model at a cost of $48,760. The actual March production of the standard tent was 160 tents, and 3,600 yards of fabric were used. Also during March, the company purchased 1,600 yards of the same tent fabric for its deluxe backpacking tent at a cost of $11,840. The firm used 4,080 yards of the fabric during March in the production of 240 deluxe tents. Required:1. Compute the direct-material purchase price variance and quantity variance for March.2. Prepare journal entries to record the purchase of material, use of material, and incurrence of variances in March.
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Data Beginning inventory, January 1 Ending inventory, December 31 Fixed manufacturing overhead Fixed operating costs Variable costs per case: Direct Materials Grapes Bottles, corks, and crates Direct labour Bottling Winemaking Aging 30,000 cases 20,000 cases $4,200,000 $7,856,000 $17.50 per case $11.50 per case $6.50 per case $14.80 per case $1.80 per case On December 31, the unit costs per case for closing inventory are $58.70 for variable costing and $75.70 for absorption costing. I
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Subject: Acounting