None Supply costs at Coulthard Corporation's chain of gyms are listed below:Client-Visits Supply CostMarch11,651$28,481April11,447$28,366May11,979$28,664June12,400$28,900July11,711$28,514August11,197$28,226September 11,991$28,671October 11,682$28,498November 11,830$28,581Management believes that supply cost is a mixed cost that depends on client visits. Use thehigh-low method to estimate the variable and fixed components of this cost. Compute thevariable component first. Then compute the fixed component. Those estimates are:a. $2.25 per client visit; $28,515 per month.b. $1.14 per client visit; $14,898 per month.c. $0.60 per client visit; $21,451 per month.d. $0.56 per client visit; $21,956 per month.

Step 1: Introduction to the Activity-Based CostingUnder activity-based costing, businesses use…

Answered: Supply costs at Coulthard Corporation's…

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...

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Supply costs at Coulthard Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 12,855 $ 23,598 April 12,283 $ 23,278 May 13,104 $ 23,742 June 12,850 $ 23,607 July 12,493 $ 23,415 August 12,794 $ 23,562 September 12,686 $ 23,496 October 12,765 $ 23,541 November 13,018 $ 23,687 Management believes that supply cost is a mixed cost that depends on client-visits. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first, rounding off to the nearest whole cent. Then compute the fixed component, rounding off to the nearest whole dollar. Those estimates are closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1.85 per client-visit; $23,547 per month $1.77 per client-visit; $557 per month $0.57 per client-visit; $16,273 per month $0.55 per client-visit; $16,579 per month
Activity Rate Travel Deliveries $2 per mile driven. $ 50 per delivery $ 22 per phone call Customer service Two of the company's many customers include Customer A and Customer B. These two customers consumed the company's activities as follows: Total Expected Activity Customer A Customer B 250 5 12 Activity Cost Pool Travel (number of miles driven) Deliveries (number of deliveries) Customer service (number of phone calls) How much cost would be assigned from the Travel activity to Customer A? Multiple Choice $170 $60 $680 340 15 20
Ivanhoe Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $296,000 $504,000 $200,000 Variable expenses 151,100 203,300 138,600 Contribution margin 144,900 300,700 61,400 Fixed expenses 116,616 228,184 93,900 Net income $28,284 $72,516 $(32,500) Fixed expenses consist of $296,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $79,000 (Shocker), and $34,700 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out.James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company’s net income.(a)Compute current net income for Ivanhoe Company. Net income $ (b)Compute net income by product line…
Sandhill Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $296,000 $504,000 $200,000 Variable expenses 151,700 207,900 138,200 Contribution margin 144,300 296,100 61,800 Fixed expenses 117,800 231,800 95,000 Net income $26,500 $64,300 $(33,200) Fixed expenses consist of $300,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $80,600 (Shocker), and $35,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. (a) Compute current net income for Sandhill Company. Net income A
Please I will need A. The total cost of all orders. B. The total quantity of airframe fasteners purchased. C. The total cost of all orders placed with Manley Valve.
Question 2: Bed and Bath, a retailing company has two departments, Hardware and Linens. The company's most recent monthly contribution format income statement is given below: Department Total Hardware Linens Sales $40,00,000 $30,00,000 $10,00,000 Variable expenses 13,00,000 9,00,000 4,00,000 Contribution Margin Fixed expenses 21,00,000 14,00,000 $700,000 600,000 27,00,000 22,00,000 $5,00,000 800,000 ($200,000) Net Operating Income A study indicates that, $340,000 of the fixed expenses charged to Lines are sunk costs or allocated cost that will continue to incur even if the Linens department is dropped. In addition, the elimination of the Lines department will result in a 10% increase in the sales of the Hardware department. Required : If the Linens Department is dropped, what will be the effect on the net operating income of the company as a whole?[
Problem 1. Mahinahon Company would like to institute an activity-based costing system to price products. The company's Purchasing Department incurs costs of P550,000 per year and has six employees. Purchasing has determined the three major activities that occur during the year. Activity Allocation Measure # of People Total Cost Issuing purchase orders # of purchase orders 1 P285,000 Reviewing receiving reports # of receiving reports 2 P190,000 Making phone calls # of phone calls 3 P220,000 During the year, 50,000 phone calls were made in the department; 15,000 purchase orders were issued; and 10,000 shipments were received. Product A required 200 phone calls, 150 receiving reports, and 50 purchase orders. Product B required 350 phone calls, 400 receiving reports, and 100 purchase orders. 1Determine the amount of purchasing department cost that should be assigned to each of these products. 1.2. Determine purchasing department cost per…
ABC Company has an ABC system with three pools: Total cost in cost pool Total $13,000 Activity Product X Machine setups Customer service Maintenance Cost Driver Product Y #setups #orders machine- hours $6,000 $10,000 Compute total capacity costs allocated to product X. Group of answer choices $29,000 $9,000 $18,500 $5,000 not enough information Activity volume (#cost driver units) 45 15 25 20 65 5 20 25 50
Please give answers clearly. thank you.
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,070 15,158 April 2,688 10,482 May 2,870 12,037 June 3,847 17,906 Oa. $1.09 Ob. $1.56 Oc. $0.16 Od. $1.05
Lucido Products markets two computer games: Clalmjumper and Makeover. A contribution format Income statement for a recent month for the two games appears below: Claimjumper $ 116,000 35,800 $ 8e, 200 Makeover $ 58,000 7,700 $ 50, 300 Total $ 174,809 43,5ee 130, see Sales Variable expenses Contribution margin 88,425 $ 42,075 Fixed expenses Net operating income Required: 1. What is the overall contribution margin (CM) ratio for the company? 2 What Is the company's overall break-even polnt in dollar sales? 3. Prepare a contribution format Income statement at the company's break-even polnt that shows the appropriate levels of sales for the two products. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's overall break-even point in dollar sales? (Do not round intermediate calculations.) Overall break-even point
Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses activity-based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has an activity rate of 20 per sales order, and the customer return activity has an activity rate of 100 per return. Jungle Junior sold 2,500 swing sets, which consisted of 750 orders and 80 returns. Determine (A) the total and (B) the per-unit sales order processing and customer return activity cost for swing sets.

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