Using the high-low method of cost estimation, total fixed costs are:
Q: Ravena Company manufactures office furniture. During the most productive month of the year, 3,500…
A: There are two type of costs that are being incurred in business. These are fixed costs and variable…
Q: XYZ Company uses the high-low method to analyze mixed costs. During the year, the highest level of…
A: High-low method is used to differentiate the fixed and variable cost from a limited amount of data.
Q: Sully Company provided the following information for last month. Production in units 3,000 Direct…
A: Total sales commission = sales units x commission per unit = 3000*$4 = $12,000
Q: Beamish Inc., which produces a single product, has provided the following data for its most recent…
A: Fixed manufacturing overhead per unit = Total Fixed manufacturing overhead / No. of units produced…
Q: Northridge, Inc., uses the high-low method to analyze cost behavior. The company observed that at…
A: High-low is a method in cost accounting helps to bifurcate fixed and variable costs from a given…
Q: Galaxy, Inc., a manufacturer of telescopes, began operations on June 1 of the current year. During…
A:
Q: Davis Corporation reported the following for the month of November: Total hourly wages of plant…
A: The question is based on the concept of Cost Accounting.
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Calculate the amount of production cost for 16,200 units (17,800-1,600 units).
Q: Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Platinum Co. is an English manufacturing company whose total factory overhead costs fluctuate…
A: Predetermined overhead rate = Estimated manufacturing OH/Estimated machine hours
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Variable costing income statement: This statement shows the net operating income after subtracting…
Q: Strait Co. manufactures office furniture. During the most productive month of the year, 3,200 desks…
A: The High-low method is a way to find the variable cost per unit fixed cost by comparing the highest…
Q: Nelter Corporation, which has only one product, has provided the following data concerning its most…
A: Variable Costing: In management accounting, the notion of variable costs is known as variable…
Q: Kray Inc., which produces a single product, has provided the following data for its most recent…
A: Variable product cost per unit includes direct material, direct labor, and variable manufacturing…
Q: Strait Co. manufactures office furniture. During the most productive month of the year, 3,300 desks…
A: Variable costs are those which varies with the change in the level of production. It is the cost…
Q: Sheridan Company's high and low level activity last year was 56000 units of product produced in May…
A:
Q: The manufacturing cost of Calico Industries for three months of the year are provided below.…
A: A high low method is used to separate the mixed cost into fixed cost and variable cost. In this…
Q: Gabuat Corporation, which has only one product, has provided the following data concerning its most…
A: Variable costing is a method of costing under which all variable costs are part of product costs.
Q: Dallavalle Corporation manufactures and sells one product. The following information pertains to the…
A: Super variable costing considers the totally variable cost as a part of the cost of inventory. This…
Q: The following data relate to the Lisle Company for May and August of the current year: May 25,000…
A: Variable cost per unit = ($1,247,000 - $1,175,000) / (29,000 - 25,000) = $18 Fixed cost =…
Q: Fairground, Inc. is a manufacturer. During its first year of operations, the firm produced 21,600…
A: Fixed overhead cost per unit = Total Fixed overhead / No. of units produced = $32,400 / 21,600 units…
Q: Dallavalle Corporation manufactures and sells one product. The following information pertains to the…
A: Super variable costing consider all Direct Labour and manufacturing and selling and Administration…
Q: ABC Ltd is a manufacturing company that makes only three products P, Q and R. Data for the period…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: The manufacturing costs of Callico Industries for three months of the year are provided below: Total…
A: The High-low method is a cost computation technique that separates variable and fixed cost from…
Q: .-Strait Co. manufactures office furniture. During the most productive month of the year, 3,400…
A: A high low method is used to separate the mixed cost into fixed cost and variable cost. In this…
Q: Strait Co. manufactures office furniture. During the most productive month of the year, 3,800 desks…
A: Every organization involved in the production sector incurs various costs, which are mainly divided…
Q: Atlanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine…
A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…
Q: Amex Company, which has woolen scarves to produce, has provided the following data concerning its…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: A business operated at 100% of capacity during its first month, with the following results: Sales…
A:
Q: Strait Co. manufactures office furniture. During the most productive month of the year, 3,600 desks…
A: The high low method is used to differentiate the fixed cost and variable cost from the mixed cost.
