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. Variable costs per unit do not change with the change in activity base. The reason is that total variable costs positively change in approximate proportion to a change in an activity. That is why variable costs per unit remain the same at any level of output. The variable cost charged to Northern Plant and Southern Plant.

Question

Want to see the full answer?

Answer 1

Question

Chapter 11, Problem 4E

1.

To determine

Introduction: 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. Variable costs per unit do not change with the change in activity base. The reason is that total variable costs positively change in approximate proportion to a change in an activity. That is why variable costs per unit remain the same at any level of output.

The variable cost charged to Northern Plant and Southern Plant.

2.

To determine

Introduction: 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 fixed costs charged to Northern Plant and Southern Plant.

3.

To determine

Introduction: 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 amount of spending variance which is not charged to the plants.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Financing Deficit Stevens Textile Corporation's 2019 financial statements are shown below: Just need the correct LOC? Balance Sheet as of December 31, 2019 (Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320 Receivables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0 Total current assets $16,560 Notes payable 2,100 Net fixed assets 12,600 Total current liabilities $ 9,300 Mortgage bonds 3,500 Common stock 3,500 Retained earnings 12,860 Total assets $29,160 Total liabilities and equity $29,160 Income Statement for December 31, 2019 (Thousands of Dollars) Sales $36,000 Operating costs 34,000 Earnings before interest and taxes $ 2,000 Interest 160 Pre-tax earnings $ 1,840 Taxes (25%) 460 Net income $ 1,380 Dividends (40%) $ 552 Addition to retained earnings $ 828 Stevens grew rapidly in 2019 and financed the growth with notes payable and long-term bonds. Stevens expects sales to…

When iuploading image then it get blurry Comment in comment section I will write data.

Correct answer please

Answer 2

Question

Chapter 11, Problem 4E

1.

To determine

Introduction: 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. Variable costs per unit do not change with the change in activity base. The reason is that total variable costs positively change in approximate proportion to a change in an activity. That is why variable costs per unit remain the same at any level of output.

The variable cost charged to Northern Plant and Southern Plant.

2.

To determine

Introduction: 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 fixed costs charged to Northern Plant and Southern Plant.

3.

To determine

Introduction: 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 amount of spending variance which is not charged to the plants.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 11, Problem 4E

1.

To determine

Introduction: 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. Variable costs per unit do not change with the change in activity base. The reason is that total variable costs positively change in approximate proportion to a change in an activity. That is why variable costs per unit remain the same at any level of output.

The variable cost charged to Northern Plant and Southern Plant.

2.

To determine

Introduction: 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 fixed costs charged to Northern Plant and Southern Plant.

3.

To determine

Introduction: 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 amount of spending variance which is not charged to the plants.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 11, Problem 4E

1.

To determine

Introduction: 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. Variable costs per unit do not change with the change in activity base. The reason is that total variable costs positively change in approximate proportion to a change in an activity. That is why variable costs per unit remain the same at any level of output.

The variable cost charged to Northern Plant and Southern Plant.

2.

To determine

Introduction: 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 fixed costs charged to Northern Plant and Southern Plant.

3.

To determine

Introduction: 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 amount of spending variance which is not charged to the plants.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 4E

1.

To determine

Introduction: 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. Variable costs per unit do not change with the change in activity base. The reason is that total variable costs positively change in approximate proportion to a change in an activity. That is why variable costs per unit remain the same at any level of output.

The variable cost charged to Northern Plant and Southern Plant.

2.

To determine

Introduction: 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 fixed costs charged to Northern Plant and Southern Plant.

3.

To determine

Introduction: 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 amount of spending variance which is not charged to the plants.

Answer 6

Chapter 11, Problem 4E

1.

To determine

Introduction: 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. Variable costs per unit do not change with the change in activity base. The reason is that total variable costs positively change in approximate proportion to a change in an activity. That is why variable costs per unit remain the same at any level of output.

The variable cost charged to Northern Plant and Southern Plant.

Answer 7

Chapter 11, Problem 4E

1.

To determine

Introduction: 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. Variable costs per unit do not change with the change in activity base. The reason is that total variable costs positively change in approximate proportion to a change in an activity. That is why variable costs per unit remain the same at any level of output.

The variable cost charged to Northern Plant and Southern Plant.

Answer 8

2.

To determine

Introduction: 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 fixed costs charged to Northern Plant and Southern Plant.

Answer 9

2.

To determine

Introduction: 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 fixed costs charged to Northern Plant and Southern Plant.

Answer 10

3.

To determine

Introduction: 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 amount of spending variance which is not charged to the plants.

Answer 11

3.

To determine

Introduction: 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 amount of spending variance which is not charged to the plants.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

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 variable costs per unit do not change with the change in activity base. Fixed costs are period costs such as rent, interest on loans, and depreciation.

Want to see the full answer?

Chapter 11 Solutions