Fixed Costs: Fixed costs are those costs which do not change with the change in the production. Whether the production is 0 or 100 fixed costs will remain the same. Fixed costs are stagnant in nature in short term but in the long run they also start varying with the change in production. Variable Costs: Variable costs are those costs which change proportionally with the change in the units of production. As the production units rise or declined; there will be a change in the variable costs. To identify: Budgeted fixed costs and variable costs.

Question

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Answer 1

Question

Chapter 21, Problem 1MCQ

To determine

Fixed Costs:

Fixed costs are those costs which do not change with the change in the production. Whether the production is 0 or 100 fixed costs will remain the same. Fixed costs are stagnant in nature in short term but in the long run they also start varying with the change in production.

Variable Costs:

Variable costs are those costs which change proportionally with the change in the units of production. As the production units rise or declined; there will be a change in the variable costs.

To identify: Budgeted fixed costs and variable costs.

Expert Solution & Answer

Explanation of Solution

Given,
Budgeted production and sales are 24,000 units.
Budgeted fixed costs are $300,000.
Budgeted variable costs are $246,000.
Decline in the level of activity is 20,000 units.

Formula to calculate revised variable costs is,

Revised variable cost= Budgeted variable cost Budgeted units ×Actual units

Substitute $246,000 for budgeted variable cost, 24,000 units for budgeted units and 20,000 units for actual units.

Revised variable cost= $246,000 24,000 units ×20,000 units =$205,000

Hence, fixed costs remain unchanged and revised variable costs are $205,000.

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Sp25 ACCT X CengageNOWv2 | Online teaching X exhibit 6.4.jpg 71x399) x + bw.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress=true FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are Number Date Transaction of Units Per Unit Total Apr. 3 Inventory 25 $1,200 $30,000 8 Purchase 75 1,240 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 < 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 99,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illust first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER un Check My Work 3 more Check My Work uses remaining Q Search hp

PLEASE HELP! NOTICE. THERE ARE FIVE CELLS ON THE LEFT SIDE TO FILL. THE DROPDOWN SHOWS THE OPTIONS FOR THESE CELLS.

Calm Ltd has the following data relating tò two investment projects, only one of which mayb e s e l e c t e d :The cost of capital is 10 per cent, and depreciation is calculated using straight line method.a . Calculate for each of the project:i. Average annual accounting rate of return on average capital investedi i . Net Present Valuei l l . I n t e r n a l R a t e o f Returnb. Discuss the relative merits of the methods of evaluation mentioned above in (a).Q.4a . In the context of process costing, discuss the following concepts briefly, i . Equivalent unitsNormal lossill. Abnormal lossi v. Joint productsV . By productsb . Discuss the different types of standard costing and objectives of standard costing.

Answer 2

Question

Chapter 21, Problem 1MCQ

To determine

Fixed Costs:

Fixed costs are those costs which do not change with the change in the production. Whether the production is 0 or 100 fixed costs will remain the same. Fixed costs are stagnant in nature in short term but in the long run they also start varying with the change in production.

Variable Costs:

Variable costs are those costs which change proportionally with the change in the units of production. As the production units rise or declined; there will be a change in the variable costs.

To identify: Budgeted fixed costs and variable costs.

Expert Solution & Answer

Explanation of Solution

Given,
Budgeted production and sales are 24,000 units.
Budgeted fixed costs are $300,000.
Budgeted variable costs are $246,000.
Decline in the level of activity is 20,000 units.

Formula to calculate revised variable costs is,

Revised variable cost= Budgeted variable cost Budgeted units ×Actual units

Substitute $246,000 for budgeted variable cost, 24,000 units for budgeted units and 20,000 units for actual units.

Revised variable cost= $246,000 24,000 units ×20,000 units =$205,000

Hence, fixed costs remain unchanged and revised variable costs are $205,000.

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Answer 3

Question

Chapter 21, Problem 1MCQ

To determine

Fixed Costs:

Fixed costs are those costs which do not change with the change in the production. Whether the production is 0 or 100 fixed costs will remain the same. Fixed costs are stagnant in nature in short term but in the long run they also start varying with the change in production.

Variable Costs:

Variable costs are those costs which change proportionally with the change in the units of production. As the production units rise or declined; there will be a change in the variable costs.

To identify: Budgeted fixed costs and variable costs.

Expert Solution & Answer

Explanation of Solution

Given,
Budgeted production and sales are 24,000 units.
Budgeted fixed costs are $300,000.
Budgeted variable costs are $246,000.
Decline in the level of activity is 20,000 units.

Formula to calculate revised variable costs is,

Revised variable cost= Budgeted variable cost Budgeted units ×Actual units

Substitute $246,000 for budgeted variable cost, 24,000 units for budgeted units and 20,000 units for actual units.

Revised variable cost= $246,000 24,000 units ×20,000 units =$205,000

Hence, fixed costs remain unchanged and revised variable costs are $205,000.

