Listed here are product costs for the production of soccer balls. Classify each cost (a) as either variable (V) or fixed (F) and (b) as either direct (D) or indirect (I). What patterns do you see regarding the relation between costs classified in these two ways? b. Direct or Indirect Product Cost a. Variable or Fixed 1. Leather covers for soccer balls...... 2. Annual flat fee paid for office security. 3. Coolants for machinery.. 4. Wages of assembly workers. 5. Thread to hold leather together.......... 6. Taxes on factory 7. Machinery depreciation (stralght-line) ..... .*

Listed here are product costs for the production of soccer balls. Classify each cost (a) as either variable (V) or fixed (F) and (b) as either direct (D) or indirect (I). What patterns do you see regarding the relation between costs classified in these two ways? b. Direct or Indirect Product Cost a. Variable or Fixed 1. Leather covers for soccer balls...... 2. Annual flat fee paid for office security. 3. Coolants for machinery.. 4. Wages of assembly workers. 5. Thread to hold leather together.......... 6. Taxes on factory 7. Machinery depreciation (stralght-line) ..... .*

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1MC: The amount of a units sales price that helps to cover fixed expenses is its ____________________. A....

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Listed here are product costs for the production of soccer balls. Classify each cost (a) as either variable(V) or fixed (F) and (b) as either direct (D) or indirect (I). What patterns do you see regarding the relationbetween costs classified in these two ways?Product Cost 1. Leather covers for soccer balls . . . . . . . . . . . . . . . . . . . . . .2. Annual flat fee paid for office security3. Coolants for machinery4. Wages of assembly workers5. Thread to hold leather together6. Taxes on factory .7. Machinery depreciation (straight-line) .
For questions 5-6, please classify the costs of each of the following as variable, fixed, mixed, or step. Sales volume is the cost driver. 5. Real estate taxes A) Variable В) Fixed C) Mixed D) Step Your answer is Explain your answer: 6. Electric power in a factory A) Variable B) Fixed с) Mixed D) Step Your answer is Explain your answer:
Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and Product B, which sells for $800 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows: Usage by Product A Usage by Product B Cost Design (Engineering Hours) Machining (Machine Hours) Inspection (Batches) $ 190,000 $1,800,000 $ 108 142 2,160 2,840 160,000 42 38 8 Atlanta manufactures 12,500 units of Product A and 10,200 units of Product B per month. Each unit of Product A uses $100 of direct materials and $45 of direct labor, while each unit of Product B uşes $140 of direct materials and $75 of direct labor.
Identify each cost below as variable (V), fixed (F), or mixed (M), relative to units sold. Explain your reasons Reason $ M Units Sold a. Total phone cost b. Materials cost per unit C. Manager's salary d. Depreciation cost per unit e. Total utility cost f. Total cost of goods sold 25 150 $ 35 3,000 60 400 3,125 50 200 $ 35 3,000 75 100V, F, or M 250 $ 300 35 35 3,000 3,000 2015 900 1,150 9,375 12,500 F 30 650 6,250 reasons 1. Does not change in total over wide ranges of volume/inversely proportional to the number of units produced while total cost remains constant. 2- It is directly proportional to the number of units produced. The total cost changes as volume changes and in direct proportion. 3-The total cost changes as volume changes, but not in direct proportion.
Given below is the price-demand equation for the production of tennis shoes where x is the number of pairs of tennis shoes that can be sold at a price of $p dollars. p = 40 − x (a) Determine the revenue function and the marginal revenue function.
Exercise 10-32 (Algo) Activity-Based Costing of Customers (LO 10-3, 4) Northwestern Bank (NB) offers only checking accounts. Customers can write checks and use a network of automated teller machines. NB earns revenue by investing the money deposited; currently, it averages 4.1 percent annually on its investments of those deposits. To compete with larger banks, NB pays depositors 0.3 percent on all deposits. A recent study classified the bank's annual operating costs into four activities. Activity Using ATM Visiting branch Processing transactions Managing functions Total overhead Cost Driver Number of uses Number of visits Number of transactions Total deposits Cost $ 1,936,800 1,900,800 8,521,920 7,321,600 $ 19,681,120 Driver Volume 3,228,000 uses 396,000 visits 129,120,000 transactions $ 615,035,000 in deposits Data on two representative customers follow: Emily Jacob ATM uses 40 130 Branch visits 5 Number of transactions Average deposit 200 45 520 $ 10,000 $ 10,000
Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. ( Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.)a. Assume that only one product is being sold in each of the four following case situations:Contribution Net OperatingUnits Variable Margin Fixed IncomeCase Sold Sales Expenses per Unit Expenses (Loss)1 .......... 15,000 $180,000 $120,000 ? $50,000 ?2 .......... ? $100,000 ? $10 $32,000 $8,0003 .......... 10,000 ? $70,000 $13 ? $12,0004 .......... 6,000 $300,000 ? ? $100,000 $(10,000)
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1 For each of the following costs, identify the cost behavior as variable, mixed, or fixed: 1. Wages of assembly line workers 2. President's salary. 3. Plant utilities, 4. Sales force commissions 5. Shipping costs 6. Factory rent. 7. Research and development expenses 8. Property taxes 9. Advertising. 10. Supplies used in production
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Can you classify the expenses listed as Variable or Fixed Costs?
Howard Cooper, the president of Vernon Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative Required A Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 42,000 hours of services in Year 3. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Vernon charges customers $83 per hour, the firm can achieve 52,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same consultant also suggests that if…