Sandhill Company accumulates the following data concerning a mixed cost, using units produced as the activity level.MarchAprilMayJuneJuly(a1)Units Produced10,070(22)9,10010,6008,9109,660Your answer is correct.Unit variable costsFixed coste Textbook and Media$Total CostCompute the unit variable costs using the high-low method. (Round answer to 2 decimal places e.g. 2.25.)$$17,24416,070x Your answer is incorrect.17,59815,57016,450Compute the fixed costs using the high-low method.1.20211350Attempts: 1 of 3 used

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

Answered: Sandhill Company accumulates the…

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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The following data have been extracted from the records of Puzzle Incorporated: February August Production level, in units 9,400 20,680 Variable costs $ 22, 560 $ ? question mark Fixed costs ? question mark 39, 300 Mixed costs 19, 612 ? question mark Total costs $81,472 $ 125, 238 Required: Calculate the missing costs. Calculate the cost formula for mixed cost using the high-low method. Calculate the total cost that would be incurred for the production of 15, 040 units. Identify the two key cost behavior assumptions made in the calculation of your answer to part c.
Following are utilities costs for different level of machine hours: $225 for 5 hours; $230 for 6 hours; $235 for 7 hours; and $240 for 8 hours. This cost is best described as Select one: Oa. Variable Ob. Mixed Oc Fixed O d. Direct Oe. None of the answers given Next page
Adams, Inc. has the following cost data for Product X, and unit product cost using absorption costing when production is 2,000 units, 2,500 units, and 5,000 units. (Click on the icon to view the cost data.) (Click on the icon to view the unit product cost data.) Product X sells for $175 per unit. Assume no beginning inventories. Read the requirements. Data table Begin by selecting the labels and computing the gross profit for scenario a. and then compute the gross profit for scenario b. and c. Absorption costing a. b. C. Gross Profit Reference 2,000 units 2,500 units 5,000 units 42 $ 42 52 52 11 11 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit product cost Print $ $ 42 S 52 11 10 115 $ Done 8 113 $ 4 109 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Print Done $42 per unit 52 per unit 11 per unit 20,000 per year
Question: Warner Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 2,070 1,200 $210,500 158,400 3,200 Required: 246,400 a) Determine the variable cost per unit and the total fixed cost. (Round to nearest dollar) b) Based on part (a), estimate the total cost for 1,580 units of production.
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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
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,142 15,489 April 2,691 10,041 May 2,810 11,509 4 June 3,881 18,009 a. $0.15 b. $1.05 O c. $1.64 Od. $1.01 10:21 PM 670002 K 63°F
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Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,002 15,174 April 2,664 9,624 May 2,823 12,276 June 3,621 17,777 a.$1.17 b.$0.70 c.$0.66 d.$0.12
Deidoro Company has provided the following data for maintenance cost: Machine hours Maintenance cost Multiple Choice Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are closest to: (Round your intermediate calculations to 2 decimal places.) O O Prior Year 17,100 20,100 $ 29,400 $ 34,200 $29,400 per year; $1.701 per machine hour Current Year $2,040 per year; $1.701 per machine hour $2,040 per year; $1.600 per machine hour $29,400 per year; $1.600 per machine hour
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Felix & Company reports the following information. Period Units Produced Total Costs 1 0 $ 2,900 2 460 3,774 3 860 4,534 4 1,260 5,294 5 1,660 6,054 6 2,060 6,814 7 2,460 7,574 8 2,860 8,334 9 3,260 9,094 10 3,660 9,854 Exercise 21-6A (Algo) Appendix: Measuring costs using regression LO P1 Use spreadsheet software to use ordinary least-squares regression to estimate the cost equation, including fixed and variable cost amounts. Cost equation = + per unit
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years operations: es aw all Variable costs per unit: Manufacturing: Direct materials. Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $53 per unit. Req 1A 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and…

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