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Answer 4

Question

Chapter 21, Problem 1MCQ

To determine

Fixed Costs:

Fixed costs are those costs which do not change with the change in the production. Whether the production is 0 or 100 fixed costs will remain the same. Fixed costs are stagnant in nature in short term but in the long run they also start varying with the change in production.

Variable Costs:

Variable costs are those costs which change proportionally with the change in the units of production. As the production units rise or declined; there will be a change in the variable costs.

To identify: Budgeted fixed costs and variable costs.

Expert Solution & Answer

Explanation of Solution

Given,
Budgeted production and sales are 24,000 units.
Budgeted fixed costs are $300,000.
Budgeted variable costs are $246,000.
Decline in the level of activity is 20,000 units.

Formula to calculate revised variable costs is,

Revised variable cost= Budgeted variable cost Budgeted units ×Actual units

Substitute $246,000 for budgeted variable cost, 24,000 units for budgeted units and 20,000 units for actual units.

Revised variable cost= $246,000 24,000 units ×20,000 units =$205,000

Hence, fixed costs remain unchanged and revised variable costs are $205,000.

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Answer 5

Chapter 21, Problem 1MCQ

To determine

Fixed Costs:

Fixed costs are those costs which do not change with the change in the production. Whether the production is 0 or 100 fixed costs will remain the same. Fixed costs are stagnant in nature in short term but in the long run they also start varying with the change in production.

Variable Costs:

Variable costs are those costs which change proportionally with the change in the units of production. As the production units rise or declined; there will be a change in the variable costs.

To identify: Budgeted fixed costs and variable costs.

Expert Solution & Answer

Explanation of Solution

Given,
Budgeted production and sales are 24,000 units.
Budgeted fixed costs are $300,000.
Budgeted variable costs are $246,000.
Decline in the level of activity is 20,000 units.

Formula to calculate revised variable costs is,

Revised variable cost= Budgeted variable cost Budgeted units ×Actual units

Substitute $246,000 for budgeted variable cost, 24,000 units for budgeted units and 20,000 units for actual units.

Revised variable cost= $246,000 24,000 units ×20,000 units =$205,000

Hence, fixed costs remain unchanged and revised variable costs are $205,000.

Answer 6

Chapter 21, Problem 1MCQ

To determine

Fixed Costs:

Fixed costs are those costs which do not change with the change in the production. Whether the production is 0 or 100 fixed costs will remain the same. Fixed costs are stagnant in nature in short term but in the long run they also start varying with the change in production.

Variable Costs:

Variable costs are those costs which change proportionally with the change in the units of production. As the production units rise or declined; there will be a change in the variable costs.

To identify: Budgeted fixed costs and variable costs.

Expert Solution & Answer

Explanation of Solution

Given,
Budgeted production and sales are 24,000 units.
Budgeted fixed costs are $300,000.
Budgeted variable costs are $246,000.
Decline in the level of activity is 20,000 units.

Formula to calculate revised variable costs is,

Revised variable cost= Budgeted variable cost Budgeted units ×Actual units

Substitute $246,000 for budgeted variable cost, 24,000 units for budgeted units and 20,000 units for actual units.

Revised variable cost= $246,000 24,000 units ×20,000 units =$205,000

Hence, fixed costs remain unchanged and revised variable costs are $205,000.

Answer 7

Chapter 21, Problem 1MCQ

To determine

Fixed Costs:

Fixed costs are those costs which do not change with the change in the production. Whether the production is 0 or 100 fixed costs will remain the same. Fixed costs are stagnant in nature in short term but in the long run they also start varying with the change in production.

Variable Costs:

Variable costs are those costs which change proportionally with the change in the units of production. As the production units rise or declined; there will be a change in the variable costs.

To identify: Budgeted fixed costs and variable costs.

Answer 8

Expert Solution & Answer

Explanation of Solution

Given,
Budgeted production and sales are 24,000 units.
Budgeted fixed costs are $300,000.
Budgeted variable costs are $246,000.
Decline in the level of activity is 20,000 units.

Formula to calculate revised variable costs is,

Revised variable cost= Budgeted variable cost Budgeted units ×Actual units

Substitute $246,000 for budgeted variable cost, 24,000 units for budgeted units and 20,000 units for actual units.

Revised variable cost= $246,000 24,000 units ×20,000 units =$205,000

Hence, fixed costs remain unchanged and revised variable costs are $205,000.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 21 - Prob. 1MCQ Ch. 21 - Prob. 2MCQ Ch. 21 - Prob. 3MCQ Ch. 21 - A Company’s standard for a unit of its single...Ch. 21 - Prob. 5MCQ Ch. 21 - Prob. 1DQ Ch. 21 - Prob. 2DQ Ch. 21 - Prob. 3DQ Ch. 21 - Prob. 4DQ Ch. 21 - Prob. 5DQ

Explanation of Solution

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Chapter 21 Solutions