DESCORHigh-low methodEvander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels ofproduction are as follows:Units Produced Total Costs1,1502,0203,450$169,740229,900264,040a. Determine the variable cost per unit and the total fixed cost.Variable cost sTotal fixed cost sb. Based on part (a), estimate the total cost for 1,660 units of production.Total cost for 1,660 units

Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

High-low method Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced 1,150 2,020 3,450 Total Costs $169,740 229,900 264,040 a. Determine the variable cost per unit and the total fixed cost. Variable costs Total fixed cost s b. Based on part (o), estimate the total cost for 1,660 units of production. Total cost for 1,660 units

High-low method Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced 1,150 2,020 3,450 Total Costs $169,740 229,900 264,040 a. Determine the variable cost per unit and the total fixed cost. Variable costs Total fixed cost s b. Based on part (o), estimate the total cost for 1,660 units of production. Total cost for 1,660 units

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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High-Low Method Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 4,185 $294,840 1,485 189,540 2,840 203,440 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) $fill in the blank 1 per unit Total fixed cost $fill in the blank 2 b. Based on part (a), estimate the total cost for 2,040 units of production. Total cost for 2,040 units: $fill in the blank 3
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Chapter 3- CVP Cost-volume-profit (CVP) analysis requires an understanding of cost behavior: variable and fixed costs. Cost behavior differs from the GAAP-based financial reporting focus: product and period costs. The two ways to categorize costs results in TWo different income statements: Absorption costing income statement: S-C-GM-SA-NI (Key assumption: Split costs into product and period costs) Variable costing income statement: S-VE-CM-FE-NI (Key assumption: Split costs into variable and fixed) 1. 2. Absorption Costing Income Statement Variable Costing Income Statement Sales $500,000 Sales $500,000 Less: Variable expenses Less: Cost of goods sold: Variable (DM+DL+VOH) Fixed (FOH) Gross margin 100,000 Product costs 100,000 60,000 S&A costs 110,000 340,000 Contribution margin 290,000 Less: Fixed expenses Less: Selling & administrative Variable 110,000 Product costs 60,000 Fixed 140,000 S&A costs 140,000 Taxable income $90,000 Taxable income $90,000 LINK THE LINEAR COST FUNCTION TO…
High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 4,760 $305,760 1,960 196,560 3,290 236,090 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) $fill in the blank Total fixed cost: $fill in the blank b. Based on part (a), estimate the total cost for 2,420 units of production. Total cost for 2,420 units: $fill in the blank
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Base from the data, determine the correct cost classifications: Cost ltem Cost at 100 units Cost at 140 units P P8,000 P10,560 L P5,000 P5,000 A P6,500 P9,100 Y P6,700 P8,580 Cost P Cost L Cost A Cost YA. variable fixed mixed variableB. variable fixed variable variableC. mixed fixed mixed mixedD. mixed fixed variable mixed
The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) Hours of January February March April May June July August September October November December Sum Average A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R² T-value a T-value b Activity 480 320 400 300 500 310 320 520 490 470 350 340 4,800 400 49.515 0.12126 Maintenance Costs 4,200 3,000 3,600 2,820 4,350 2,960 3,030 4,470 4,260 4,050 3,300 3,160 $ $ 43,200 3,600 684.65 7.2884 34.469 0.99724 13.827 60.105 What is the variable cost per hour using the high-low…
! Required information [The following information applies to the questions displayed below.] Felix & Company reports the following information. Period Units Produced 0 560 960 123456789 10 1,360 1,760 2,160 2,560 2,960 3,360 3,760 Total Costs $ 4,660 3,960 4,360 4,960 4,060 4,260 8,760 16,160 4,960 11,992 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 2,440 units are produced.
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High-low method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: X Open spreadsheet 105,000 118,000 134,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Variable cost: Total fixed cost: Units Produced a. Determine the variable cost per unit and the total fixed cost. Round your answer for variable cost to the nearest cent. Round your answer for total fixed costs to the nearest dollar. Total Costs per unit Total cost for 86,000 units: $30,307,500 32,745,000 35,745,000 b. Based on part (a), estimate the total cost for 86,000 units of production. Round your answer to the nearest dollar.
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High-Low Method Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 6,300 $482,160 2,100 309,960 4,120 459,430 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) per unit Total fixed cost b. Based on part (a), estimate the total cost for 3,020 units of production. Total cost for 3,020 units: