Orion Manufacturing uses the high-low method for cost estimation. At its lowest production level of 8,000 units, total manufacturing costs were $45,000. At its highest production level of 15,000 units, total manufacturing costs were $73,500. What would Orion estimate as its fixed manufacturing costs?
Q: Financial Accounting Question please answer
A: Step 1: Definition of Contribution Margin (CM) RatioThe Contribution Margin (CM) Ratio is a…
Q: A warehouse with an appraisal value of $145,320 is made available at an offer price of $168,750. The…
A: Explanation of Cost Basis:The cost basis is the total amount a buyer actually pays to acquire an…
Q: Total costs were $82,500 when 30,000 units were produced and $102,000 when 40,000 units were…
A: Step 1: Introduction to cost of a productThe cost of a product refers to the total amount of…
Q: Choose the right option
A: Step 1: DefinitionExplanation Straight-line depreciation: Straight-line depreciation allocates an…
Q: provide correct answer
A: Ranking Projects Using the Profitability Index (PI)Step 1:Let's Understand the Profitability Index…
Q: How is the income statement of a merchandising company different from that of a service company?
A: A service company's income statement is relatively straightforward. It typically includes revenue…
Q: I want the correct answer with accounting
A: Step 1: Definition of Fixed CostsFixed Costs are business expenses that do not change with…
Q: Get correct answer with accounting
A: Step 1: Definition of Freight-InFreight-In refers to the transportation cost incurred by a buyer to…
Q: Give me Correct Answer
A: Concept of Make-or-Buy Decision:A make-or-buy decision is a managerial choice between manufacturing…
Q: Brightline Inc. uses direct labor hours to apply overhead. • Estimated DLH = 15,000 hours •…
A: Compute the Predetermined Overhead RateThe predetermined overhead rate (POHR) is calculated as:POHR…
Q: Calculate the total number of units sold
A: Explanation of Sales Compensation :Sales compensation refers to the total monetary package paid to…
Q: No AI Answer
A: Concept of Traditional CostingTraditional costing is a method of allocating manufacturing overhead…
Q: Solve this general accounting problem ASAP
A: Explanation of National Income: National income represents the total value of goods and services…
Q: what is the correct option? general accounting question
A: Step 1: Define Gross ProfitGross Profit is the amount of revenue that remains after deducting the…
Q: What is Carter's net pay
A: Concept of Gross Earnings:Gross earnings refer to the total amount of money an employee earns before…
Q: A company has a return on equity of 18%, and its total equity is $820.5. What is the net income?
A: Net Income = Return on Equity * Total Equity Net Income = 18%*820.5 Net Income = $147.69
Q: what is the fixed cost per month? accounting question
A: To determine the fixed cost per month, we use the high-low method to separate fixed and variable…
Q: Financial accounting question
A: Step 1: Definitions Concept of Equivalent Units of Production (EUP):Equivalent Units of Production…
Q: Olivia, single and age 58, sold her home for $485,000 after living there for 10 years. Her selling…
A: Explanation of Adjusted Basis:The adjusted basis is the original purchase price of a property plus…
Q: Pinnacle Labs had the following earnings before tax (EBT) history. The tax rate is 35%. . 2018:…
A: Step 1: Definition of Tax Paid (with Loss Carryforward)Tax Paid is the amount owed on taxable…
Q: general accounting
A: Step 1: Definition of Labour Price VarianceLabour Price Variance (also called Labour Rate Variance)…
Q: can you help me with this General accounting question
A: Step 1: Define Effective Interest Rate (Discounted Loan)The Effective Interest Rate (EIR) for a…
Q: Need answer now . hello
A: 1.1.13 Accounting:The correct answer is:b) Relative sales value method1.1.14 Income or Loss…
Q: Foreign currency translation—Comprehensive income A U.S.-based parent company acquired a European…
A: Step-by-step solution: We are told the subsidiary's functional currency is the Euro, so we will use…
Q: Contribution margin ratio?
A: Explanation of Selling Price:The selling price is the amount a company charges its customers for one…
Q: Hi experts please provide answer this financial accounting question
A: Step 1: Definition of Common-Size PercentageA common-size percentage expresses a line item as a…
Q: Dept ratio is given in this qu
A: The debt-equity ratio is a financial ratio indicating the relative proportion of shareholders'…
Q: Lucy Company, Inc. had $812,000 in sales, sales discounts of $12,180, sales returns and allowances…
A: Step 1: DefinitionsConcept of Gross Profit:Gross profit is the amount a company earns from its core…
Q: A company purchases depreciable equipment for $215 and sells it a few years later for $180. At the…
A: Explanation of Original Purchase Price:The original purchase price refers to the amount paid by a…
Q: financial account
A: Step 1: Definition of Operating LeverageOperating Leverage measures how sensitive a company's…
Q: Solve this accounting questions properly without use of ai
A: The cost of goods sold (COGS) is calculated by adding the beginning inventory and purchases, then…
Q: Accounting solution and question
A: Step 1: Definition of Gross Profit MarginGross Profit Margin is a profitability ratio that shows the…
Q: Value of inventory?
A: Step 1: Definitions Concept of Lower of Cost or Market (LCM):The Lower of Cost or Market rule is a…
Q: what is the overhead at the end of the year?
