Please Provide Correct Solution Zerbel Company, a wholesaler of large, custom-built air conditioning unitsfor commercial buildings, has noticed considerable fluctuation in its shippingexpense from month to month:Units Total Shipping Shipped ExpenseMarchMonthJanuaryFebruary 74752368AprilMayJuneJuly$2,200$3,100$2,600$1,500$2,200$3,000$3,600Using the high-low method, estimate the cost formula for shippingexpense.

Solution:High Activity Level = July = 8 units shipped and Shipping cost at this level = $3,600Low…

Answered: Zerbel Company, a wholesaler of large,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 15EB: Best Wholesale recently calculated their break-even point for their Midwest operations. The national...

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Cost Accounting
Estimate the cost formula for delivery expense
General Accounting Question Solution
A wholesaler of custom-built air-conditioning units for commercial buildings gathered the following monthly data relating to units shipped and total shipping expense: Units shipped Total shipping expense $2,000 $2,500 $1,900 $2,200 $2,500 $3,030 $1,950 Month 2. January February March 3. April May June 4. 7. July 3 Using the high-low method estimate the cost formula for shipping expenses, calculate the variable shipping expense as well as fixed shipping expense per unit. %24 (All answers are whole numbers - unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g, -1000 for a decrease or loss of one thousand.) Variable shipping expense = $ per unit. Fixed shipping expense = $ per unit.
A supplier ships goods from Richmond, VA to three market places in 3 cities (Chicago, IL; Athens, GA; St. Luis, MO). The supplier can ship every day, every other day, or every third day. There is a penalty of $0.30/cwt for each day delayed. Consolidating shipments allows for lower transportation costs from larger loads, but incurs penalty costs due to the delay. Transportation Rate (S/cwt) Shipment City Weight/day LTL 50,000 lb 50000 Ib Chicago, IL 18,000 lb (180 cwt) 1.50 1.25 Athens, GA 15,000 lb (150 cwt) 1.35 1.00 St. Luis, MO 12,000 lb (120 cwt) 2.00 1.50 Total 45,000 lb = 450 cwt Find what is the cost for the following: Shipping Every Day Shipping on the alternate Day (every two days) Shipping every three Day
a. Using the least squares method, develop the equation for predicting weekly receiving report costs based on the number of shipments received. b. What is the predicted amount of receiving report costs for a month (assume a month is exactly four weeks) in which 165 shipments are received?
Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JITDistributors Non-JITDistributors Sales orders 1,000 100 Sales calls 70 70 Service calls 350 175 Average order size 650 6,500 Manufacturing cost/unit $125 $125 Customer costs: Processing sales orders $3,380,000 Selling goods 1,120,000 Servicing goods 1,050,000 Total $5,550,000 Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. Round calculations to the nearest dollar. JIT…
Memofax Inc. produces memory enhancement kits for fax machines. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company's contribution format income statement for the most recent month is given below. Sales (12,600 units at $40 per unit $504,000 Variable 202.40 *
LO.4 (High-low method) Wyoming Wholesale has gathered the following data on the number of shipments received and the cost of receiving reports for the first seven weeks of 2013. Number ofShipments Received Weekly Cost ofReceiving Reports 50 $175 44 162 40 154 35 142 53 185 58 200 60 202 a. Using the high-low method, develop the equation for predicting weekly receiving report costs based on the number of shipments received.b. What is the predicted amount of receiving report costs for a week in which 72 shipments are received?
Please need answer the financial accounting question
The Company wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to each area. It wants to separate the fixed and variable portion of the truck's operating costs so it has a better idea of how distance affects these costs. the Company has the following data available. Month Miles driven Total operating costs January 16,200 $22,650 February 17,000 $23,250 March 20,000 $25,000 April 16,500 $22,875 May 17,400 $23,550 June 15,000 $22,000 Using the high-low method, the monthly operating costs if the Company drives 21,000 miles in a month will be (Round any intermediary calculations to the nearest cent.)

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