Rooney Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in thespring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activityoccurred in June when it produced 203 boats at a total cost of $157,530. The low point in production occurred in January when itproduced 30 boats at a total cost of $52,000.Requireda. Use the high-low method to estimate the amount of fixed cost incurred each month by Rooney Boat Company.b. Determine the total estimated cost if 170 boats are made.a.b.Fixed costTotal estimated cost

Variable cost is the cost that changes with change in activity of cost driver used. The variable…

Answered: Rooney Boat Company makes inexpensive…

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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Western Trucking operates a fleet of delivery trucks. The fixed expenses to operate the fleet are $80,910 in March and rose to $93,120 in April. It costs Western Trucking $0.14 per mile in variable costs. In March, the delivery trucks were driven a total of 87,000 miles, and in April, they were driven a total of 97,000 miles. Using this information, answer the following: A. What were the total costs to operate the fleet in March and April, respectively? March April Total cost $fill in the blank 1 $fill in the blank 2 B. What were the cost per mile to operate the fleet in March and April, respectively? If required, round your answers to nearest cent. March April Cost per mile $fill in the blank 3 $fill in the blank 4
Vernon Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activity occurred in June when it produced 205 boats at a total cost of $163,890. The low point in production occurred in January when it produced 38 boats at a total cost of $52,000. Required a. Use the high-low method to estimate the amount of fixed cost incurred each month by Vernon Boat Company. b. Determine the total estimated cost if 110 boats are made. a. Fixed cost b. Total estimated cost
ewer D) Portis, Inc. reported sales of $8,000,000 for the month and incurred variable totaling $5,600,000 and fixed expenses totaling $1,440,000. The company has no beginning or ending inventories. A total of 80,000 units were produced and sold last month. (Note that this is the same data that was provided for the previous question.) How many units would the company have to sell to achieve a desired profit of $1,200,000? expenses 88,000 A) 100,000 B) 106,668 C) 150,000 D) Inn renorted sales of $8.000,000 for the month and incurred variable expenses nu hor no
I. O'Toole Glassworks, Co. in Dublin, Ireland, is a manufacturer of glass bottles. The company has been affected by competition from plastic bottles and is currently operating at between 65 and 70 percent of maximum capacity. The company at present reports profits on an absorption costing basis but with the high fixed costs associated with the glass container industry and a substantial difference between sales volumes and production in some months, the accountant has been criticized for reporting widely different profits from month to month. To counteract this criticism, he is proposing in future to report profits based on marginal costing and in his proposal to management lists the following reasons for wishing to change (currency in Euro, €): A. Marginal costing provides for the complete segregation of fixed costs, thus facilitating closer control of production costs." B. It eliminates the distortion of interim profit statements which occur when there are seasonal fluctuations in…
Pena Co. manufactures concert merchandise. During the most productive month of the year, 6,000 hoodies were manufactured at a total cost of $161,600. In its slowest month, the company made 2,800 hoodies at a cost of $104,000. Using the high-low method of cost estimation, total fixed costs are: $53,600 $28,600 $58,000 Cannot be determined from the data given
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Po.25.
Whipple Company has sales revenue of $585,000. Cost of goods sold before adjustment is $335,000. The company uses machine hours to allocate manufacturing overhead and estimated 10,450 machine hours would be used during the year. For the year, manufacturing overhead was under-allocated by $13,400. The company's actual manufacturing overhead is $91,000. What is the actual gross profit? Select one: a. $250,000 b. $159,000 c. $236,600 d. $104,400 e. $263,400
Vinubhai
Need help with this problem (number 27). Need help with the blank data. Thanks!
Jefferson Company has a single product whose selling price is $ 200 per unit; variable is $80 per unit and fixed expenses totaling $60,000. A total of 600 units were produced and sold last month. The company has no beginning or ending inventories. What is the company's margin of safety in dollars?

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