Jordan Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Month July Aug. 138 Sept. 260 Oct. Nov. Dec. Service hours 118 424 322 $16,744 $ 9,200 326 $7,176 $5,230 $13,520 $ 7,160 $22,048 $11,130 $16,952 $10,510 Revenue $6,136 $4,220 Operating costs Required a. What is the average service revenue per hour in each month and the overall average for the six-month period? b. Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour. c. Determine the average contribution margin per hour.

Jordan Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Month July Aug. 138 Sept. 260 Oct. Nov. Dec. Service hours 118 424 322 $16,744 $ 9,200 326 $7,176 $5,230 $13,520 $ 7,160 $22,048 $11,130 $16,952 $10,510 Revenue $6,136 $4,220 Operating costs Required a. What is the average service revenue per hour in each month and the overall average for the six-month period? b. Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour. c. Determine the average contribution margin per hour.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A company began operations in March with cash and common stock of $36,000. The company made $582,000 in net income in its first month. It performed print jobs for customers and billed these customers $900,000. The company collected half of its receivables by the end of the month. The company had a cost of goods sold of $162,000 paid for in cash and $6,000 inventory left over at the end of the month. The company's employees earned wages but those are not paid until the first of April. This was the company’s only liability. How would I calculate the income statement and balance sheet for the end of March?
43 Poly products LLC Oman provided the following information for 5 months as below: Month Sales (OMR.) Wages (OMR.) August 360,000 24,000 September 384,000 28,000 October 216,000 22,000 November 348,000 20,000 December 252,000 30,000 50% of credit sales are realized in the month following the sales and remaining 50% in the second following. Determine the collection from debtors for the month of October. a. OMR 282,000 b. OMR 372,000 c. OMR 422,000 d. OMR 300,000
Lawson Manufacturing Company has the following account balances at year end: Office supplies Raw materials Work-in-process $ 4,000 25,000 61,000 Finished goods 109,000 Prepaid insurance 6,000 What amount should Lawson report as inventories in its balance sheet?
During the fourth quarter of 20--, there were seven biweekly paydays on Friday (October 4, 18; November 1, 15, 29; December 13, 27) for Quality Repairs. Using the forms supplied below, complete the following forms for the fourth quarter. If an amount or input box does not require an entry, leave it blank or enter "0". Quarterly Payroll Data Total Earnings 5 Employees OASDI HI FIT SIT $18,750.00 $1,162.50 $271.88 $1,875.00 $1,312.50 Employer's OASDI $1,162.50 Employer's HI 271.88 Federal deposit liability each pay 677.68 a. Complete the Federal Deposit Information Worksheets reflecting electronic deposits (monthly depositor). Federal deposit liability each pay, $677.68. FEDERAL DEPOSIT INFORMATION WORKSHEET Employer Identification Number 00-0004701 Name QUALITY REPAIRS Month Tax Year Ends 12 Amount of Deposit fill in the blank 1 Type of Tax (Form) fill in the blank 2 Tax Period Address 10 SUMMIT SQUARE Phone Number…
Scribe Company, a manufacturer of writing instruments, provides the following financial information: Operating income Net sales Total assets at Jan. 1 Pen Division Pencil Division $100,000 $30.000 $500,000 $150,000 $580,000 $255,000 $610,000 $275,000 Total assets at Dec. 31 Calculate the return on investment for the Pencil Division. (Round your answer to two decimal places.) OA. 11.32% OB. 10.91% OC. 11.76% OD. 16.81%
Record the following month end adjustments in one batch. A.) Memo #0228-Adj1 the month-end accrued wages $1,860 in total, 40% to Electrical Division and 60% to Machinery Division. Record the month-end wages accrual. B.)) Memo #0228-Adj2, was issued in response to a revised calculation of anticipated bad debts 50% to the Electrical Division and 50% to the Machinery Division based on a percentage of accounts receivable. Management has requested the Allowance for Doubtful Accounts $530 at the end of February
For February, sales revenue is $579,000, sales commissions are 7% of sales, the sales manager's salary is $80,300, advertising expenses are $87,600, shipping expenses total 3% of sales, and miscellaneous selling expenses are $2,000 plus ½ of 1% of sales. Total selling expenses for the month of February are a. $230,695 b. $227,800 c. $169,900 O d. $210,430
For February, sales revenue is $610,000, sales commissions are 7% of sales, the sales manager's salary is $91,600, advertising expenses are $92,700, shipping expenses total 3% of sale, and miscellaneous selling expenses are $2,200 plus 1/2 of 1% of sales. Total selling expenses for the month of February are a.$247,500 b.$250,550 c.$186,500 d.$229,200
On December 31st Baxter inc has costs of goods sold of 360,000 ending inventory is 17,000. Beginning inventory is 20,000. And and average accounts payable is 84,000. What is the accounts payable turnover expressed as days -64 -86 -84 -95
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income? Gross profit? Allocated costs (uncontrollable) $2,035 Labor expense 41,580 Sales 188,000 Research and development (uncontrollable) 310 Depreciation expense17,000 Net income/(loss) ? Cost of goods sold 118,440 Selling expense 1,240 Total expenses ? Marketing costs (uncontrollable) 800 Administrative expense 690 Income tax expense (21% of pretax income) ? Other expenses 310
20. Andrew, marketing clerk for Shine Agency, recorded the following information for last year: Month Number of Customers Customer Service Costs January 356 $ 527,233 February 417 544,335 March 338 482,655 April 526 668,050 May 400 530,500 June 457 656,910 July 366 543,770 August 495 680,400 September 345 487,230 October 531 712,325 November 443 629,030 December 415 542,000 He would like to be able to estimate customer service costs using the number of customers as the basis for estimation. However, because he has never taken a course in managerial accounting, he does not know how to set up a cost equation. He has therefore approached you for help. Required: 1. Set up a cost equation for monthly customer service costs using the high–low method.
Don't give answer in image