If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for1,900mailboxes?5.If the plant manager uses the cost equation to predict total costs, what would the forecast be for1,900mailboxes?6.What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why? Green Mailbox produces decorative mailboxes. The company's average cost per unit is $27.43 when it produces 1,700 mailboxes.Read the requirements.Requirement 1. What is the total cost of producing 1,700 mailboxes?The total cost of producing 1,700 mailboxes is $Requirement 2. If $22,831 of the total costs are fixed, what is the variable cost of producing each mailbox?The variable cost per unit isRequirement 3. Write Green Mailbox's cost equation.y =$14.00X +$22.831$14.00(...)46,631Requirement 4. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,900 mailboxes?The total cost is

Variable cost is the cost which changes with change in production volume and it is relevant in…

If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,900 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,900 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why?

If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,900 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,900 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...

See similar textbooks

Similar questions

Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Requirements 1. 2. 3. 4. What is the total cost of producing 1,200 mailboxes? If $18,516 of the total costs are fixed, what is the variable cost of producing each mailbox? Write Branson Mailbox's cost equation. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,500 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,500 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why?
Best Birdies produces ornate birdcages. The company's average cost per unit is $18 when it produces 2,200 birdcages. If $5,800 of the total costs are fixed, what is the variable cost of producing each birdcage?
Use this information for Carmen Co. to answer the question that follow. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.05 per pound and costs $14.35 per pound to produce. Product D would sell for $40.95 per pound and would require an additional cost of $10.35 per pound to produce. What is the differential cost of producing Product D? a.$6.21 per pound b.$10.35 per pound c.$12.42 per pound d.$8.28 per pound
Bambam Inc. produces BingBong products. Cost data are as follows: Fixed selling cost of 200; variable product cost of 5 per unit; variable selling cost of 2 per unit and fixed overhead cost of 500. If the company will produce 500 units, what is the total cost?
Switch Manufacturing Co. builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Product selling price per unit variable cost per unit trunk switch $60.00 $28.00 gas door switch $75.00 $33.00 Glove Box Light $40.00 $22.00 Their sales mix is reflected in the ratio 4:4:1. What is the overall unit contribution margin for Switch Manufacturing Co. with their current product mix? If annual fixed costs shared by the three products are $18,840 how many units of each product will need to be sold in order for Switch Manufacturing to break even?
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $32 per pound and costs $29 per pound to produce. Product C would sell for $61 per pound and would require an additional cost of $23 per pound to produce. What is the differential cost of producing Product C? a. $32 per pound b. $29 per pound c. $61 per pound d. $23 per pound
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $34 per pound and costs $28 per pound to produce. Product C would sell for $58 per pound and would require an additional cost of $23 per pound to produce. What is the differential cost of producing Product C?
Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,480 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit 161 34 24 19 $138 Fixed costs: Factory overhead Selling and administrative expenses Voice Com desires a profit equal to a 14% return on invested assets of $600,700. a. Determine the amount of desired profit from the production and sale of 5,400 cell phones. 84,098 ✔ $201,600 71,600 b. Determine the product cost per unit for the production of 5,480 cell phones. Round your answer to the nearest whole dollar. 156 ✔ per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. X%
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $31 per pound and costs $29 per pound to produce. Product C would sell for $56 per pound and would require an additional cost of $23 per pound to produce. What is the differential cost of producing Product C? Oa. $23 per pound Ob. $29 per pound Oc. $56 per pound Od. $31 per pound
Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells for $24. Calculate Juniper’s contribution margin per unit and contribution margin ratio. If the company’s fixed costs total $6,660, determine how many clocks Juniper must sell to break even. 1. Calculate Juniper’s contribution margin per unit and contribution margin ratio. unit contribution margin contribution marjin ratio 2. If the company’s fixed costs total $6,660, determine how many clocks Juniper must sell to break even.