A: Step 1: Definition of Overhead VarianceOverhead variance is the difference between the applied…
Q: Solve this accounting question i need help today.
A: 1.1.13 Answer: b) Relative sales value method (This method is commonly used to allocate joint…
Q: Please provide answer this financial accounting question not use chatgpt
A: Step 1: Define Free Cash Flow (FCF)Free Cash Flow (FCF) is the cash a company generates from its…
Q: Financial Accounting question.
A: Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) is a financial ratio that…
Q: What is the profit margin??
A: Return on Investment = Profit Margin * Investment Turnover 24% = Profit Margin*1.6 Profit Margin =…
Q: General accounting
A: Determine the Contribution Margin per UnitThe contribution margin per unit is calculated…
Q: Malek Events Catering uses the high-low method to predict its total overhead costs. Past records…
A: Explanation of High-Low Method:The high-low method is a cost estimation technique used to separate…
Q: Expert need your help
A: Concept of Sales:Sales refer to the total revenue generated from the goods or services sold by a…
Q: What is the amount of equity
A: Concept of AssetsAssets are everything a company owns that has value and can generate future…
Q: Financial accounting question
A: Step 1: Define Interest Tax ShieldThe Interest Tax Shield is the reduction in taxable income…
Q: What is the total expected cash receipts
A: Explanation of Cash Sales:Cash sales refer to the portion of total sales that are paid for…
Q: Total costs were $82,500 when 30,000 units were produced and $102,000 when 40,000 units were…
A: Explanation of High-Low Method :The high-low method is a cost estimation technique that uses two…
Q: I need help with accounting
A: Step 1: Definition of Contribution Margin (Percentage)Contribution Margin Percentage is the ratio of…
Q: I need help with this solution and general accounting
A: Step 1: Definition of Overhead Variance (Underapplied or Overapplied)Overhead variance measures the…
Q: What was the standard rate for September on these general accounting question?
A: Step 1: Definition of Standard RateStandard Rate refers to the predetermined cost per labor hour…
Q: Need to correct answer general accounting question
A: Step 1: Definition of Bad Debt ExpenseBad Debt Expense is the estimated amount of accounts…
Q: None
A: Concept of AssetsAssets are resources owned by a company that have economic value and are expected…
Need help with this question solution general accounting
Step by step
Solved in 2 steps
- Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?Abdulwahab Corporation is estimating the cost function for total cost of production of product A using the high-low method. The data collected for the past year is as following: Number of units Total Quarter produced Costs 1 4,000 $ 1,000 2 5,400 1,280 3 7,000 1,600 4 9,000 2,000 Calculate the following amounts: The variable cost per unit The fixed cost Explain the method used by the company to estimate the cost function. Suggest other methods than may be used to estimate cost function.Anderson Inc. has decided to use the high-low method to estimate total costs and determine the fixed and variable cost components. The data for various levels of production are as follows: When 6,500 units were produced, the total cost was $420,000. When 2,500 units were produced, the total cost was $250,000. (a) Determine the variable cost per unit and the total fixed cost. Variable cost per unit: Total fixed cost: (b) Estimate the total cost for producing 3,200 units. Total cost for 3,200 units:
- What is the manufacturing cost per unit?Carla Vista Manufacturing manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 2,900 units. The company's Utilities and Maintenance costs are mixed costs. The fixed portions of these costs are $390 and $290, respectively. Calculate the expected costs to be incurred when production is 4,900 units. Use your knowledge of cost behavior to determine which of the other costs are foxed or variable. Production in Units Production Costs a. Direct Materials b. Direct Labor c. Utilities d. Rent e. Indirect Labor f. Supervisory Salaries & Maintenance 2,900 $ 8,961 23,461 1,666 3,900 6,351 2,400 1,711 Costs Incurred $ 4,900 Type of cost 10 0000 FLark would estimate fixed costs as .....?
- The absorption costing concept?Please Provide Correct AnswerTaunton Company uses the high-low method to estimate its cost function. The information for 2017 is provided below: Machine-hours Labor Costs Highest observation of cost driver 3,000 $300,000 Lowest observation of cost driver 2,500 $277,500 What is the constant for the estimated cost equation?
- Pavilion Company is using the high-low method to determine the fixed and variable components of its utilities expense, a semivariable cost. Pavilion Company believes direct labor hours is the best activity to measure the cost. In its low month, there were 1,600 direct labor hours and utilities expense was $8,000. In its high month, there were 3,600 direct labor hours and utilities expense was $12,000. Using the high-low method, what is the fixed cost per month, rounded to the nearest whole dollar? $0 $9,231 $4,000 $4,800What is the production cost per unit?Glisan Corporation's relevant range of activity is 4,300 units to 8,300 units. When it produces and sells 6,300 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,300 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,300 units? c. If 5,300 units are sold, what is the total amount of variable costs related to the units sold? d. If the selling price is $24.35 per unit, what is the contribution margin per unit sold? Note: Round "Per unit" answer to 2 decimal places. e. What incremental manufacturing cost will the company incur if it increases production from 6,300 to 6,301 units? Note: Round "Per unit" answer to 2 decimal places. a. Total…