Napture Rentals operates a boat rental service. Consider the following costs of the company elevant range of 5,000 to 8,000 hours of operating time for its boats. All amounts are in the r. Total costs Variable costs Fixed costs Hours of operating Time 5,000 6,000 $20,000 168,000 ? ? 7,000 ? ? 8,000 ? ?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![HW1-Week 3- Cost behavior
Q1. Napture Rentals operates a boat rental service. Consider the following costs of the company over
the relevant range of 5,000 to 8,000 hours of operating time for its boats. All amounts are in the US
Dollar.
Total costs
Variable costs
Fixed costs
Total costs
Cost per hour
Variable cost
Fixed costs
Total cost per hour
Hours of operating Time
5,000
$20,000
168,000
188,000
?
?
?
6,000
?
?
?
?
?
?
7,000
?
?
?
?
?
?
8,000
?
?
?
?
?
?
Compute the missing amounts, assuming that cost behavior patterns remain unchanged within the
relevant range of 5,000 to 8,000 hours.
Q2. Nooksack Expeditions must pay a license fee of $25,000 per year plus $3 per rafting party to the state's
Department of Natural Resources.
a. Draw the mixed cost behavior graph.
b. Write the total mixed cost equation.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a6ce481-8e10-4fa9-87f1-1016da64fd41%2F00066a7d-2f07-4845-8321-1e9cc44607fb%2Fgjwzg4_processed.jpeg&w=3840&q=75)
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