Horngren's Cost Accounting, Student Value Edition (16th Edition)
16th Edition
ISBN: 9780134476032
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 10, Problem 10.16MCQ
HL Co. uses the high-low method to derive a total cost formula. Using a range of units produced from 1,500 to 7,500, and a range of total costs from $21,000 to $45,000, producing 2,000 units will cost HL:
- a. $8,000
- b. $12,000
- c. $23,000
- d. $29,000
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Given the cost formula, Y = $16,000+ $3.40x, total cost for an activity level of 4,000 units would be:
A. $13,600
OB. $3,600
C. $29,600
O D. $16,000
Yanks Ltd uses the following cost function: Y = $7000 + $8.50X. If the number of units
produced in a month is 200, what would be the total cost?
clarks Ltd uses the following cost function: Y = $7000 + $8.50X. If the number of units
produced in a month is 200, what would be the total cost?
a) $7,170
b) $7008.50
c) $8,700
d) $7,800
Chapter 10 Solutions
Horngren's Cost Accounting, Student Value Edition (16th Edition)
Ch. 10 - What two assumptions are frequently made when...Ch. 10 - Describe three alternative linear cost functions.Ch. 10 - What is the difference between a linear and a...Ch. 10 - High correlation between two variables means that...Ch. 10 - Name four approaches to estimating a cost...Ch. 10 - Describe the conference method for estimating a...Ch. 10 - Describe the account analysis method for...Ch. 10 - List the six steps in estimating a cost function...Ch. 10 - When using the high-low method, should you base...Ch. 10 - Describe three criteria for evaluating cost...
Ch. 10 - Define learning curve. Outline two models that can...Ch. 10 - Discuss four frequently encountered problems when...Ch. 10 - Prob. 10.13QCh. 10 - All the independent variables in a cost function...Ch. 10 - Multicollinearity exists when the dependent...Ch. 10 - HL Co. uses the high-low method to derive a total...Ch. 10 - A firm uses simple linear regression to forecast...Ch. 10 - In regression analysis, the coefficient of...Ch. 10 - A regression equation is set up, where the...Ch. 10 - What would be the approximate value of the...Ch. 10 - Estimating a cost function. The controller of the...Ch. 10 - Identifying variable-, fixed-, and mixed-cost...Ch. 10 - Various cost-behavior patterns. (CPA, adapted)....Ch. 10 - Matching graphs with descriptions of cost and...Ch. 10 - Account analysis, high-low. Stein Corporation...Ch. 10 - Account analysis method. Gower, Inc., a...Ch. 10 - Prob. 10.27ECh. 10 - Estimating a cost function, high-low method. Lacy...Ch. 10 - Linear cost approximation. Dr. Young, of Young and...Ch. 10 - Cost-volume-profit and regression analysis....Ch. 10 - Regression analysis, service company. (CMA,...Ch. 10 - High-low, regression. May Blackwell is the new...Ch. 10 - Learning curve, cumulative average-time learning...Ch. 10 - Learning curve, incremental unit-time learning...Ch. 10 - High-low method. Wayne Mueller financial analyst...Ch. 10 - High-low method and regression analysis. Market...Ch. 10 - High-low method; regression analysis. (CIMA,...Ch. 10 - Regression, activity-based costing, choosing cost...Ch. 10 - Interpreting regression results. Spirit...Ch. 10 - Cost estimation, cumulative average-time learning...Ch. 10 - Cost estimation, incremental unit-time learning...Ch. 10 - Regression; choosing among models. Apollo Hospital...Ch. 10 - Multiple regression (continuation of 10-42). After...Ch. 10 - Cost estimation. Hankuk Electronics started...Ch. 10 - Prob. 10.45PCh. 10 - Interpreting regression results, matching time...Ch. 10 - Purchasing department cost drivers, activity-based...Ch. 10 - Purchasing department cost drivers, multiple...
Additional Business Textbook Solutions
Find more solutions based on key concepts
E9-15 Identifying and correcting internal control weakness
Learning Objective 1
Suppose The Right Rig Dealers...
Horngren's Accounting (11th Edition)
You own a clothing store and use a periodic inventory system. Research like companies in the clothing industry ...
Principles of Accounting Volume 1
Prepare a production cost report and journal entries (Learning Objectives 4 5) Vintage Accessories manufacture...
Managerial Accounting (5th Edition)
Depreciation Methods, Partial-Year Depreciation. Repeat the requirements in E11-13 assuming that Kurtis Koal Co...