Q: Strait Co. manufactures office furniture. During the most productive month of the year, 3,200 desks…
A: Given the following information: Highest activity cost (HAC): $83,200 Highest activity units (HAU):…
Q: furniture. During the most productive month of the year, 3,100 desks were manufactured at a total…
A: High cost =82600 High production =3100 low cost =58100 lower production =1160
Q: Dallavalle Corporation manufactures and sells one product. The following information pertains to the…
A: Answer Direct material =$93 Assigned Direct labour =$10 per unit Fixed manufacturing overhead = $67…
Q: Company XYZ is a manufacturing company . During the month of March the company produced 100 units…
A: Ans. Total variable cost is calculated by adding up all the costs which varies with the level of…
Q: First Buy Company provided the following manufacturing costs for the month of June. Direct labor…
A: The variable costs are the costs that changes with change in production units number.
Q: Atlanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine…
A: A high low method is known to separate the mixed cost into fixed cost and variable cost. In this…
Q: Western Trucking operates a fieet of delivery trucks. The fixed expenses to operate the fleet are…
A: Total Cost = Fixed Cost + Variable Cost Variable Cost = Total Miles Driven * Variable Cost Per Mile…
Q: The contribution margin per unit was:
A: Contribution margin per unit = Sales price per unit - Variable cost per unit
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Total units sold=17,100 units-1,600 units=15,500 units
Q: Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company…
A: The income statement is the statement the company prepares to calculate net income or loss after…
Q: At high level of activity in November, 8000 machine hours were run and power cost were $18,00. In…
A: High-Low Method: The high-low method is that method by which the variable component and the fixed…
Q: The manufacturing costs of Calico Industries for three months of the year are provided below: Total…
A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…
Q: Beamish Incorporated, which produces a single product, has provided the following data for its most…
A: The production cost as per absorption costing includes direct expenses and manufacturing overhead.…
Q: Pena Co. manufactures concert merchandise. During the most productive month of the year, 6,000…
A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…
Q: The Janesky Company has collected data on the manufacture of 6,473 robot grippers last month. The…
A: Variable cost per unit=Material+Labor+Variable overheadUnits=$142,853+$379,071+$267,4256,473=$121.94
Q: Strait Co. manufactures office furniture. During the most productive month of the year, 3,200 desks…
A: Lets understand the basics. In high low method, fixed cost and variable cost gets separated from…
Q: During the month of May, Lorna Corporation sold 1,000 units. The cost per unit for May was as…
A: Net operating income under absorption costing = Net operating income under variable costing +…
Q: Davison Corporation, which has only one product, has provided the following data concerning its most…
A: A period cost is a cost which cannot be capitalized into prepaid expenses, inventory, or fixed…
Marcye Co. manufactures office furniture. During the most productive month of the year, 3,500 desks were manufactured at a total cost of $84,400. In its slowest month,the company made 1,100 desks at a cost of $46,000. Using the high-low method of cost estimation, total fixed costs are:
a. $56,000
b. $28,400
c. $17,600
d. cannot be determined from the data given
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
- Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?During the week of August 21, Parley Manufacturing produced and shipped 4,000 units of its machine tools: 1,500 units of Tool SK1 and 2,500 units of Tool SK3. The cycle time for SK1 is 0.73 hour, and the cycle time for SK3 is 0.56 hour. The following costs were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Tool SK1 is responsible for 60% of the materials cost. Calculate the unit cost for Tool SK 1 and Tool SK3, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was a. 55,500 b. 92,500 c. 66,500 d. 39,900
- Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was Refer to the information in 2.24. The gross margin percentage for last year was a. 12.57% b. 55.67% c. 28.95% d. 38.33%During the week of May 10, Hyrum Manufacturing produced and shipped 16,000 units of its aluminum wheels: 4,000 units of Model A and 12,000 units of Model B. The cycle time for Model A is 1.09 hours and for Model B is 0.47 hour. The following costs and production hours were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Model A is responsible for 40% of the materials cost. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.Orinder Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 275,800, direct labor cost was 153,000, and overhead cost was 267,300. There were 25,000 units produced. Unit manufacturing cost (rounded to the nearest cent) is a. 28.40 b. 27.98 c. 34.95 d. 27.55
- Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?Western Trucking operates a fleet of delivery trucks. The fixed expenses to operate the fleet are $79,900 in March and rose to $93,120 in April. It costs Western Trucking $0.15 per mile in variable costs. In March, the delivery trucks were driven a total of 85,000 miles, and in April,. they were driven a total of 96,000 miles. Using this information, answer the following: A. What were the total costs to operate the fleet in March and April, respectively? B. What were the cost per mile to operate the fleet in March and April, respectively?