The costs of a company's call center for a number of recent months are listed below: Calls Taken Call Center Cost April May 7,570 $ 82,069 7,539 $ 81,882 June 7,580 $ 82,133 July 7,578 $.82,106 August 7,545 $ 81,925 September October 7,559 $ 82,004 November 7,602 $ 82,264 7,589 $ 82,201 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Required: Estimate the variable cost per call and fixed cost per month using the least-squares regression method. (Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) Variable cost Fixed cost per call per month

The costs of a company's call center for a number of recent months are listed below: Calls Taken Call Center Cost April May 7,570 $ 82,069 7,539 $ 81,882 June 7,580 $ 82,133 July 7,578 $.82,106 August 7,545 $ 81,925 September October 7,559 $ 82,004 November 7,602 $ 82,264 7,589 $ 82,201 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Required: Estimate the variable cost per call and fixed cost per month using the least-squares regression method. (Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) Variable cost Fixed cost per call per month

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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a-1. What is the cost per unit for paychecks processed? a-2. What is the cost per unit for customer accounts maintained? a-3. What is the cost per unit for special analyses performed? b. Assuming the followiing level of cost-driver volumes for a month, what are the accounting department's estimated costs of doing busines using the account analysis approach? -1000 paycheck processed -200 customer accounts maintained -3 special analyses
How do I determine the company's total contribution margin, contribution margin per service call, and contribution margin ratio when 50 service calls are made in the month of June? Problem E21-23
The accounting department of a large limousine company is analyzing the costs of its services. The cost data and level of activity for the past 16 months follow. Month Special Analyses CustomerAccounts PaychecksProcessed AccountingService Costs 1 2 325 1,029 $ 63,800 2 4 310 993 68,900 3 2 302 1,268 64,000 4 1 213 1,028 61,300 5 2 222 984 61,600 6 0 214 712 50,800 7 1 131 762 51,020 8 1 123 739 54,300 9 0 115 708 50,500 10 2 296 1,232 64,800 11 2 213 978 58,000 12 1 222 929 57,500 13 2 217 1,059 62,200 14 2 132 942 54,900 15 4 300 1,299 71,530 16 4 315 1,283 64,800 Totals 30 3,650 15,945 $ 959,950 In…
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format incomestatement for a recent month for the two games appears below:Claimjumper Makeover TotalSales ............................................ $30,000 $70,000 $100,000Variable expenses ...................... 20,000 50,000 70,000Contribution margin ..................... $10,000 $20,000 30,000Fixed expenses .......................... 24,000Net operating income .................. $ 6,000Required:1. Compute the overall contribution margin (CM) ratio for the company.2. Compute the overall break-even point for the company in sales dollars.3. Verify the overall break-even point for the company by constructing a contribution format incomestatement showing the appropriate levels of sales for the two products.
Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows:bre27076_ch06_256-305.indd 292 7/14/09 11:44:37 PMAmount Percent of SalesSales ............................................ $80,000 100%Variable expenses ....................... 32,000 40%Contribution margin ..................... 48,000 60%Fixed expenses ........................... 38,000Net operating income .................. $10,000Required:1. Compute the company’s degree of operating leverage.2. Using the degree of operating leverage, estimate the impact on net operating income of a 5% increasein sales.3. Verify your estimate from part (2) above by constructing a new contribution format income statementfor the company assuming a 5% increase in sales.
The cost data for Evencoat Paint for the year 2019 is as follows: Evencoat Paint data Month Gallons of Paint Produced Equipment Maintenance Expenses January 110,000 $70,700 February 68,000 66,800 March 71,000 67,000 April 77,000 68,100 May 95,000 69,200 June 101,000 70,300 July 125,000 70,400 August 95,000 68,900 September 95,000 69,500 October 89,000 68,600 November 128,000 72,800 December 122,000 71,450 Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Y=$ + x What are the fixed costs? What are the variable costs per gallon of paint produced? Predict the maintenance costs if 90,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced.
