Financial Accounting Sunrise Electronics has collected the following production data for the lastsix months:Month Units Produced Total Costs ($)July15,00045,000August18,00048,000September 20,00050,000October 16,00046,000November 22,00052,000December 14,00044,000Using the high-low method, calculate the variable cost per unit.a. $0.75b. $1.00c. $1.25d. $1.50

Step 1: Define Variable Cost per Unit Using the High-Low MethodThe high-low method is used to…

Answered: Sunrise Electronics has collected the…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month: Last month, 4,000 units were produced and sold. Required: 1. Classify each of the costs as product cost or period cost. 2. What is the total product cost for last month? 3. What is the unit product cost for last month?
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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
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Harbor Images has collected the following cost data for various levels of activity: Images Created Total Cost $5,700 $6,320 $9,210 $5,250 Month 6,000 7,750 8,100 4,500 August September October November a. Using the high-low method, determine the variable cost per image created and the total fixed cost. (Round your variable cost to 2 decimal places.) Variable Cost Per Image Fixed Cost Per Month b. Estimate the total costs when 6,500 images are created. (Do not round your intermediate calculations.) Total Costs
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STANDARD COSTINGA company produces a product which has a standard variable production cost of $8 per unit made up as follows:$ per unitDirect material $4.60 (2kg X $2.30 per kg)Direct labour $2.10 (0.7 hours X $3.00 per our)Variable overhead $1.30Fixed manufacturing costs are treated as period costs. The following information is availablefor the period just ended.Variable manufacturing cost of sales (at standard cost) $263,520Opening stock of finished goods (at standard cost) $120,800Closing stock of finished goods (at standard cost) $146,080Direct material rice variance $2,571 unfavourableRaw materials used in manufacture (at actual cost) $170,310Direct labour rate variance $4,760 unfavourableDirect labour efficiency variance $3,240 favourableRequired:(a) Determine for the period just ended(i) the number of units produced(ii) the raw material usage variance(iii) the total actual direct labour cost, and(iv) the actual cost per kg of raw material used.
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