Explain how total amount of fixed cost is affected by changes in cost driver.

Question

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Answer 1

Question

Chapter 12, Problem 17P

a)

To determine

Explain how total amount of fixed cost is affected by changes in cost driver.

b)

To determine

Explain how total amount of fixed cost per unit is affected by changes in cost driver.

c)

To determine

Whether expert’s salary is an indirect cost or direct cost when cost objective is to ascertain the cost per tent.

d)

To determine

Determine the amount of salary of expert allocated to tents in the month of January and February.

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Qantas Industries has fixed costs of $250,000 and profit of $125,000. What is its degree of operating leverage? a. 1.5 b. 3 c. 2 d. 2.5

Answer 2

Question

Chapter 12, Problem 17P

a)

To determine

Explain how total amount of fixed cost is affected by changes in cost driver.

b)

To determine

Explain how total amount of fixed cost per unit is affected by changes in cost driver.

c)

To determine

Whether expert’s salary is an indirect cost or direct cost when cost objective is to ascertain the cost per tent.

d)

To determine

Determine the amount of salary of expert allocated to tents in the month of January and February.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 17P

a)

To determine

Explain how total amount of fixed cost is affected by changes in cost driver.

b)

To determine

Explain how total amount of fixed cost per unit is affected by changes in cost driver.

c)

To determine

Whether expert’s salary is an indirect cost or direct cost when cost objective is to ascertain the cost per tent.

d)

To determine

Determine the amount of salary of expert allocated to tents in the month of January and February.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 17P

a)

To determine

Explain how total amount of fixed cost is affected by changes in cost driver.

b)

To determine

Explain how total amount of fixed cost per unit is affected by changes in cost driver.

c)

To determine

Whether expert’s salary is an indirect cost or direct cost when cost objective is to ascertain the cost per tent.

d)

To determine

Determine the amount of salary of expert allocated to tents in the month of January and February.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 12, Problem 17P

a)

To determine

Explain how total amount of fixed cost is affected by changes in cost driver.

b)

To determine

Explain how total amount of fixed cost per unit is affected by changes in cost driver.

c)

To determine

Whether expert’s salary is an indirect cost or direct cost when cost objective is to ascertain the cost per tent.

d)

To determine

Determine the amount of salary of expert allocated to tents in the month of January and February.

Answer 6

Chapter 12, Problem 17P

a)

To determine

Explain how total amount of fixed cost is affected by changes in cost driver.

Answer 7

Chapter 12, Problem 17P

a)

To determine

Explain how total amount of fixed cost is affected by changes in cost driver.

Answer 8

b)

To determine

Explain how total amount of fixed cost per unit is affected by changes in cost driver.

Answer 9

b)

To determine

Explain how total amount of fixed cost per unit is affected by changes in cost driver.

Answer 10

c)

To determine

Whether expert’s salary is an indirect cost or direct cost when cost objective is to ascertain the cost per tent.

Answer 11

c)

To determine

Whether expert’s salary is an indirect cost or direct cost when cost objective is to ascertain the cost per tent.

Answer 12

d)

To determine

Determine the amount of salary of expert allocated to tents in the month of January and February.

Answer 13

d)

To determine

Determine the amount of salary of expert allocated to tents in the month of January and February.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 12 - 1.What is a cost object? Identify four different...Ch. 12 - Prob. 2Q Ch. 12 - 3.If the cost object is a manufactured product,...Ch. 12 - Prob. 4Q Ch. 12 - Prob. 5Q Ch. 12 - Prob. 6Q Ch. 12 - Prob. 7Q Ch. 12 - Prob. 8Q Ch. 12 - Prob. 9Q Ch. 12 - 10.Why are some manufacturing costs not directly...

Explain how total amount of fixed cost is affected by changes in cost driver.

Solution Summary: The author explains how fixed cost is affected by changes in cost driver. The cost of inspection is not driven by the number of tents.

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Explain how total amount of fixed cost is affected by changes in cost driver.

Explain how total amount of fixed cost per unit is affected by changes in cost driver.

Whether expert’s salary is an indirect cost or direct cost when cost objective is to ascertain the cost per tent.

Determine the amount of salary of expert allocated to tents in the month of January and February.

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Chapter 12 Solutions