Supply costs at Coulthard Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,668 $28,350 April 11,464 $28,301 May 11,996 $28,429 June 14,100 $28,934 July 11,728 $28,365 August 11,214 $28,241 September 12,008 $28,432 October 11,699 $28,358 November 11,847 $28,393 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: a. $1.93 per client visit; $28,366 per month. b. $0.82 per client visit; $18,492 per month. c. $0.28 per client visit; $25,045 per month. d. $0.24 per client visit; $25,550 per month.

Supply costs at Coulthard Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,668 $28,350 April 11,464 $28,301 May 11,996 $28,429 June 14,100 $28,934 July 11,728 $28,365 August 11,214 $28,241 September 12,008 $28,432 October 11,699 $28,358 November 11,847 $28,393 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: a. $1.93 per client visit; $28,366 per month. b. $0.82 per client visit; $18,492 per month. c. $0.28 per client visit; $25,045 per month. d. $0.24 per client visit; $25,550 per month.

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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Assume a company's activity-based costing system Includes three activitles with the following activity rates: Activity Cost Pool Activity Rate $ 2 per mile driven $ 50 per delivery $ 22 per phone call Travel Deliveries Customer service Two of the company's many customers Include Customer A and Customer B. These two customers consumed the company's activitles as follows: Total Expected Activity Customer A Customer B Travel (number of miles driven) 300 250 Deliveries (number of deliveries) Customer service (number of phone calls) 15 5 20 12 How much total activity cost would be assigned to Customer A from the company's three activitles? Multiple Choice $1,680 $1,980 $1,790 $1,690
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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.