Problem 31: High-lowIrvin Company has provided the following information:60,000 unitsUnits of OutputDirect materialsWorkers' wagesSupervisors' salariesEquipment depreciationMaintenanceUtilities360,0002,160,000624,000302,400163,200768,0004,377,60084,000 units504,0003,024,000624,000302,400220,8001,056,0005,731,200Required: Using the high-low method and the information provided above,a. Identify the linear cost function equation andb. Estimate the total cost at 72,000 units of output

High -low method is the method where variable element in the mixed cost is difference of the highest…

Answered: visors' salaries ment depreciation…

Business

Accounting

visors' salaries ment depreciation enance es 624,000 302,400 163,200 768,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
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nttps:25A%252F%252HM..mh A company allocates materials handling cost to the company's two products using the below data: Product A Product B Total expected units produced 5,400 11,800 Total expected material 530 470 moves Expected direct labor-hour 670 150 per unit The total materials handling cost for the year is expected to be $182,000. If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost would be allocated to the Product B? (Round your intermediate calculations to 5 decimal places.) Multiple Choice $97,944 $74,263 $35,671 $59.791
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Question 32?
The income statement of Archer Manufacturing is as follows: Cost of Goods Sold: Direct Materials Direct Labor (variable) Variable Manufacturing Overhead Fixed Manufacturing Overhead Gross Margin Selling, General & Administrative Costs: Variable SG& A Fixed SG&A Net Operating Income Archer's margin of safety percentage (MoS %) %. P 2,000,000 P P 500,000 150,000 50,000 600,000 700.000 180,000 300,000 300,000
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11.Given Company generated the following data for the year just endedw.If work in process end is 80% of work in process beginning, the work in process at the end is *
20 01:05:03 Mc Graw Hill Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit $ 200 $ 76 $ 50 $ 10 $ 8 Multiple Choice Per Year Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? $ 291,000 The absorption costing net operating income will be lower than the variable costing net operating income by $29,100. The absorption costing net operating income will be lower than the variable costing net operating income by $101,100. The absorption costing net operating income will be higher than the variable costing net operating income by $29,100. The absorption costing net operating income will be higher than the variable costing net operating income by $101,100. Prev 20 of 25 Next >
TB MC Qu. 14-77 Newton Manufacturing has... Newton Manufacturing has 71,900 labor hours available for producing M and N. Consider the following information: Required labor time per unit (hours) Maximum demand (units) Contribution margin per unit Contribution margin per labor hour Multiple Choice O If Newton follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate? O $41,600 $98,750. $99,150. $101,750. Product M None of the answers is correct. 7,100 $ 6.00 $ 1.50 Product N 5 9,100 $ 6.50 $ 1.30