Dog Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from ordersfor various local teams and organizations. While Leslie's prints everything from bowling team jerseys to fraternity or sorority apparel tospecial event shirts, summer league baseball and softball team jerseys are the company's biggest source of revenue.A portion of Leslie's operating information for the company's last year follows:MonthJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberNumber ofJerseys170215195545635710450295370270270185OperatingCost$4,805Variable Cost per JerseyFixed Cost5,8405,7708,6109,2759,8006,2406,0056,1455,9855,9304,950Required:3. Using the high-low method, calculate the store's total fixed operating costs and variable operating cost per jersey.4. Using the high-low method results, calculate the store's expected operating cost if it printed 425 jerseys.Complete this question by entering your answers in the tabs below.Required 3 Required 4Using the high-low method, calculate the store's total fixed operating costs and variable operating cost per jersey.Note: Do not round your intermediate calculations. Round your "Variable Cost" answer to 2 decimal places and "Fixed Cost"answer to the nearest whole number.Required 4 >

The high-low method is used to differentiate the mixed costs. Mixed cost is the combination of fixed…

Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslie's prints everything from bowling team jerseys to fraternity or sorority apparel to special event shirts, summer league baseball and softball team jerseys are the company's biggest source of revenue. A portion of Leslie's operating information for the company's last year follows: Month January February March April May June July August September October November December Number of Jerseys 170 215 195 545 635 710 450 295 370 270 270 185 Operating Cost $ 4,805 5,840 5,770 8,610 9,275 9,800 6,240 6,005 6,145 5,985 5,930 4,950 Required: 3. Using the high-low method, calculate the store's total fixed operating costs and variable operating cost per jersey. 4. Using the high-low method results, calculate the store's expected operating cost if it printed 425 jerseys.

Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslie's prints everything from bowling team jerseys to fraternity or sorority apparel to special event shirts, summer league baseball and softball team jerseys are the company's biggest source of revenue. A portion of Leslie's operating information for the company's last year follows: Month January February March April May June July August September October November December Number of Jerseys 170 215 195 545 635 710 450 295 370 270 270 185 Operating Cost $ 4,805 5,840 5,770 8,610 9,275 9,800 6,240 6,005 6,145 5,985 5,930 4,950 Required: 3. Using the high-low method, calculate the store's total fixed operating costs and variable operating cost per jersey. 4. Using the high-low method results, calculate the store's expected operating cost if it printed 425 jerseys.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...

