Maintenance Machine Health Number of Shipping Units Month Costs Hours Insurance Employees Costs Shipped January February $4,500 $4,452 8,600 $8,600 $8,600 $25,776 $29,664 165 68 7,160 120 75 8,240 $4,600 $4,850 $5,166 March 230 92 $28,674 7,965 April May 318 $8,600 105 $23,058 6,405 $8,600 $8,600 $21,294 5,915 9,245 460 89 June $4,760 280 87 $33,282 July August September $4,910 340 $8,600 93 $31,428 8,730 $4,960 360 $8,600 88 $30,294 8,415 $5,070 420 $8,600 95 $25,110 6,975 October $5,250 495 $8,600 102 $25,866 7,185 November $5,271 510 $8,600 97 $20,124 5,590 December $4,760 275 $8,600 94 S34,596 9,610 Required 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. 2. Using the high-low method, determine the cost function for each cost. 3. Combine the preceding information to get a monthly operating cost function for the Stein Corporation. 4. Next month, Stein expects to use 400 machine hours, have 80 employees, and ship 9,000 units. Estimate the total operating cost for the month.

Maintenance Machine Health Number of Shipping Units Month Costs Hours Insurance Employees Costs Shipped January February $4,500 $4,452 8,600 $8,600 $8,600 $25,776 $29,664 165 68 7,160 120 75 8,240 $4,600 $4,850 $5,166 March 230 92 $28,674 7,965 April May 318 $8,600 105 $23,058 6,405 $8,600 $8,600 $21,294 5,915 9,245 460 89 June $4,760 280 87 $33,282 July August September $4,910 340 $8,600 93 $31,428 8,730 $4,960 360 $8,600 88 $30,294 8,415 $5,070 420 $8,600 95 $25,110 6,975 October $5,250 495 $8,600 102 $25,866 7,185 November $5,271 510 $8,600 97 $20,124 5,590 December $4,760 275 $8,600 94 S34,596 9,610 Required 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. 2. Using the high-low method, determine the cost function for each cost. 3. Combine the preceding information to get a monthly operating cost function for the Stein Corporation. 4. Next month, Stein expects to use 400 machine hours, have 80 employees, and ship 9,000 units. Estimate the total operating cost for the month.

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

Required: a) Using Activity Based Costing, calculate the rate for each cost driver. b) Using activity based budgeting, prepare a budgeted yearly operating statement for Aero3D Ltd. Show the following separately, within the statement. i. The budgeted output for each product per year; ii. The contribution to profits for each product and in total before charging activity based costs; iii. The profit for each product and in total after charging activity based costs but before charging core costs (non-activity based costs); iv. The total profit after charging core based costs.
Hh2. Account
Prepare a complete projected income statement in the contribution format for each scenario, in the manner of a flexible budget. Please show work Carolina Manufacturing Company has been operating at a loss for several years. A management team has assembled to determine what course of action to take next year to reach profitability. They begin by reviewing the most recent income statement (below). Carolina Manufacturing Company Income Statement For the Year Ended December 31 Sales (45,000 units at $15) Less cost of goods sold: Net loss Direct materials Direct labor Manufacturing overhea Gross margin Less operating expenses Selling expenses Variable Sales commissions Shipping 135,000 117,450 147,750 Fixed (advertising, salaries) Administrative expenses Variable (billing and other) Fixed (salaries and other) 40,500 8,100 180,000 $675,000 400,200 274,800 228,600 2,700 72,000 74,700 ($28,500)
answer please
Munabhai
Statler Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2021. The following cost and other data were gathered for 2020: (Click the icon to view the cost and other data) Read the requirements. Requirement 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. Cost function Mixed Fixed Variable Cost Maintenance Health insurance Shipping costs Requirement 2. Using the high-low method, determine the cost function for each cost. Begin by selecting the general formula that represents the linear cost function for each cost. y = a +bX y = a y = bX Maintenance Health insurance Shipping costs Now determine the cost function for each cost. (Enter all values in the same format as the general linear formula. If an input field is not used in the Cost function Maintenance Explanation The cost neither remains constant in total nor remains constant per unit. Although the cost driver varies from month to month, the total…
Hi, please help :) Use the appropriate mixed cell references and relative references to reflect the percentages in range A22:B27 to determine the projected expenses for each of the Budgeted Selling and Budgeted Administrative Expenses for the year of 2022.
Crane Company has accumulated the following budget data for the year 2022. 1. Sales: 31,100 units, unit selling price $85. 2. Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $12 per hour, and manufacturing overhead $6 per direct labor hour. 3. Inventories (raw materials only): beginning, 10,100 pounds; ending, 15,100 pounds. 4. Selling and administrative expenses: $170,000; interest expense: $30,000. 5. Income taxes: 20% of income before income taxes.
The May 2024 revenue and cost information for Boise Outfitters, Inc. follows: 1(Click the icon to view the revenue and cost information.) Prepare a standard cost income statement for management through gross profit. Report all standard cost variances for management's use. Has management done a good or poor job of controlling costs? Explain. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) Boise Outfitters, Inc. Standard Cost Income Statement For the Month Ended May 31, 2024 (1) Sales Revenue $540,000 (2) Cost of Goods Sold at standard $344,000 (3) Manufacturing Cost Variances: (4) Direct Materials Cost Variance (5) Direct Materials Efficiency Variance (6) Direct Labor Cost Variance 4,800 (7) Direct Labor Efficiency Variance (8) Variable…
Crystal Mining has completed the following data to analyze utility cost:MonthMachine Hours Utility CostJanuary200P 300February325440March400480April410490May525620June680790July820840August900900Required:1.Use the least squaresmethod to develop a formula for budgeting utility cost. (Round off value of b to two decimal places and the value of a to nearest peso.2.Prepare flexible budget with separate variable and fixed categories for utility costs at 350, 500, and 600 machine hours.
KK ENTERPRISE was set up by a man and his with some few years ago. The trade in a lot of products. They don’t have enough knowledge in accounting for decision making. They need professional assistance to prepare budgets for the period October to December 2020. The following information has been provided to assist in the budgeting process: · Budgeted monthly sales revenue for 2020 is as follows: October GH¢ 40,000, November GH¢ 70,000, December GH¢ 50,000, January 2018 45,000. Sales are 20% cash and 80% credit. Credit sales are collected over a three- month period, 15% in the month of sale, 70% in the month following sale and 15% in the second month following sale. Total sales revenue in August amounts to GH¢30,000 and September’s total sales revenue amounts to GH¢36,000. Cost of sales is expected to amount to 60% of sales revenue each month. The business maintains its closing inventory levels at 75% of the following month’s cost of sales. Inventory at the beginning of October is…
Nathan Davidson, financial analyst at LMN Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Davidson collects the following data on machine-hours worked and utility costs for the past 8 quarters: (Click the icon to view the data.) Read the requirements. Requirement 1. Estimate the cost function for the quarterly data using the high-low method. (Complete all answer boxes.) Data table + Quarter Machine-Hours Utility Costs Quarter 1 100,000 $ 265,000 Quarter 2 55,000 200,000 Quarter 3 90,000 250,000 Quarter 4 105,000 280,000 Quarter 5 70,000 220,000 Quarter 6 95,000 260,000 Quarter 7 85,000 275,000 Quarter 8 80,000 245,000 Print Done - ☑ Requirements 1. Estimate the cost function for the quarterly data using the high-low method. 2. Plot and comment on the estimated cost function. 3. Davidson anticipates that LMN will operate machines for 105,000 hours in quarter 9. Calculate the predicted utility costs in quarter 9 using the cost function estimated…