Discussion QuestionThe table below shows monthly data collected on production costs and on the number ofunits produced over a twelve month period.MonthTotal ProductionCosts$230,000Level of Activity(Units Produced)July3.500AugustSeptember250,0003.750260,0003.800October220,0003.400November340,0005.800December330,0005.500JanuaryFebruary200,0002,900210,0003.300March240,0003.600Аpril380,0005,900May350,0005,600June290,0005,000 Маy350,0005,600June290,0005,000a) Determine the variable cost per unit and the fixed cost using the high-lowmethod.b) What is the equation of the total mixed cost function?c) Prepare the scatter diagram, clearly showing any outliers.d) Using the line of best-fit, determine the company's fixed cost per month and thevariable cost per unit. (use o9 5,000 units.)e) In view of the department's cost behaviour pattern, which of the two methodsappear more appropriate? Explain your answer,

The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month Total Production Level of Activity (Units Produced) Costs July $230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3.400 November 340,000 5.800 December 330,000 5.500 January February 200,000 2,900 210,000 3.300 March 240,000 3.600 April 380,000 5.900 May 350,000 5,600 June 290,000 5.000

The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month Total Production Level of Activity (Units Produced) Costs July $230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3.400 November 340,000 5.800 December 330,000 5.500 January February 200,000 2,900 210,000 3.300 March 240,000 3.600 April 380,000 5.900 May 350,000 5,600 June 290,000 5.000

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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The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month Total Production Costs Level of Activity (Units Produced) July $ 230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3,300 March 240,000 3,600 April 380,000 5,900 May 350,000 5,600 June 290,000 5,000 Required: Determine the variable cost per unit and the fixed cost using the high-low method. What is the equation of the total mixed cost function? 3. Prepare the scatter diagram, clearly showing any outliers
ader Touch units produced over a twelve month period. Level of Activity (Units Produced) Month Total Production Costs July August September $230,000 3,500 250,000 3,750 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3,300 March 240,000 3,600 April 380,000 5,900 Мay 350,000 5,600 June 290,000 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost function? c) Prepare the seatter diagram, elearly showing any outliers. d) Using the line of best-fit, determine the company's fixed cost per month and the variable cost per unit. (useo55.000 uits ) e) In view of the departnment s cost behaviour pattern, which of the two methods appear imore appropriate Explain vour answer. Type here to sear
The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month Discussion Question July August September October November December January February March April May June Total Production Costs $230,000 250,000 260,000 220,000 340,000 330,000 200,000 210,000 240,000 380,000 360,000 290,000 Level of Activity (Units Produced) 3,500 3,750 3,800 3,400 5,800 5,500 2,900 3,300 3,600 5,900 5,600 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost function? c) Based on the High-Low method, what is the total production costs if 6,500 units are produced? d) Prepare the scatter diagram and insert the trendline or line of best-lit. Use a scale of 2 cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the y- e) Using the line of best fit delermine the company's lixed cost per month and the variable cost per unit (Use 0 &…
The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Level of Activity (Units Produced) Month Total Production Costs July $230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3,300 March 240,000 3,600 April 380,000 5,900 Мay 350,000 5,600 June 290,000 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost function? c) Prepare the scatter diagram and insert the trendline or line of best-fit. use a scale of 2 cm to represent 1,000 units on the x-axis § 2 cm to represent $50,000 on the y- axís. d) Using the line of best-fit, determine the company's fixed cost per month and the variable cost per unit. (use og 5,000 units.) e) Which of the two methods appear more appropriate? Explain your answer.
The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Level of Activity (Units Produced) Month Total Production Costs July $230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3:300 March 240,000 3,600 Аpril 380,000 5,900 Мay 350,000 5,600 June 290,000 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost function? c) Prepare the scatter diagram, clearly showing any outliers. d) Using the line of best-fit, determine the company's fixed cost per month and the variable cost per unit. (use o 5 5,000 units.) e) In view of the department's cost behaviour pattern, which of the two methods appear more appropriate? Explain your answer.
The accounting records for Portland Products report the following manufacturing costs for the past year. Direct materials $ 390,000 Direct labor 262,000 Variable overhead 231,000 Production was 170,000 units. Fixed manufacturing overhead was $860,000. For the coming year, costs are expected to increase as follows: direct materials costs by 20 percent, excluding any effect of volume changes; direct labor by 4 percent; and fixed manufacturing overhead by 10 percent. Variable manufacturing overhead per unit is expected to remain the same. Required A: Prepare a cost estimate for a volume level of 136,000 units of product this year. (Do not round intermediate calculations.) Cost Item This Year’s cost Direct materials _______________ Direct labor…
Variable manufacturing costs at ACME Corp. are as follows: $3.25 per unit $1.05 per unit Direct materials Direct labor Fixed manufacturing costs are $6,000 per month. If the company produces 4,500 units in March and sells 4,000 units, then what is total manufacturing cost at ACME Corp. in March?
1. Prepare the scatter diagram, clearly showing any outliers. 2. Using the line of best-fit, determine the company’s fixed cost per month and the variable cost per unit.(Use 0 & 5,000 units.)
The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month Total Production cost Lev)el of Activity (Units produce July $230,000 3,500 August 250,000 3,750 Septemer 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3,300 March 240,000 3,600 April 380,000 5,900 May 350,000 5,600 June 290,000 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method.
Please refer to this problem for the next 3 questions: Inked Company produces and sells rattan baskets. The number of units produced and the corresponding total production costs for six months, which are representatives for the year, are presented in the table below. (1) Using the least squares method, the variable production cost per unit is approximately Month Units Produced Production Costs P4,000 8,000 April 500 May 700 6,000 7,500 June 900 July 600 800 8,500 August 550 7,250 September O P10.00 OP5.00 P3.74 P0.27
Your Company’s cost formula for its wages and salaries is $2,500 per month plus $475 per unit sold. For the month of May, the company planned for activity of 120 units, but the actual level of activity was 115 units. The actual wages and salaries for the month was $56,850. What is the spending variance for wages and salaries in May? $2,650 F $ 275 F $ 275 U $2,650 U
The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month Total Production Costs Level of Activity (Units Produced) July $ 230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3,300 March 240,000 3,600 April 380,000 5,900 May 350,000 5,600 June 290,000 5,000 Required: Determine the variable cost per unit and the fixed cost using the high-low method. What is the equation of the total mixed cost function? Prepare the scatter diagram, clearly showing any outliers Using the line of best-fit, determine the company’s fixed cost per month and the variable cost per unit. (Use 0 & 5,000 units. In view of the department’s cost behaviour pattern, which of the two methods appear more appropriate?…