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Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslie's prints everything from bowling team jerseys to fraternity/sorority apparel to special event shirts, summer league baseball and softball team jerseys are the company's biggest source of revenue. A portion of Leslie's operating information for the company's last year follows: Number of Operating Month Jerseys Printed Cost $5,735 January February 200 205 5,830 8,690 9,800 March 575 April Мay 680 625 9,275 6,230 June 410 July August September October 390 6,140 5,940 4,810 230 180 305 6,005 5,960 4,955 November 235 December 190 Required: 3. Using the high-low method, calculate the store's total fixed operating costs and variable operating cost per jersey. 4. Using the high-low method results, calculate the store's expected operating cost if it printed 455 jerseys. 5. Perform a least-squares…
Tami Tyler opened Tami’s Creations, Incorporated, a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. Tami’s Creations, IncorporatedIncome StatementFor the Quarter Ended March 31 Sales (28,600 units) $ 1,144,000 Variable expenses: Variable cost of goods sold $ 437,580 Variable selling and administrative 194,480 632,060 Contribution margin 511,940 Fixed expenses: Fixed manufacturing overhead 252,800 Fixed selling and administrative 271,140 523,940 Net operating loss $ ( 12,000) Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists…
Assume RajanManufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other sports teams. Rajan, the owner, purchases the vests and prints graphics on the vests for each team. The graphics were designed several years ago, so design costs are no longer incurred. On average, Rajan sells 1,000 vests each month. Typical monthly financial data is shown below: Per Unit Total Monthly Data at 1,000 Vests Sales revenue $20 $20 000 Variable costs: Direct materials $8 $8 000 Direct labour 2 2 000 Manufacturing overhead 3 13 3 000 13 000 Contribution margin $ 7 $ 7 000 Fixed costs (rent, salaries, etc.) 4 000 Profit $ 3 000 The monthly information provided relates to the company’s routine monthly operations. A representative of the local university recently approached Rajan to ask about a one-time special order.…
Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield's business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfield's operating information for the first six months of the year follows: Operating Cost Month January February March April Number of Bottles Sold 1,080 $ 10,570 1,330 15,670 1,850 16,050 2,480 19,680 3,490 27,350 3,610 34,750 May June Required: 3. Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle. 4. Perform a least-squares regression analysis on Garfield's data. 5. Determine how well this regression analysis explains the data. 6. Using the regression output, create a linear cost equation (ya+ bx) for estimating Garfield's operating costs. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 5…
Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. Tami’s Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,050 units) $ 1,122,000 Variable expenses: Variable cost of goods sold $ 462,825 Variable selling and administrative 193,545 656,370 Contribution margin 465,630 Fixed expenses: Fixed manufacturing overhead 297,450 Fixed selling and administrative 190,680 488,130 Net operating loss $ ( 22,500) Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as…
Merton Electronics operates two retail outlets in Port Wren, one downtown and the other in Docklands. The stores share the use of a corporate staff responsible for functions such as personnel, IT, marketing, purchasing, and so on. The cost of the corporate activities for last year was $162,000. The following are the operating results for the two stores for the year: Downtown Docklands Sales revenue $ 720,000 $ 900,000 Number of employees 45 30 Required: Allocate the cost of the corporate activities to the two stores based on: Number of employees. store revenue.
ABC is an online-to-offline platform that sells e-commerce products to offline customers through a network of agents. ABC gives a commission to agents for each sale made. ABC has 4 main product categories: electronics, fashion, supermarket, and others. Please refer to the exhibits for data sets pertaining to the questions below. Today is May 16th. What is the average growth in average sales per agent per month from March to May target? Answer:..... % Which one is the category with the highest and lowest average month-on-month sales growth from March to May target? Answer: Highest : .......... Lowest:............. Today is 16th May We have got the interim result of the sales figures in the first half of May. Typically, the first half of the month constitutes of 40% of sales. Using this assumption, will we reach our May target? What % over the target will we over/under-deliver? Answer: under/over-deliver by ......... % of target Using that assumption, which…
Mc Graw Hill Campbell Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine, an inexpensive calculator. The company's chief accountant recently prepared the following income statement showing annual revenues and expenses associated with the segment's operating activities. The relevant range for the production and sale of the calculators is between 35,000 and 68,000 units per year. Revenue (37,000 units x $9.00) Unit-level variable costs Materials cost (37,000 × $2.00) Labor cost (37,000 × $1.00) Manufacturing overhead (37,000 × $0.70) Shipping and handling (37,000 × $0.34) Sales commissions (37,000 × $1.00) Contribution margin Fixed expenses Advertising costs Salary of production supervisor Allocated company-wide facility-level expenses Net loss $333,000 (74,000) (37,000) (25,900) (12,580) (37,000) 146, 520 Required a. A large discount store has approached the owner of Campbell about buying 6,000 calculators. It would replace…
Odle Company manufactures a popular brand of cat repellant known as Cat-B-Gone, which it sells in gallon-size bottles with a spray attachment. The majority of Odie's business comes from orders placed by homeowners who are trying to keep neighborhood cats out of their yards. Odie's operating information for the first six months of the year follows: Month January February March April May June Number of Bottles Sold 1,000 1,100 1,300 2,000 2,400 3,000 Operating Cost $ 8,000 7,700 9,900 14,000 17,250 20,000 Required: 3. Using the high-low method, calculate Odie's total fixed operating costs and variable operating cost per bottle. 4. Perform a least-squares regression analysis on Odie's data. 5. Determine how well this regression analysis explains the data. 6. Using the regression output, create a linear equation (y a+ bx) for estimating Odie's operating costs.
One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began thelast quarter of 2020 (October to December) with 25 Starburst Wall Clocks at a total cost of $153,000.The following transactions took place during the quarter.October 10 100 clocks were purchased on account at a cost of $6,225 each. In addition,One Stop paid $120 cash on each clock to have the inventory shipped fromthe vendor’s warehouse to their warehouseOctober 31 During the month 90 clocks were sold at a price of $8,300 each. (20 of theseclocks sold were on account to a long-standing customer of the business)November 1 A new batch of 60 clocks was purchased at a total cost of $406,500November 10 5 of the clocks purchased on November 1 were returned to the supplier, asthey were damagedNovember 30 The sales for November were 58 clocks which yielded total sales revenue of$498,800December 2 Owing to increased demand, a further 110 clocks were purchased at a cost of$7,400 each and these…
One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began the last quarter of 2020 (October to December) with 25 Starburst Wall Clocks at a total cost of $153,000. The following transactions took place during the quarter.October 10 100 clocks were purchased on account at a cost of $6,225 each. In addition, One Stop paid $120 cash on each clock to have the inventory shipped from the vendor’s warehouse to their warehouseOctober 31 During the month 90 clocks were sold at a price of $8,300 each. (20 of these clocks sold were on account to a long-standing customer of the business)November 1 A new batch of 60 clocks was purchased at a total cost of $406,500November 10 5 of the clocks purchased on November 1 were returned to the supplier, as they were damagedNovember 30 The sales for November were 58 clocks which yielded total sales revenue of $498,800December 2 Owing to increased demand, a further 110 clocks were purchased at a cost of $7,400 each…
One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began the last quarter of 2020 (October to December) with 25 Starburst Wall Clocks at a total cost of $153,000. The following transactions took place during the quarter.October 10 100 clocks were purchased on account at a cost of $6,225 each. In addition, One Stop paid $120 cash on each clock to have the inventory shipped from the vendor’s warehouse to their warehouseOctober 31 During the month 90 clocks were sold at a price of $8,300 each. (20 of these clocks sold were on account to a long-standing customer of the business)November 1 A new batch of 60 clocks was purchased at a total cost of $406,500November 10 5 of the clocks purchased on November 1 were returned to the supplier, as they were damagedNovember 30 The sales for November were 58 clocks which yielded total sales revenue of $498,800December 2 Owing to increased demand, a further 110 clocks were purchased at a cost of $7,400 each…