VariableCosting Income Statement for a Service CompanyEast Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows:Amount Cost BehaviorCostLabor costs for loading and unloading railcarsFuel costs$175,582 Variable460,226 Variable267,228 Variable118,327Variable194,400Fixed129,600Fixed$1,345,3631Operating statistics from the management information system reveal the following for April:Atlanta/BaltimoreBaltimore/ Pittsburgh/Pittsburgh Atlanta12,83510,200425$600Train crew labor costsSwitchyard labor costsTrack and equipment depreciationMaintenanceNumber of train-milesNumber of railcarsRevenue per railcarLine Item DescriptionRevenuesVariable costs:Labor costs for loading and unloading railcarsFuel costsTrain crew labor costsSwitchyard labor costsTotal variable costs2,160$275Contribution marginContribution margin ratio14,0801,232$440a. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Compute the contribution margin ratio. Rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin.East Coast Railroad CompanyContribution Margin by RouteFor the Month Ended April 30Activity Rate$46.00 per railcar12.40 per train-mile7.20 per train-mile31.00 per railcar%Total37,1153,817Atlanta/ Baltimore/ Pittsburgh/Baltimore Pittsburgh Atlanta96Totalgoodboldgooolblblå%6%

ACTIVITY BASED COSTING Activity Based Costing is a Powerful tool for measuring performance.…

-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows: vior Activity Rate $46.00 per railcar 12.40 per train-mile 7.20 per train-mile 31.00 per railcar wing for April: Total 37,115 3,817 any for the month of April. Compute the contribution margin ratio. Rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin. Pittsburgh/ Atlanta Tota %6

-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows: vior Activity Rate $46.00 per railcar 12.40 per train-mile 7.20 per train-mile 31.00 per railcar wing for April: Total 37,115 3,817 any for the month of April. Compute the contribution margin ratio. Rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin. Pittsburgh/ Atlanta Tota %6

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Voltar has collected the following data for recent months Month Miles Driven Total Cost March 41,00O 30,690 April 43,600 44,234 May 35,500 37,000 June 42,400 31,593 Required: a) Using the high-low method, find variable cost per unit, total fixed cost, and total cost equation? b) What is the estimated cost for a month in which 38,000 miles are driven
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6. Atlantic Manufacturing produces and sells children’s bikes at an average price of $80. Its costs are as follows: direct materials = $14; direct labour = $8; variable overhead = $3; sales commission is 10% of price. Its fixed monthly costs are $42,000. Required: 1. Using the above cost data, set up a monthly cost equation. 2. What is the company’s contribution margin percentage? (Round your answer to 2 decimal places.)
1. Top-down versus bottom-up estimates. pts. a. Describe the methods and uses of each of the approaches. 2. Compare the advantages and disadvantages of each of the approaches. 3. What are the three types of costs discussed in the text? Define them. 4. For a small project requiring 120 hours at $50/hr and having a direct overhead rate of 40%, calculate the direct cost (Exercise 1 in Chapter 5). To that add indirect costs (G&A) at 20% and then profit at 20% for a total project price. What are the estimated costs for: Design Programming In-house testing Which “approach to estimating” is this? What weaknesses are inherent in this approach? 5. Take another look at Exercise #5. Use Exercise Figure 5.1 on page 160. But now you are asked to do a bottom-up estimate based on the following data and compare it with the top-down estimate of $800,000. If confronted with these two estimates, what, if any, actions would you take? Deliverables Estimated Hours Rate:…
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below. Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 112,000 34,600 $77,400 Makeover $ 56,000 7,400 $ 48,600 Total $ 168,000 42,000 126,000 86,400 $ 39,600 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 11 Required 21 Required 3 Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. (Do not round intermediate calculations, Round your…
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