Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year. Month January February March April May June Number of Appointments 275 250 475 225 200 150 Total Cost $ 6,550 6,400 7,000 5,700 5,300 5,700 Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount. Variable Cost per Unit Fixed Cost
Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year. Month January February March April May June Number of Appointments 275 250 475 225 200 150 Total Cost $ 6,550 6,400 7,000 5,700 5,300 5,700 Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount. Variable Cost per Unit Fixed Cost
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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