Presented below is the production data for six months of the year showing the mixed costs incurred by Kennedy Company. Month Cost Units July $6,000 4,000 August $10,250 6,500 September $10,500 8,000 October $12,700 10,500 November $14,000 12,000 December $10,850 9,000 Kennedy Company uses the high-low method to analyze mixed costs. The total fixed cost is a. $10,417 b. $2,000 c. $4,500 d. $10,500

Presented below is the production data for six months of the year showing the mixed costs incurred by Kennedy Company. Month Cost Units July $6,000 4,000 August $10,250 6,500 September $10,500 8,000 October $12,700 10,500 November $14,000 12,000 December $10,850 9,000 Kennedy Company uses the high-low method to analyze mixed costs. The total fixed cost is a. $10,417 b. $2,000 c. $4,500 d. $10,500

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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