Alden Co.'s monthly unit sales and total cost data for its operating activities of the past year follow.Management wants to use these data to predict future fixed and variable costs.Month Units SoldTotal CostMonthUnits SoldTotal Cost1234561320,000$160,0007340,000$220,000160,000100,0008280,000160,0003280,000220,000980,00064,000200,000100,00010160,000140,000300,000230,00011100,000100,0006200,000120,00012110,00080,0002. Predict future total costs when sales volume is (a) 200,000 units and (b) 300,000 units.Sales (units)Variable costsFixed costsTotalPredictions200,0000300,000

High-low method is one of the techniques that is used to separate fixed and variable components from…

and total cost data for its operating activities of the past year Management wants to use these data to predict future fixed and variable costs. Month Units Sold Total Cost Month Units Sold 1 320,000 $160,000 7 340,000 Total Cost $220,000 2 160,000 100,000 8 280,000 160,000 280,000 220,000 9 80,000 64,000 4 200,000 100,000 10 160,000 140,000 5 300,000 230,000 11 100,000 100,000 6 200,000 120,000 12 110,000 80,000 Predict future total costs when sales volume is (a) 200,000 units and (b) 300,000 units. alon (unite) Predictions 200.000 300.000

and total cost data for its operating activities of the past year Management wants to use these data to predict future fixed and variable costs. Month Units Sold Total Cost Month Units Sold 1 320,000 $160,000 7 340,000 Total Cost $220,000 2 160,000 100,000 8 280,000 160,000 280,000 220,000 9 80,000 64,000 4 200,000 100,000 10 160,000 140,000 5 300,000 230,000 11 100,000 100,000 6 200,000 120,000 12 110,000 80,000 Predict future total costs when sales volume is (a) 200,000 units and (b) 300,000 units. alon (unite) Predictions 200.000 300.000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
Wellington, Inc., reports the following contribution margin income statement for the month of May. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $10 but will increase fixed costs by 20%. Prepare a projected contribution margin income statement for Wellington, Inc., assuming it purchases the new equipment. Assume sales level remains unchanged.
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.
The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method, express the companys overtime wages as an equation where x represents number of invoices processed. Assume BC has monthly fixed costs of $3,800. Predict the overtime wages if 9,000 invoices are processed. Predict the overtime wages if 6,500 invoices are processed. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.
Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What is the cost formula for monthly shipping cost? Identify the independent variable, the dependent variable, the fixed cost per month, and the variable rate.
Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
Markham Farms reports the following contribution margin income statement for the month of August. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $2 but will increase fixed costs by 15%. Prepare a projected contribution margin income statement for Markham Farm assuming it purchases the new equipment. Assume sales level remains unchanged.
Required information [The following information applies to the questions displayed below.) Alden Company's monthly data for the past year follow. Management wants to use these data to predict future varlable and fixed costs. Units Sold 318,500 163,500 263,500 203,500 288,500 188,500 361,500 268,500 76,300 148,500 92,500 98,500 Month Total Cost $ 156.000 99,750 204,100 98,500 200, 0০0 110,500 288,956 150,250 66,500 129,125 92,500 83,150 2. 10 11 12 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of varlable cost per unit High-Low method - Calculation of fixed costs Total cost at the highest volume Variable costs at highest volume: Highest volume Variable cost per unit Total variable costs at highest volume Total fixed costs Total cost at the lowest volume Variable costs at lowest volume: Lowest volume Variable cost per unit Total variable costs at lowest…
[The following information applies to the questions displayed below.] Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold Total Cost Month Units Sold Total Cost 1 324,500 $ 162,000 7 355,500 $ 245,564 2 169,500 105,750 8 274,500 156,250 3 269,500 210,100 9 75,100 60,500 4 209,500 104,500 10 154,500 135,125 5 294,500 206,000 11 6 194,500 116,500 12 98,500 104,500 98,500 77,150 Problem 18-1A (Algo) Part 1 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of variable cost per unit Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit Total variable costs at the high point Total fixed costs High-Low method - Calculation of fixed costs Total cost at the low point Variable costs at the low point: Volume at the…
es ! Required information [The following information applies to the questions displayed below.] Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold Total Cost Month Units Sold 1 321,000 $ 158,500 7 359,000 Total Cost $ 270,736 2 166,000 102,250 8 271,000 152,750 3 266,000 206,600 9 75,800 64,000 4 206,000 101,000 10 151,000 131,625 5 291,000 6 191,000 202,500 113,000 11 95,000 95,000 12 101,000 80,650 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit Total variable costs at the low point Total fixed costs High-Low…
Required information [The following information applies to the questions displayed below.) Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month 1 2 31 Units Sold 318,500 163,500 263,500 203,500 288,500 188,500 361,500 268,500 76,300 148,500 92,500 98,500 Total Cost $ 156,000 99,750 204,100 98,500 200,0০০ 110,500 288,956 150,250 66, 500 129,125 92,500 83,150 6. 8. 10 11 12 2. Predict future total costs when sales volume is (a) 377,000 units and (b) 417,000 units. 377,000 units 417,000 unita Total cost