Intermediate Accounting (2nd Edition)
Loder Company had a good year, and recorded a large gain on the sale of a discontinued business segment. Bates ...
Financial Accounting
LO 4 (Learning Objective 4: Use ratios to evaluate a stock investment) Comparative financial statement data of ...
Financial Accounting (12th Edition) (What's New in Accounting)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?arrow_forwardTotal costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable costs are $5 per unit, what are their fixed costs? $240,000 $200,000 $260,000 Their fixed costs cannot be determined from the information presented.arrow_forwardXYZ Company uses the high low method to analyze the mixed cost. According to the cost formula derived, the total fixed cost is $10,000. Total cost at the high level of activity was $73,000 and at the low level of activity was $25,000. If the low level of activity was 2,500 units, what was the high level of activity in units? Select one: O a. 10,500 O b. 11,500 O c. None of the answers given O d. 7,300 O e. 11,000arrow_forward
- Given the costs to produce 30,000 units, calculate the amounts for 1. - 4. below Number of units 30,000 Total Variable Costs $150,000 Total Fixed Costs $150,000 Total Costs $300,000 Fixed Cost per unit ✓ 1. Total Fixed Cost (at 60,000 units) ✓2. Total Fixed Costs (at 120,000 units) ✓3. Fixed Cost per unit (at 60,000 units) ✓ 4. Fixed Cost per unit (at 120,000 units) 60,000 3. A. None of these are correct. B. $5 C. $30,000 D. $2.50 E. $1.25 F. $150,000 G. $600,000 H. $300,000 120,000 2. 4.arrow_forwardBasel uses the high-low method of estimating costs. Basel had total costs of $50,000 at its lowest level of activity, when 5,000 units were sold. When, at its highest level of activity, sales equaled 12,000 units, and total costs were $78,000. Basel would estimate variable cost per unit as O a. $ 10 O b. $6.50 ○ c. $ 7.53 d. $4arrow_forwardPaz Co. has a total cost function of y = mx + b. If b = $50,000 and Paz's total cost was $120,000 to produce 5,000 units, what is Paz's total cost per unit? O $14 O $25 $24 $20 None of the abovearrow_forward
- What is the correct choice? When fixed costs are $18,000 and the contribution margin per unit is $4, the breakeven point is a. 4,500 units. b. 2,230 units. c. $22,300. d. $72,000.arrow_forwardConsider the following information available for Barium Company: Total fixed costs $1,440,000 Contribution margin ratio 0.30 Based on the given information, calculate the sales revenue needed to achieve a target profit of $360,000. a.$6,250,000 b.$5,750,000 c.$5,000,000 d.$6,000,000arrow_forwardCraylon Manufacturing Company produces two products, X and Y. The following information is presented for both products: X Y Selling price per unit $40 $25 Variable cost per unit 25 15 Total fixed costs are $275,000.Required:a. Calculate the contribution margin for each product.b. Calculate breakeven point in units of both X and Y if the sales mix is 3 units of X for every unit of Y.c. Calculate breakeven volume in total dollars if the sales mix is 2 units of X for every 3 units of Y.arrow_forward
- Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $80; Variable costs per unit includes: Direct material $16, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $96,000. What is the contribution margin percentage? Finisk a. 47.5% O b. 52.5% O c. 70% ype here to search & 7. V 3 5. 8. W. R Y. G H. V M alt ctri alt 立arrow_forwardSelect cost information for Seacrest Enterprises is as follows: Direct materials Utilities expense Rent expense Based on this information: Multiple Choice O 1,000 units of output Total Cost/Unit $ 5,000 $ 5.00 $ 1,000 $ 1.00 $4,000 $ 4.00 Both direct materials and rent expense are variable costs. 5,000 units of output Cost/Unit Total $ 25,000 $ 3,750 $ 4,000 Utilities expense is a mixed cost and rent expense is a variable cost. Utilities expense is a mixed cost and rent expense is a fixed cost. Direct materials is a fixed cost and utilities expense is a mixed cost. $ 5.00 $ 0.75 $ 0.80arrow_forwardTotal costs are OMR 70,000 when 10,000 units are produced; of this amount, variable costs are 20,000. What are the total costs when 7,500 units are produced? Select one:a.55,000b.55,000c.79,000d.65,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Fixed Asset Replacement Decision 1235; Author: Accounting Instruction, Help, & How To;https://www.youtube.com/watch?v=LJRzn9K8Nwk;License: Standard Youtube License