REQUIRED: Calculate the company's total contribution margin last month. a. P924,000 b. P392,000 c. P882,000 d. P1,274,000
8. Day Mail Order Co. applied the high-low method of cost estimation to customer order data for the first four months of 2020. What is the estimated variable order filing cost component per order? Orders 1,200 1,300 1,800 1,700 Costs Р3,120 3,185 January February March 4,320 3,895 April а. Р2.00 b. P2.42 с. Р2.48 d. P2.50 e. None of these; answer is
Green Tea’s data show the following information for the financial year, beginning July 2020: July Aug. Sept. Oct. Nov. Estimated sales (units) 25,000 25,000 27,000 27,500 28,000 Sales price per unit $31 $31 $31 $31 $31 Direct labour per unit $1.75 $1.75 $1.50 $1.50 $1.50 Labour rate per hour $21 $21 $24 $24 $24 New machinery will be added in September. This machine will reduce the labour required per unit and increase the labour rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next month’s requirements. Direct material requires 2.5 kg per unit at a cost of $5 per kg. The ending inventory required for direct materials is 20% of the next month’s needs. In July, the beginning inventory is 3,750 units of finished goods and 13,125 kg of materials. Required: i) Prepare a production budget for the first quarter of the year (i.e. July – September).…
The controller of Cullumber Industries has collected the following monthly expense data for analyzing the cost behavior of electricity costs. Total Electricity Costs Total Machine Hours January $1.890 270 February 2.970 360 March 3400 470 April 4,610 685 May 3.220 440 June 4,910 710 July 4,120 645 August 3,880 530 September 5,160 660 October 4,380 620 November 3.240 360 December 6,290 730 (a) Determine the fixed- and variable-cost components using regression analysis (We recommend the use of Excel) (Round fixed cost to 3 decimal places e.g. 1.252 and variable cost to 5 decimal places eg. 1.25125.) Fixed costs %24 Variable-cost 24
Bubba Manufacturing Company provided the following information for the fiscal year toJune 30, 2020:Inventories 01/07/2019 30/06/2020Direct MaterialsWork-in-ProcessFinished Goods$72,000107,000149,500$65,000128,000141,700Other information:Office cleaner’s wages 4,500Sales Revenue 1,031,000Raw materials purchased 235,000Factory wages 239,700Indirect materials 23,500Delivery truck driver’s wages 15,400Indirect labor 9,500Depreciation on factory plant & equipment 32,000Insurance 1 60,000Depreciation on delivery truck 7,250Utilities 2 118,750Administrative salaries 41,250Special Design Costs 5,000Selling expenses 9,000Sales Commission 2% of gross profit1 Of the total insurance, 66⅔% relates to the factory facilities & 33⅓% relates to general& administrative costs.2 Of the total utilities, 80% relates to the manufacturing facilities & 20% relates to theoffice area.Requirements:a) What was the amount of direct materials used in production?b) What was the amount of manufacturing…
Bubba Manufacturing Company provided the following information for the fiscal year toJune 30, 2020:Inventories 01/07/2019 30/06/2020Direct Materials $72,000 $65,000Work-in-Process $107,000 $128,000Finished Goods $149,500 $141,700Other information:Office cleaner’s wages 4,500Sales Revenue 1,031,000Raw materials purchased 235,000Factory wages 239,700Indirect materials 23,500Delivery truck driver’s wages 15,400Indirect labor 9,500Depreciation on factory plant & equipment 32,000Insurance 1 60,000Depreciation on delivery truck 7,250Utilities 2 118,750Administrative salaries 41,250Special Design Costs 5,000Selling expenses 9,000Sales Commission 2% of gross profit 1 Of the total insurance, 66⅔% relates to the factory facilities & 33⅓% relates to general& administrative costs.2 Of the total utilities, 80% relates to the manufacturing facilities & 20% relates to theoffice area. Requirements:…