High-Low MethodThe manufacturing costs of Kellam Industries for the first three months of the year follow:JanuaryFebruaryMarchTotal CostsUnits Produced1,950 units3,4305,850$287,820301,570447,720Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.a. Variable cost per unitb. Total fixed cost$

High Low Method - This method is used to segregate the variable and fixed cost. This method is…

High-Low Method The manufacturing costs of Kellam Industries for the first three months of the year follow: January February March Total Costs $287,820 301,570 447,720 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Variable cost per unit Units Produced 1,950 units 3,430 5,850 t

High-Low Method The manufacturing costs of Kellam Industries for the first three months of the year follow: January February March Total Costs $287,820 301,570 447,720 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Variable cost per unit Units Produced 1,950 units 3,430 5,850 t

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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Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials $ 40 per unit Direct labor $ 60 per unit Variable overhead $ 40 per unit Fixed overhead $ 6,600,000 per year Variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 4,000,000 per year Units produced 110,000 units Units sold 80,000 units Sales price $ 360 per unit 1. Prepare an income statement for the year using variable costing.2. Prepare an income statement for the year using absorption costing.
Sales price per unit. 51.00 Fixed costs (per month): Selling, general, and administrative (SG&A) 900,000 Manufacturing overhead 1,800,000 Variable costs (per unit): Direct labor 8.00 Direct materials 13.00 Manufacturing overhead 9.00 4.00 SG&A Number of units produced per month. 300,000 units Required: Compute the amounts for each of the following assuming that both production levels are within the relevant range. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 300,000 units 400,000 units a. Prime cost per unit. b. Contribution margin per unit. C. Gross margin per unit. d. Conversion cost per unit. e. Variable cost per unit. f. Full absorption cost per unit. g. Variable production cost per unit. h. Full cost per unit. $
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Question Doom Bhd manufactures and sells a single product. Cost data for the product are given below: Variable costs per unit: Direct materials RM 7 Direct labour RM 10 Variable manufacturing overhead RM 5 Variable selling and administrative overhead RM 3 Total variable cost per unit RM 25 Fixed costs per month: Fixed manufacturing overhead RM315,000 Fixed selling and administrative overhead RM245,000 RM560,000 The product sells for RM60 per unit. Production and sales data for July and August, that is, the first two months of operations, follow: Units produced Units sold July 17,500 15,000 August 17,500 20,000 The…
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Variable costs per unit: Direct materials A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory $ 131 0 3,320 2,890 430 $ 45 Direct labor Variable manufacturing overhead $ 15 $ 7 Variable selling and administrative expense Fixed costs: $ 19 Fixed manufacturing overhead $92,960 Fixed selling and administrative expense $28,900 The total gross margin for the month under absorption costing is:
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