Required:If required, round your answers to two decimal places. Enter a "0" if required.1. Determine the cost behavior formula of each resource. Use the high-low method to assess the fixed and variable components.Forklift depreciation:VFYIndirect labor:VFYV$FY$45,000Fuel and oil for forklift:XXX+ $x4.5 ✔ X High-Low Method, Cost FormulasThe controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usageoccurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of the three resourcesand the activity output, as measured by moves for the two different levels, are presented as follows:ResourceForklift depreciation:LowHighIndirect labor:LowHighFuel and oil for forklift:Number of Moves6,50020,0006,50020,0006,50020,000Total Cost$ 1,8001,800$ 74,250135,000LowHighRequired:If required, round your answers to two decimal places. Enter a "0" if required.$ 4,94015,200

High Low Method - This method is used to segregate the variable and fixed cost. This method is…

Required: If required, round your answers to two decimal places. Enter a "0" if required. 1. Determine the cost behavior formula of each resource. Use the high-low method to assess the fixed and variable components. Forklift depreciation: V $ F Y Indirect labor: V $ F Y 45,000 X X + $ 4.5 ✔ X

Required: If required, round your answers to two decimal places. Enter a "0" if required. 1. Determine the cost behavior formula of each resource. Use the high-low method to assess the fixed and variable components. Forklift depreciation: V $ F Y Indirect labor: V $ F Y 45,000 X X + $ 4.5 ✔ X

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

cercise 11-5 (Algo) Volume Trade-Off Decisions [LO11-5] utdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the mpany's most popular models appear below. Selling price per unit Variable cost per unit Plastic injection molding machine processing time. required to produce one unit Pounds of plastic pellets per unit S Which product offers the most profitable use of the plastic pellets? Which product has the largest contribution margin per unit? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 3 Required 4 quired: f we assume that the total time available on the plastic injection molding machine is the constraint in the production ocess, how much contribution margin per minute of the constrained resource is earned by each product? Which product offers the most profitable use of the plastic injection molding machine? If we assume that a severe shortage of plastic pellets has required…
Crane Company has gathered the following information. Units in beginning work in process Units started into production 37,000 Units in ending work in process 7,000 Percent complete in ending work in process: Conversion costs 40 % Materials 100 % Costs incurred: Direct materials $ 72,150 Direct labor $61,100 Overhead $ 101,260
Problem 4-19 (Algo) Variable Costing Income Statement; Reconciliation [LO4-2, LO4-3] During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@$63 per unit) Cost of goods sold (@$35 per unit) Gross margin Selling and administrative expenses* Net operating income $ Units produced Units sold $ *$3 per unit variable; $250,000 fixed each year. The company's $35 unit product cost is computed as follows: Year 1 Year 2 20,000 15,000 Year 1 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($360,000+ 20,000 units) Absorption costing unit product cost 20,000 25,000 945,000 525,000 420,000 295,000 125,000 Year 2 $ 1,575,000 875,000 700,000 325,000 375,000 $ Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the first two years of operations are: $…
Coram Audio makes wireless headphones. Each pair of headphones comes with a travel case. Since its founding, Coram has manufactured its own travel cases. Recently, Holmur Travel Gear (HTG), a local outfitter that manufactures and sells backpacks, tent cases, and so on, contacted Coram and proposed that they produce the headphone travel cases. Based on management experience, Coram's cost per travel case is as follows (based on annual production of 42,000 units). Direct materials $ 10.00 Direct labor 21.20 Variable overhead 6.40 Fixed overhead 4.70 Total $ 42.30 HTG has offered to sell the case to Coram for $39 each. The total order would amount to 42,000 travel cases per year. Coram's management decides that they will make the switch to HTG cases if Coram can save at least $13,000 per year. Accepting the offer would eliminate annual fixed overhead of $79, 800. Required: a. Prepare a schedule that shows the total differential costs. b. Should Coram continue to make the travel cases or…
Material costs Utilities costs Review costs Alternative 1 $86,000 $42,000 $39,000 $49,000 Alternative 2 $86,000 $41,100 $41,100 $49,000 Direct labor costs Identify the costs that are relevant and the costs that are not relevant, given the choice of alternatives. Calculate the differential cost between the alternatives. a. Material cost Utilities cost Review cost Direct labor cost b. Differential cost
Variable costs: Direct materials $0.15 Direct labor 0.06 Variable overhead 0.11 Fixed overhead 0.30 Total cost $0.62
Question attached in image below REQUIRED Complete the valuation of completed and transferred out units. Round to two (2) decimal places. R Opening WIP costs Costs to complete opening WIP - Materials - Conversion
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $138,000 Number of setups 120 Ordering materials 21,600 Number of orders 1,200 Machining 107,100 Machine hours 11,900 Receiving 16,740 Receiving hours 930 Silven produces two models of cell phones with the following expected activity demands: Model X 4,600 80 400 Units completed Number of setups Number of orders Machine hours Receiving hours Required: 6,800 310 Model X Model Y Model Y 9,200 40 800 5,100 620 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned
Problem 5A-8 (Algo) High-Low Method; Predicting Cost [LO5 - 10] Nova Company's total overhead cost at various levels of activity are presented below: Month Machine - Hours Total Overhead Cost April 47,000 $ 201, 500 May 37,000 $ 175, 500 June 57,000 S 227, 500 July 67,000 $ 253, 500 Assume the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 37,000 machine - hour level of activity is: Utilities (variable) S 51, 800 Supervisory salaries (fixed) 66, 000 Maintenance ( mixed) 57,700 Total overhead cost $ 175, 500 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements. Required: Estimate how much of the $253, 500 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $253, 500 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) Using the high-low…
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate compl 2. Compute the contribution margin per unit. [assume direct labor is a fixed cost] 3. Compute the contribution margin per welding hour. [assume direct labor is a fixed cost] 4. Assuming direct labor is a fixed cost: a. Determine the number of WVD drums (if any) that should be purchased and the number of WVD drums and/or bike frames (if any) that should be manufactured. b. What is the increase (decrease) in net operating income that would result from this plan over current operations? 5. Compute the contribution margin per unit. [assume direct labor is a variable cost] 6. Compute the contribution margin per welding hour. [assume direct labor is a variable cost] 7. Assuming direct labor is a variable cost: a. Determine the number of WVD drums (if any) that should be purchased and the number of WVD drums and/or bike frames (if any) that should be manufactured. b.…
What I Know Before we begin this lesson, let us check first your prior knowledge on this module. After taking and checking this short test, take note of the items that you are not able to answer correctly and look for the right answer as you go through this module. Direction: Encircle the letter of the correct answer. 1. What type of cost includes product ingredients and materials? а. fixed b. revenue с. total d. variable 2. What type of cost includes the rental of space? а. fixed b. revenue c. total d. variable 3. What type of cost is the product of the price and the quantity sold? а. fixed b. revenue с. total d. variable 4. What concept is being described when the business will neither earn a profit nor suffer a loss? а. break-even b. loss с. profit d. summit 5. What type of analysis shows equal revenue and total cost? а. break-even b. cost of variable c. profit-loss d. volume of sales
For each of the following independent cases (A to E), compute the missing values in the table: Total Manufacturing Cost Case A B CO C D E Prime Conversion Direct Cost Cost Direct Manufacturing Materials Labor Overhead $ 9,560 $ 16,470 $ 3,950 10,130 41,500 20,500 57,300 110,600 48,750 7,400 12,650 14,400 $ 10,860 25,200 24,300 42,730 69,250 57,500