Total variable costs have a direct relationship with the activity base. It increases or decreases in approximate proportion to increase or decrease in the activity base respectively. Total fixed costs do not change with the change in activity base provided that activities are performed within the relevant range. Fixed costs are period costs such as rent, interest on loans, and depreciation . These costs have to be paid whether production occurs or not. That is why fixed costs remain the same at all levels of production. : The Medical Services Department charges the Cutting Department, Milling Department, and Assembly Department.

Question

Want to see the full answer?

Answer 1

Question

Chapter 11, Problem 15E

1.

To determine

Total variable costs have a direct relationship with the activity base. It increases or decreases in approximate proportion to increase or decrease in the activity base respectively.

Total fixed costs do not change with the change in activity base provided that activities are performed within the relevant range. Fixed costs are period costs such as rent, interest on loans, and depreciation. These costs have to be paid whether production occurs or not. That is why fixed costs remain the same at all levels of production.

:

The Medical Services Department charges the Cutting Department, Milling Department, and Assembly Department.

2.

To determine

Spending variance shows the relationship between the budgeted cost and the actual cost incurred. If the budgeted cost is more than the actual cost incurred, then it is termed a favorable spending variance and vice versa.

:

The costs that should be treated as a spending variance and not charged to the operating departments.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

I am searching for the accurate solution to this financial accounting problem with the right approach.

Please provide problem with accounting question

Portman Solutions paid out $42.5 million in total common dividends and reported $150.3 million of retained earnings at year-end. The prior year's retained earnings were $104.8 million. Assume that all dividends declared were actually paid. What was the net income for the year?

Answer 2

Question

Chapter 11, Problem 15E

1.

To determine

Total variable costs have a direct relationship with the activity base. It increases or decreases in approximate proportion to increase or decrease in the activity base respectively.

Total fixed costs do not change with the change in activity base provided that activities are performed within the relevant range. Fixed costs are period costs such as rent, interest on loans, and depreciation. These costs have to be paid whether production occurs or not. That is why fixed costs remain the same at all levels of production.

:

The Medical Services Department charges the Cutting Department, Milling Department, and Assembly Department.

2.

To determine

Spending variance shows the relationship between the budgeted cost and the actual cost incurred. If the budgeted cost is more than the actual cost incurred, then it is termed a favorable spending variance and vice versa.

:

The costs that should be treated as a spending variance and not charged to the operating departments.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 11, Problem 15E

1.

To determine

Total variable costs have a direct relationship with the activity base. It increases or decreases in approximate proportion to increase or decrease in the activity base respectively.

Total fixed costs do not change with the change in activity base provided that activities are performed within the relevant range. Fixed costs are period costs such as rent, interest on loans, and depreciation. These costs have to be paid whether production occurs or not. That is why fixed costs remain the same at all levels of production.

:

The Medical Services Department charges the Cutting Department, Milling Department, and Assembly Department.

2.

To determine

Spending variance shows the relationship between the budgeted cost and the actual cost incurred. If the budgeted cost is more than the actual cost incurred, then it is termed a favorable spending variance and vice versa.

:

The costs that should be treated as a spending variance and not charged to the operating departments.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 11, Problem 15E

1.

To determine

Total variable costs have a direct relationship with the activity base. It increases or decreases in approximate proportion to increase or decrease in the activity base respectively.

Total fixed costs do not change with the change in activity base provided that activities are performed within the relevant range. Fixed costs are period costs such as rent, interest on loans, and depreciation. These costs have to be paid whether production occurs or not. That is why fixed costs remain the same at all levels of production.

:

The Medical Services Department charges the Cutting Department, Milling Department, and Assembly Department.

2.

To determine

Spending variance shows the relationship between the budgeted cost and the actual cost incurred. If the budgeted cost is more than the actual cost incurred, then it is termed a favorable spending variance and vice versa.

:

The costs that should be treated as a spending variance and not charged to the operating departments.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 15E

1.

To determine

Total variable costs have a direct relationship with the activity base. It increases or decreases in approximate proportion to increase or decrease in the activity base respectively.

Total fixed costs do not change with the change in activity base provided that activities are performed within the relevant range. Fixed costs are period costs such as rent, interest on loans, and depreciation. These costs have to be paid whether production occurs or not. That is why fixed costs remain the same at all levels of production.

:

The Medical Services Department charges the Cutting Department, Milling Department, and Assembly Department.

2.

To determine

Spending variance shows the relationship between the budgeted cost and the actual cost incurred. If the budgeted cost is more than the actual cost incurred, then it is termed a favorable spending variance and vice versa.

:

The costs that should be treated as a spending variance and not charged to the operating departments.

Answer 6

Chapter 11, Problem 15E

1.

To determine

Total variable costs have a direct relationship with the activity base. It increases or decreases in approximate proportion to increase or decrease in the activity base respectively.

Total fixed costs do not change with the change in activity base provided that activities are performed within the relevant range. Fixed costs are period costs such as rent, interest on loans, and depreciation. These costs have to be paid whether production occurs or not. That is why fixed costs remain the same at all levels of production.

:

The Medical Services Department charges the Cutting Department, Milling Department, and Assembly Department.

Answer 7

Chapter 11, Problem 15E

1.

To determine

Total variable costs have a direct relationship with the activity base. It increases or decreases in approximate proportion to increase or decrease in the activity base respectively.

Total fixed costs do not change with the change in activity base provided that activities are performed within the relevant range. Fixed costs are period costs such as rent, interest on loans, and depreciation. These costs have to be paid whether production occurs or not. That is why fixed costs remain the same at all levels of production.

:

The Medical Services Department charges the Cutting Department, Milling Department, and Assembly Department.

Answer 8

2.

To determine

Spending variance shows the relationship between the budgeted cost and the actual cost incurred. If the budgeted cost is more than the actual cost incurred, then it is termed a favorable spending variance and vice versa.

:

The costs that should be treated as a spending variance and not charged to the operating departments.

Answer 9

2.

To determine

Spending variance shows the relationship between the budgeted cost and the actual cost incurred. If the budgeted cost is more than the actual cost incurred, then it is termed a favorable spending variance and vice versa.

:

The costs that should be treated as a spending variance and not charged to the operating departments.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 11 - Prob. 1Q Ch. 11 - Prob. 2Q Ch. 11 - Prob. 3Q Ch. 11 - Prob. 4Q Ch. 11 - Prob. 5Q Ch. 11 - Prob. 6Q Ch. 11 - Prob. 7Q Ch. 11 - Prob. 8Q Ch. 11 - Prob. 9Q Ch. 11 - Prob. 10Q

Solution Summary: The author explains that total variable costs have a direct relationship with the activity base. Fixed costs are period costs such as rent, interest on loans, and depreciation.

Want to see the full answer?

Chapter 11 Solutions