Supply costs at Lattea Corporation's chain of gyms are listed below: Supply Cost $28,561 $28,395 March. April. May June. July. August.. September. October November.. Client-Visits 11,647 11,443 11,975 12,088 11,707 11,193 11,987 11,678 11,826 $28,819 $28,892 $28,622 $28,221 $28,820 $28,578 $28,703 Management believes that supply cost is a mixed cost that depends on client-visits. Using the high-low method to estimate the variable and fixed components of this cost, those estimates would be closest to: O $2.44 per client-visit; $28,623 per month O $1.33 per client-visit; $12,768 per month O $0.79 per client-visit; $19,321 per month O $0.75 per client-visit; $19,826 per month

Supply costs at Lattea Corporation's chain of gyms are listed below: Supply Cost $28,561 $28,395 March. April. May June. July. August.. September. October November.. Client-Visits 11,647 11,443 11,975 12,088 11,707 11,193 11,987 11,678 11,826 $28,819 $28,892 $28,622 $28,221 $28,820 $28,578 $28,703 Management believes that supply cost is a mixed cost that depends on client-visits. Using the high-low method to estimate the variable and fixed components of this cost, those estimates would be closest to: O $2.44 per client-visit; $28,623 per month O $1.33 per client-visit; $12,768 per month O $0.79 per client-visit; $19,321 per month O $0.75 per client-visit; $19,826 per month

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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Home Depot Pleasanton Gardening Center needs to determine the ordering policy in the ERP system for a new retaining wall blocks. The demand forecast for the new blocks is about 1,000 units annually. To help you get a handle on the carrying and ordering costs, accounting department has given you the list of last year’s spending within warehouse and purchasing division. COST ITEM COST ($) COST ITEM COST ($) Taxes for the warehouse 2,000 Warehouse supplies 280 Receiving and incoming inspection 1,500 Research and development 2,750 New product development 2,500 Purchasing salaries & wages 30,000 Acct. Dept. costs to pay invoices 500 Warehouse salaries & wages 12,800 Inventory insurance 600 Pilferage of inventory 800 Product advertising 800 Purchase order supplies 500 Spoilage 750 Inventory obsolescence 300 Sending purchasing orders 800 Purchasing Dept. overhead 1,000 Accounting department…
Deliveries to the retailers Sh.so 2,400,000 Set-up costs 6,000,000 Purchase order costs 3,600,000 Total overheads 12,000,000 All director labor is paid at $ 5 per hour. The company holds no inventories. Required: a. Calculate the total profit on each of General Motor's three types of products using each of the following methods: 1. The existing method based upon labor hours 2. Activity based costing
1. Fruit Tea's data show the following information: Aug. 25,000 31 1.75 Estimated sales (units) Sales price per unit Direct labor per unit unit $ $ Labor rate per hour $ C. Direct materials budget d. Direct labor budget Sept. 25,000 31 $ $ $ 21 $ Nov. Dec. 27,500 28,000 $ $ 31 $ 31 1.75 $ 1.75 $ 1.50 $ 1.50 $ 1.50 1.50 $ 21 $ 24 $ 24 $ 24 Oct. 27,000 31 New machinery will be added in October. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next month's requirements. Direct material requires 2.5 pounds per unit at a cost of $5 per pound. The ending inventory required for direct materials is 20% of the next month's needs. In August, the beginning inventory is 3,750 units of finished goods and 13,125 pounds of materials. For the first quarter ending in October prepare a: a. Sales budget b. Production budget 4
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20. Andrew, marketing clerk for Shine Agency, recorded the following information for last year: Month Number of Customers Customer Service Costs January 356 $ 527,233 February 417 544,335 March 338 482,655 April 526 668,050 May 400 530,500 June 457 656,910 July 366 543,770 August 495 680,400 September 345 487,230 October 531 712,325 November 443 629,030 December 415 542,000 He would like to be able to estimate customer service costs using the number of customers as the basis for estimation. However, because he has never taken a course in managerial accounting, he does not know how to set up a cost equation. He has therefore approached you for help. Required: 1. Set up a cost equation for monthly customer service costs using the high–low method.
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Sugar Magnolia Company operates a cafeteria for its employees. The number of meals served each week over the last seven weeks, along with the total costs of operating the cafeteria are given below: Meals Served Cafeteria Costs Week 1 1,625 $5,080 Week 2 1,325 $3,980 Week 3 1,550 $4,940 Week 4 1,400 $4,700 Week 5 1,650 $5,100 Week 6 1,800 $5,380 Week 7 1,975 $5,540 Week 8 2,000 $5,640 Assume that the relevant range includes all of the activity levels mentioned in this problem. Using the high-low method: the variable cost per meal served in the cafeteria would be estimated to be: $_____________________________ b.) the estimated fixed cost per week is: $______________________________
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The following cost data pertain to the operations of Quinonez Department Stores, Incorporated, for the month of September. Corporate headquarters building lease $ 78,000 Cosmetics Department sales commissions-Northridge Store $ 5,270 Corporate legal office salaries $ 66,500 Store manager's salary-Northridge Store $ 12,200 Heating-Northridge Store $ 20,400 Cosmetics Department cost of sales-Northridge Store $ 39,100 Central warehouse lease cost $ 9,800 Store security-Northridge Store $ 16,200 Cosmetics Department manager's salary-Northridge Store $ 4,310 The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?
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